Ga. Comp. R. & Regs. R. 300-2-7-.12 - Limited Liability Companies
(1) Tax treatment
of entity.
(a) Limited liability companies
("LLC") and other similar pass-through entities shall be treated the same as
partnerships for the purposes of unemployment contributions.
1. 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.
2. 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.
(b) 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.
(c) 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.
(2) Liability of members.
(a) 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.
(b) 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
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.