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
with respect to the definition of an employing unit or of OCGA Section
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
(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
Ga. Comp. R. & Regs. R. 300-2-7-.12
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.