What are the reporting requirements for the family-owned corporation?

Upon request, employers are required to furnish the department a copy of Form 940, “Employer’s Annual Federal Unemployment (FUTA) Tax Return,” filed with the Internal Revenue Service. Report any change that affects the corporation’s eligibility for exclusion from coverage within 5 working days from the date of the change. Family-owned corporation exclusion is revoked on the date of any one of the following changes:

• The excluded corporation hired an employee in addition to the 50% shareholder-employees.
• One of the shareholder-employees owns less than 50% of the issued shares.
• Any owner is not a family related by blood, marriage, or legal adoption.