(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
Effective: 5/3/2024
Five Year Review (FYR) Dates: 05/03/2029
Certification: CERTIFIED ELECTRONICALLY
Date: 04/23/2024
Promulgated Under: 119.03
Statutory Authority: 4141.13, 4141.14
Rule Amplifies: 4141.01, 4141.13, 4141.242, 4141.241, 4141.33
Prior Effective Dates: 10/01/1941, 01/01/1974, 07/03/1986,
12/30/1991, 06/03/1996, 03/26/1999, 01/26/2002, 01/01/2003, 05/17/2007,
08/14/2008, 04/01/2012, 03/25/2013, 12/16/2013, 12/28/2017, 11/12/2018,
12/20/2018