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Posted by D Sherman [72.47.9.228] on Saturday, December 18, 2010 at 00:07:36 :
In Reply to: Re: can't you pay into unemployment posted by Jerry in Idaho [64.139.238.43] on Friday, December 17, 2010 at 23:29:54 :
You put your business in your wife's name. When business slows down, she lays you off and you draw unemployment until the unemployment runs out and then she hires you back again. This also gives you an edge in bidding on government contracts because they have set-asides for women and minority owned businesses. I've known several contractors and one large janitorial company that do this. You can't lay yourself off and collect unemployment but there's no rule about how related you can be to your boss, nor is there any rule that the woman "owner" of a business can't hire her husband to do most of the work.
Some years ago I met a man hiking in the mountains while "unemployed". It was June and he'd already been out in the woods for about a month, and was going to try to make it until Labor Day to win a bar bet. He and his buddy had figured out how to give themselves 6 months paid vacation per year. They took turns driving a logging truck. His buddy's wife owned the logging truck. She would hire her husband for 6 months, then lay him off and hire this guy for 6 months. Then she'd lay him off and hire her husband back. They'd kept this deal going for years. While he was in the mountains hiking, the buddy's wife was filling out the weekly unemployment forms and depositing his checks. Back then you had to actually send in a piece of paper listing three place that you'd applied to work at each week, and it was also before direct-deposit. Now you just call in on a phone and punch some buttons to say you were ready, willing, and able to work and that you applied for jobs. I've never heard of anyone being audited or denied. Nobody checks that you actually applied for jobs, and even if you're afraid they might, all you have to do is be sure to apply at places that aren't hiring and for jobs you're not qualified for.