(1)
This section applies if your claim for benefits is based on wages from a
corporation that are 25 percent or more of your total covered base year wages
and you are an officer of that corporation who:
(a) Owns 10 percent or more of the
outstanding stock or shares of the corporation; or
(b) Has a family member who is also a
corporate officer who owns 10 percent or more of the outstanding stock or
shares of the corporation. For purposes of this section, a "family member" is a
person related by blood or marriage or domestic partnership as parent,
stepparent, grandparent, spouse or domestic partner, child, brother, sister,
stepchild, adopted child, or grandchild.
(2) At any time during the benefit year of
your claim, you are a corporate officer under subsection (1) of this section
even if you are not paid wages during that time.
(3) You are considered unemployed and
potentially eligible for benefits for weeks after:
(a) The corporation dissolves; or
(b) You permanently resign or are permanently
removed as a corporate officer under the articles of incorporation or bylaws.
For purposes of this section, "permanently" means for a
period of indefinite duration, but expected to extend at least through the
claimant's benefit year end date.
(4) You will be ineligible for benefits and
liable for repayment of all benefits paid during that benefit year if you take
a position as a corporate officer as defined under subsection (1) of this
section at any time during your claim.
(5) For purposes of this section, the
department will consider a corporation dissolved when the corporation has
provided the department with at least two of the following documents:
(a) A business licensing service change form
requesting closure of the corporate account;
(b) A department of revenue clearance
certificate;
(c) Articles of
dissolution of a Washington profit corporation filed with the secretary of
state; or
(d) A court order
dissolving the corporation.
(6) A corporation must provide notice to the
department in a format approved by the department when the ownership percentage
of a corporate officer increases to become 10 percent or more or decreases to
become less than 10 percent. The notice is due by the time the next quarterly
tax and wage report is due from the corporation.
(7) Subsection (1) of this section does not
apply to officers of an employee cooperative corporation organized under
chapter 23.78 RCW, a cooperative association organized under chapter 23.86 RCW,
or a limited cooperative association organized under chapter 23.100 RCW. An
officer of an employee cooperative corporation organized under chapter 23.78
RCW, a cooperative association organized under chapter 23.86 RCW, or a limited
cooperative association under chapter 23.100 RCW will not be considered to be
performing services by acting only as an officer for the entity.
