Select New Employer, then select Next. Select Register for Employer Payroll Tax Account Number.It's not just the S corps, you need to set up payroll and pay yourself as a W-2 employee to pay into UI and other payroll taxes. Many states normally don't provide UI benefits to corporate officers unless the Corp is out of business. The corporation must report your wages and pay contributions for Unemployment Insurance (UI) and Employment. The corporation must report your wages and pay contributions for Unemployment Insurance (UI) and Employment Training. Applying for unemployment insurance in California can be confusing, but it doesn't have to be! In this longish blog post, I summarize how you can elect to opt out of paying state payroll taxes for unemployment insurance and workers compensation insurance. Remember: Fill out the E.D.D. forms completely. The claim processing is computerized and any unanswered questions will delay payment of your benefits.