Md. Code Regs. 09.32.01.23

Current through Register Vol. 51, No. 12, June 14, 2024

Section 09.32.01.23 - Common Paymasters

A. Definitions.

(1) For the purpose of this regulation, "related corporation" means a member of a controlled group of corporations as the term is defined in the Internal Revenue Code.

(2) For purposes of this regulation, an individual is considered "concurrently employed" by two or more related corporations if the individual performs services for covered wages for the common paymaster for some portion of each calendar year.

B. Payment through Common Paymaster.

(1) When two or more related corporations concurrently employ the same individual and compensate that individual through a common paymaster, and when the common paymaster is one of the related corporations that employs the individual, each corporation shall be considered to have paid only the remuneration it actually disburses to that individual. If all the remuneration to the individual from the related corporations is disbursed through the common paymaster, the total amount of wages disbursed by the common paymaster shall be deemed wages subject to contribution. The common paymaster shall be responsible for filing the contribution report and the employment report.

(2) When two or more related corporations employ different individuals and compensate the individuals through a common paymaster, but the individual performs no service for the common paymaster during the calendar year, each corporation shall be considered to have paid only the remuneration it actually disburses to the individuals. The related corporations that pay the remuneration to the individuals shall each be responsible for filing the contribution reports and the employment reports.

C. The common paymaster shall notify the Secretary in writing, at least 30 days before the quarter for which the common paymaster reporting is to be effective, of the name and employer account number of each of the related corporations. The common paymaster shall notify the Secretary at least 30 days before any change or termination of the arrangement.

D. If the common paymaster fails to remit contributions due, the common paymaster and each of the other related corporations shall be jointly and severally liable for the full amount of the unpaid portion of the contributions.

Md. Code Regs. 09.32.01.23

Regulations .23, Obligations of Employers, adopted effective June 24, 1991 (18:12 Md. R. 1340)