unemplogo.jpg (50480 bytes) The Division of Unemployment Insurance serves workers who are unemployed through no fault of their own by providing temporary income maintenance during their period of unemployment and making referrals to re-employment services.

The Division also serves employers by ensuring that only those unemployed individuals meeting all eligibility criteria receive UI benefits, thereby protecting future increases in employer tax rates and the solvency of Delaware’s UI Trust Fund.
III. EMPLOYMENT
  1. Employing Unit

 

    1. "Employing unit", for unemployment insurance purposes, means any individual, partnership, corporation, or any other type of organization, that has in its employ one or more individuals performing services within this State. "Employing unit" also means any governmental entity which has in its employ individuals performing services in this State.

    2. "Employment", for the purpose of U.I. coverage, is defined as any service, unless specifically excluded, performed by an individual for remuneration under a contract of hire, whether the contract is written or oral, express or implied (Section 3302)(10) and (21).

    3. "Employment" also includes:

      1. Service performed by an individual in the employ of this State or its local governments.

      2. Service performed by an individual employed by a religious, charitable, educational or other organization, if the organization had four or more individuals in employment for some portion of a day in each of 20 different weeks, whether or not the weeks were consecutive. An exception to this provision would be church related schools.

  1. Exclusions from the Definition of Employment

    2. Employment for the purpose of U.I. coverage does not apply to services performed:

    1. In the employ of a church (except as specified above).

    2. By a minister of a church in the exercise of his ministry.

    3. By an elected official in the exercise of his duties.

    4. By a member of a legislative body or member of the judiciary.

    5. By a member of the State Army National Guard or State Air National Guard.

    6. By an employee serving on a temporary basis in case of an emergency.

    7. By an insurance agent or real estate agent if such service is performed for remuneration solely by way of commission. However, employer paid fringe benefits such as health, life, or disability insurance are non-commission forms of remuneration that bring the service of a commission based insurance agent or real estate agent under the definition of covered employment.

    8. By an individual in the employ of his son or daughter or spouse, and service performed by a child under the age of 18 in the employ of his father or mother. (Does not apply to a corporation.)

    9. In the employ of a nonprofit organization operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, or for the prevention of cruelty to animals or children, or for any political campaign on behalf of a candidate for public office (except as specified in the section on EMPLOYMENT above).

    10. In the employ of a school, college or university, if such service is performed by a student who is enrolled and is regularly attending classes at such institutions.

    11. By the principal of a proprietorship or the members of a partnership.

    12. As a direct seller as defined in Section 3508 of the Internal Revenue Code.

Pursuant to an amendment to Section 3302(10), Title 19, Delaware Code, services performed by officers of closely-held corporations on or after January 1, 1996 are considered covered employment and the wages earned by these corporate officers are subject to unemployment insurance tax. Use of Form UIS-39 (Request for Coverage of Corporate Officers) was discontinued at that time.