What is Employment?

"Employment" means all work done for you by persons (regardless of age) whom you pay, whether permanently or temporarily employed, unless the work is specifically exempted from coverage by the provisions of the Act. Employment includes services performed by officers of a corporation including "S" corporations.

Wages of an individual employed to perform or assist in performing the work of an employee are reportable by you for unemployment insurance purposes. An individual is deemed to be engaged by the employee's employer if the employer had actual or constructive knowledge of the work performed by the individual. This is the case even when the individual is hired or paid by the employee. An employer is deemed to have constructive knowledge if he should have reasonably known or expected his employee to engage another individual.

Interstate Employment

Wages are reportable to Utah if:

1. The service is performed in this state. Service is considered to be Utah employment if it is performed entirely within Utah. The service is also considered to be Utah employment if performed both inside and outside of Utah, but the service outside of Utah is incidental to the service in Utah.

2. The service is not localized in any state. If the service is not localized in any state but some of the service is performed by the employee in Utah, the entire service is covered in Utah if one of the following conditions apply:

1. The employee's "base of operations" is in Utah,
2. The employee has no base of operations in Utah but is controlled and directed from basic authority which exists in Utah and the employee does some work in Utah,
3. The employee's residence is in Utah and a or b above do not apply, or
4. If a, b, or c do not apply, the employer may elect the state where the employee is covered by making the election under provisions for reciprocal coverage (Section 35A-4-106 of the Act).