Md. Code Regs. 09.32.01.18-2 - Covered Employment-Certain Business Entities
A. Sole Proprietorships.
(1) Except as otherwise provided, a person
performing services for wages for a sole proprietorship is engaged in covered
employment.
(2) The following
persons employed by a sole proprietor are not engaged in covered employment:
(a) The sole proprietor;
(b) A spouse of the sole
proprietor;
(c) Children of the
sole proprietor under the age of 21; and
(d) Parents of the sole proprietor.
B. Partnerships.
(1) A partner in a partnership is not engaged
in covered employment.
(2) If a
partnership consists exclusively of spouses, then their children under 21 years
old employed by the partnership are not engaged in covered
employment.
C.
Corporations with Revoked Charters.
(1) When
a corporate charter has been forfeited or revoked and the entity continues to
operate, the entity shall be treated as a sole proprietorship or a partnership,
as determined by the Secretary.
(2)
Persons determined by the Secretary to be sole proprietors or partners are not
engaged in covered employment.
(3)
Any other employee of the entity is engaged in covered employment.
D. Limited Liability Companies.
(1) If a limited liability company is
automatically classified as a corporation or elects to be classified as a
corporation for federal tax purposes, the limited liability company is treated
as a corporation for Maryland unemployment insurance purposes. All persons,
including members who receive remuneration from the limited liability company
for services performed, are engaged in covered employment.
(2) If a limited liability company has a
single member and is not classified as a corporation for federal tax purposes,
the limited liability company is treated as a sole proprietorship for Maryland
unemployment insurance purposes. The following persons employed by the single
member limited liability company are not engaged in covered employment:
(a) The single member;
(b) The spouse of the member;
(c) Children younger than 21 years old of the
member; and
(d) Parents of the
member.
(3) If a limited
liability company consists of two or more members and is not classified as a
corporation for federal tax purposes, the limited liability company is treated
as a partnership for Maryland unemployment insurance purposes. The following
persons employed by the limited liability company are not engaged in covered
employment:
(a) The members; and
(b) Children younger than 21 years old of the
member, if the members of the limited liability company consist exclusively of
spouses.
Notes
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