Do I Need To Pay Employment Security Tax If I Am Self Employed?

If you do not have any employees, you need not set up an Employment Security Compensation account. Sole proprietors, partners, and LLC members are not considered employees of a business. If you do have employees, you do need to set up an account to report and pay unemployment insurance taxes on your employees.

Please not that every business with an open account must file a quarterly contribution report even if they have no employees for the quarter. If the employer is not going to have employees for two or more quarters, he or she can call and have their account closed.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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