Ga. Comp. R. & Regs. R. 300-2-7-.12 - Limited Liability Companies

Current through Rules and Regulations filed through April 4, 2022

(1) Limited liability companies ("LLC") and other similar pass-through entities shall be treated the same as partnerships for the purposes of unemployment contributions. If such entity can demonstrate to the satisfaction of the Commissioner that it is receiving some other type treatment for purposes of federal income taxation, then the Commissioner shall consider that fact in determining whether remuneration paid constitutes taxable wages for purposes of the Employment Security Law. If an LLC is treated as a corporation for federal income tax purposes, the LLC shall likewise be treated as a corporation for purposes of taxation under the Employment Security Law. This rule does not modify the application of OCGA Section 34-8-34 with respect to the definition of an employing unit or of OCGA Section 34-8-33 with respect to the definition of an employer. An LLC, like any other covered employer, shall provide the department with its Federal Employer Identification Number when requested or required on any form, determination or letter instruction from the department. See Rule 300-2-2-.02(3).
(2) If management of the LLC is vested in its members, those members who are actively involved in management shall be deemed jointly and severally liable for payment of unemployment contributions. If management of the LLC is vested in one or more appointed managers who are not members of the LLC, then, in addition to such managers, all members of the LLC may nonetheless be deemed jointly and severally liable for payment of unemployment contributions, provided, however, any member who can demonstrate to the satisfaction of the Commissioner of Labor that the member has no legal authority or control over whether unemployment contributions are paid or employers' quarterly wage and tax reports are filed can be relieved of liability.

Notes

Ga. Comp. R. & Regs. R. 300-2-7-.12
O.C.G.A. Sec. 34-8-70.
Original Rule entitled "Limited Liability Companies" adopted. F. Jun. 25, 1998; eff. July 15, 1998. Amended: New title "Limited Liability Companies. Amended." F. Dec. 11, 2014; eff. Dec. 31, 2014.

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