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    1 Reply Latest reply on Nov 15, 2009 12:13 PM by LUCKIEST

    Maryland SUI/Federal UI

    LPMKen Newbie

      I own a business in Maryland that employs 210 lifeguards who are all students and dependents of their parents. Since none of my employees qualify to receive unemployment payments do I have to pay into the unemployment fund? Maryland and I negotiated and came to the conclusion (I have this in a letter from MD) that I don't have to pay on wages of employees that aren't qualified to receive unemployment. The problem I ran into when I didn't pay them was the Federal Gov. slapped me with a 5% Federal UI bill (apparently you don't have to pay the Feds 5% if you pay the SUI). Even after showing them the letter (which they said I would need to be exempted from Fed UI) they said I still have to pay. Has anyone had any experience with this? Is there any way I can be exempt from SUI and not have to pay the Feds 5%? Also, these lifeguards all make under $8500 which means that every dollar of the entire payroll is taxed at the unemployment rate.