Current through all regulations passed and filed through September 16, 2024
(A)
Employer
defined
For the purposes of rules in agency
4141 of the Administrative Code, unless the context of a particular rule
clearly has a contrary meaning, the term "contributory employer" is to mean an
employer liable for the payment of contributions. The term "reimbursing
employer" is to mean a public entity or Indian tribe as defined in division (A)
of section 4141.242 of the Revised Code, or
a nonprofit organization that has elected to make payments in lieu of
contributions under section
4141.241 of the Revised Code.
When the term "employer" is used it means the rule is applicable to either a
contributory or a reimbursing employer.
(B)
General
partnerships
General partners in a general
partnership or a limited partnership are not in the employment of the
partnership. Such general partners will not be considered in determining the
total number of individuals in the employment of a firm. Wages received by the
general partners do not constitute remuneration under Chapter 4141. of the
Revised Code.
(C)
Limited partnership associations, limited partnerships
and limited liability companies
(1)
Members of a limited partnership association, as that
term is defined in Chapter 1783. of the Revised Code, are deemed to be in the
employment of the association if performing services for remuneration for the
association.
(2)
Individuals who are limited partners in a limited
partnership pursuant to Chapter 1782. of the Revised Code will be considered in
the employment of the limited partnership to the extent that remuneration in a
form other than share of profits is received by such limited partners for
services performed for the limited partnership.
(3)
The determination
as to whether individuals are in covered employment with a single-member
limited liability company for the purposes of Chapter 4141. of the Revised Code
will be determined based on the limited liability company's tax classification
for federal income and federal unemployment tax purposes as follows:
(a)
The member of a
single-member limited liability company that has not elected to be treated as a
corporation will be treated as a sole proprietor. Services performed for the
limited liability company by family members of the sole proprietor, as that
term is defined by division (B)(3)(f) of section
4141.01 of the Revised Code,
will not constitute covered employment with the limited liability
company.
(b)
The member of a single-member limited liability company
that has elected to be treated as a corporation will be considered to be in
covered employment with the limited liability company if the member receives
remuneration for services rendered to the limited liability company or renders
services in anticipation of receiving remuneration from the limited liability
company.
(c)
If the member of a single-member limited liability
company is a corporation, a corporate officer of that corporation will be
considered to be in covered employment with the limited liability company if
the officer receives remuneration for services rendered to the limited
liability company, or renders services to the limited liability company in
anticipation of receiving remuneration.
(4)
The determination
as to whether individuals are in the employment of a multi-member limited
liability company for the purposes of Chapter 4141. of the Revised Code will be
determined based on the limited liability company's tax classification for
federal income and federal unemployment tax purposes, as follows:
(a)
If all of the
members of a multi-member limited liability company that has not elected to be
treated as a corporation are individuals, the members will be treated as
partners. Services performed for the limited liability company by family
members of the sole proprietor, as that term is defined by division (B)(3)(f)
of section 4141.01 of the Revised Code,
will not constitute covered employment with the limited liability
company.
(b)
If the members of a multi-member limited liability
company that has elected to be treated as a corporation are two or more
individuals, they will be considered to be in covered employment with the
limited liability company if they receive remuneration for services rendered to
the limited liability company, or render services to the limited liability
company in anticipation of receiving remuneration.
(c)
If the members of
a multi-member limited liability company are corporations, a corporate officer
of any of those corporations will be considered to be in covered employment
with the limited liability company if the officer receives remuneration for
services rendered to the limited liability company, or renders services to the
limited liability company in anticipation of receiving
remuneration.
(D)
Corporate
officers and directors
(1)
If an officer of a corporation received remuneration
for services rendered to the corporation or renders services in anticipation of
receiving remuneration from the corporation, the officer will be considered in
the employment of such corporation as provided in division (B)(1) of section
4141.01 of the Revised
Code.
(2)
Remuneration received by an officer of a corporation
for services performed for the corporation which meets the terms of paragraph
(A) of this rule is not to be treated as partnership income by what may be
known as a "subchapter-S" arrangement or by some other similar arrangement.
Distributions and other payments by a "subchapter-S" corporation to a corporate
officer or shareholder will be treated as wages to the extent the amounts are
reasonable compensation for services to the corporation by an
employee.
(3)
A director of a corporation who performs only the usual
duties of a director will not be considered in the employment of such
corporation.
Replaces: 4141-1-01, 4141-1-03, 4141-1-04, 4141-1-05
