As provided in OCGA Section
common paymaster established for a group of related corporations is any member
thereof that disburses remuneration to employees of two or more of those
corporations on their behalf. However, the common paymaster is not required to
disburse remuneration to all employees of the two or more related corporations.
(a) A common paymaster making disbursements
on behalf of related corporations to employed individuals shall be responsible
for taxes, interest and penalties imposed by the Employment Security Law on all
wages disbursed by it.
purposes of charging benefits paid and mailing notices to chargeable employers,
the common paymaster shall be considered the employer for all wages disbursed
to individuals by the common paymaster whether payment was for services
performed for the common paymaster or for a related corporation.
(2) If the common paymaster fails
to remit taxes, interest and penalties on all wages disbursed by it as required
by the Employment Security Law, the Commissioner may hold each of the related
corporations liable for a proportionate share of the obligation. Such
proportionate share may be based on sales, property, corporate payroll or any
other reasonable basis that reflects the distribution of services of the
pertinent employees between the related corporations. When there is no
reasonable basis for allocating the amount owed, it shall be divided equally
among the related corporations. If a related corporation fails to pay any
amount allocated to it pursuant to this section, the Commissioner may hold any
or all of the other related corporations liable for the full amount of the
unpaid taxes, interest and penalties.
Two or more corporations shall be
considered related corporations for an entire calendar quarter if they satisfy
any of the following tests at any time during that calendar quarter:
(a) More than fifty percent (50%) of the
total combined voting power of all classes of stock entitled to vote or more
than fifty percent (50%) of the value of shares of all classes of stock of each
corporation is owned by one or more of the other corporations, and the common
parent corporation owns stock possessing more than fifty percent (50%) of the
total combined voting power or more than fifty percent (50%) of the total value
of shares of all classes of stock of at least one of the other
(b) Five or fewer
persons who are individuals, estates or trusts own more than fifty percent
(50%) of the total combined voting power of all classes of stock entitled to
vote or more than fifty percent (50%) of the total value of all classes of
stock of each corporation, taking into account the stock ownership of each
person only to the extent such stock ownership is identical with respect to
each such corporation.
(c) A group
of two or more corporations is combined with a common parent corporation as
described in subsection (a) of this section and also such parent corporation is
a member of a group of corporations as described in subsection (b) of this
Fifty percent (50%) or
more of one corporation's officers are concurrently officers of the other
corporation. (e) Thirty percent (30%) or more of one corporation's employees
are concurrently employees of the other corporation. (f) When a corporation
that does not issue stock is involved, either:
1. Fifty percent (50%) or more of the members
of one corporation's board of directors (or other governing body) are members
of the other corporation's board of directors (or other governing body);
2. The holders of fifty percent
(50%) or more of the voting power to select members of one corporation's board
of directors (or other governing body) are concurrently the holders of more
than fifty percent (50%) of that power with respect to the other
For purposes of paragraph (3) of this
rule, concurrent employment means the simultaneous existence of an employment
relationship (within the meaning of the Employment Security Law) between an
individual and two or more corporations. Such a relationship contemplates the
performance of services by the individual for the benefit of the employing
corporation, not merely for the benefit of the group of corporations.
(a) The simultaneous existence of an
employment relationship with each corporation is a decisive factor. If it
exists, the fact that a particular employee is on leave or otherwise
temporarily inactive is immaterial.
(b) Employment is not concurrent with respect
to one of the related corporations if the employee's employment relationship
with that corporation is completely nonexistent during the periods when the
employee is not performing services for the corporation.
(c) An individual who does not perform
substantial services for a corporation is presumed not employed by that
(d) A corporation
which has no employees performing services for it in Georgia cannot be the
common paymaster for Georgia employees of its related corporations.
(5) Related corporations which
compensate their employees through a common paymaster shall file with the
Commissioner the details of their plan. The details shall include the names of
the related corporations, the name of the common paymaster corporation and the
class or classes of workers involved. The filing shall include documentation to
substantiate that the corporations are related as defined in section (3) of
this rule and that employees are concurrently employed. An amendment to the
plan shall be filed whenever there is a change in the related corporations
participating in the plan, a change in the common paymaster or a change in the
class or classes of workers involved.
(6) Plans submitted pursuant to section (5)
of this rule shall be filed within the thirty (30) day period following the end
of the calendar quarter in which the plan is in effect. Eligibility of an
employee to be compensated through a common paymaster shall be determined on a
(7) A common
paymaster is not a successor corporation pursuant to OCGA Section
for concurrent employees unless the related corporation ceases operations and
is acquired in its entirety by the common paymaster corporation.
Ga. Comp. R. & Regs. R. 300-2-2-.03
Original Rule entitled
"Labor Market Information Reports," filed January 9,
1989; effective January 29, 1989.
Repealed: New Rule entitled "Common Paymaster"
adopted. F. Aug. 28, 1992; eff.
Sept. 17, 1992.
Amended: F. Jun. 25,
1998; eff. July 15, 1998.