ID H0523

Public companies may exempt bona fide corporate officers from unemployment insurance coverage if the officer is a shareholder, exercises substantial control in daily management, and whose primary responsibilities do not include manual labor.

Non-public companies may exempt bona fide corporate officers from unemployment insurance coverage without regard to manual labor performance if the officer is a shareholder who voluntarily agrees to exemption and exercises substantial control in daily management.

Registration forms received and approved by December 15 become effective January 1 of the following year and remain in effect for at least two consecutive calendar years; forms received after December 15, 2011, and before July 31, 2012, become effective January 1, 2012, and remain in effect for at least two consecutive calendar years.

Newly formed corporations must register exempted corporate officers within 45 calendar days after submitting their Idaho business registration form, with exemptions becoming effective as of the date the business registration form was submitted and remaining in effect for at least two consecutive calendar years.

Exemptions from coverage are not retroactive except for elections made after December 15, 2011, and before July 31, 2012; corporations are not eligible for refunds or credits for contributions paid before the exemption effective date.