This chapter sets out the reporting requirements, payment requirements, and related procedures for employers. In this chapter, the following terms have the meanings indicated. Terms Defined. “Administrative fee” means the fee due and owing on an employer's taxable wage base under §8-605.1 of the Unemployment Insurance Law. “Contributor” means an employing unit liable for contributions on taxable wages for covered employment. “Covered employment” means service performed for an employing unit that is subject to the Unemployment Insurance Law as determined by the Secretary. “Department” means the Maryland Department of Labor. “Reimburser” means a nonprofit organization or governmental unit, as defined in the Unemployment Insurance Law, that elects to finance its Unemployment Insurance liability through self-insurance. “Secretary” means the Secretary of Labor or the Secretary's designee. “Unemployment Insurance Law” means Labor and Employment Article, Title 8, Annotated Code of Maryland. Unless the context indicates otherwise, all other terms used in this chapter shall have the same meanings as in the Unemployment Insurance Law or in COMAR 09.32.02. Registration. An employer shall file a registration application with the Comptroller of the Treasury within 20 days after the first day the business begins operation. Further Information. Additional or supplemental reports to determine liability shall be filed at the Secretary's request. An employer that contends it is not liable under the Unemployment Insurance Law shall submit to the Secretary information to support that contention. Determination. The Secretary shall review the registration application and any additional or supplemental reports to determine the employer's liability pursuant to the Unemployment Insurance Law. Review. An employing unit that disputes the liability determination may seek review of the determination pursuant to Labor and Employment Article, §8-604, Annotated Code of Maryland. An employing unit currently assigned an account number shall post notices in a prominent place near the actual employment locations, in a number and form designated by the Secretary, informing employees: That the employing unit is liable for contributions or payments instead of contributions under the Unemployment Insurance Law; Of their rights to benefits under the Unemployment Insurance Law; and Of other information required by the Unemployment Insurance Law. Contributor. Benefit Payments Charged. Except as provided in §A(2) of this regulation or in the Unemployment Insurance Law, the earned-rate record of a contributor who is a base period employer shall be charged with all regular and work-sharing benefit payments, the appropriate share of extended benefit payments, and dependents' allowance. Benefit Payments Not Chargeable. Benefit payments may not be charged against the earned-rate record of a contributor who is a base period employer when the claimant: Voluntarily left employment: Without good cause, To accept better employment, or To enter a training program approved by the Secretary; Has been discharged by the employer for gross misconduct as defined in the Unemployment Insurance Law; Was employed by the employing unit on a continuous part-time basis as of the date of the claimant’s initial claim for benefits; or Was employed in a work release program as set forth in the Unemployment Insurance Law, if the separation was caused by the claimant's release from prison. Continuous Part-Time Basis. For the purposes of this regulation, employment is on a continuous part-time basis under Labor and Employment Article, Title 8, Subtitle 6, Annotated Code of Maryland if: The claimant was not employed by the employing unit on a full-time basis during the base period; The claimant continued to be employed by the employing unit on a part-time basis as of the date of the initial claim for benefits; and The employing unit did not cause the claimant’s part-time working hours to be reduced. When Charged. Benefit payments shall be charged to an employer's earned-rate record for the calendar quarter during which the benefits are paid. A notice of benefit payments charged to the contributor's earned-rate record shall be sent to the contributor at the end of each calendar quarter. Benefit Overpayment Credit. When an overpayment of benefits is established, the overpayment shall be credited to the contributor's earned-rate record in the calendar quarter in which the overpayment is established. Reimburser. A reimburser who is a base period employer shall reimburse the Unemployment Insurance Trust Fund for all regular and work-sharing benefit payments, the appropriate share of extended benefit payments, and dependents' allowance. A notice of benefit payments that must be reimbursed (Statement of Reimbursable Benefits) shall be sent to the reimburser at the end of each calendar quarter. Allocation. Reimbursers and Contributors. When not all of the claimant's base period employers are reimbursers, benefits paid to a claimant shall first be allocated to each reimburser in accordance with the Unemployment Insurance Law. The remainder of the claimant's benefit payments shall be charged to the earned-rate record of those base period employers who are contributors in the same ratio that each employer paid the claimant's total base period wages. When calculating the allocation, the percentage of the charge to each base period employer shall be rounded off to the nearest whole number. Contributors. When all the claimant's base period employers are contributors, benefits paid to a claimant shall be allocated to each contributor in accordance with the Unemployment Insurance Law. Reimbursers. When all the claimant's base period employers are reimbursers, benefits paid to a claimant shall be prorated to each reimburser in accordance with the Unemployment Insurance Law. Charging of Out-of-State Benefit Payments. Except as provided in §A(2) of this regulation, when the State reimburses another state for benefits paid by that other state based on Maryland wages, the earned-rate record of each contributor shall be charged, and each reimburser shall be charged in the same ratio that each employer paid the claimant's total Maryland wages. Review. An employer who disputes the charging determination may seek review of the determination pursuant to Labor and Employment Article, §8-604, Annotated Code of Maryland. Responsibility of Employing Unit. An employing unit shall record the Social Security number of each of its employees. If an employee does not have a Social Security number, the employing unit shall require the employee to execute the proper application form to acquire a Social Security number within 5 days of the first day of employment. Employment Records. An employing unit shall keep employment records safe and readily accessible at the place of business of the employing unit. The records shall be retained and preserved for a period of 5 years from the last day of the calendar quarter to which the records relate. An employing unit that discontinues business shall keep employment records safe and readily accessible. The records shall be retained and preserved for a period of 5 years from the last day of the calendar quarter to which the records relate. Employment records include but are not limited to wage records, payroll registers, check registers, cash disbursements journals, cancelled checks, federal income tax returns (Schedule 1040C for individual proprietors), forms 1096 and 1099, and general ledgers. Employment records shall be made available to the Department for inspection and copying. Prior notice to the employing unit is not required. Specific Contents of Wage Records. An employing unit shall include in its wage records: The dates of each pay period; All of the wages paid to each worker for each pay period and the total amount of wages paid for employment in the pay period, showing separately the amount of wages paid: In cash; and In any medium other than cash; The method by which wages are computed; Hire date, separation date, and reason for separation of each worker; Name, address, and Social Security number of each worker; and With respect to individuals who work less than full-time: The wage rate; The number of hours worked each day; Wages earned by calendar week; Whether the individual worked less than full-time during the week; and Whether the individual worked all available hours. Amount and Adjustment of Collateral. Nonprofit organizations that elect to make payments instead of contributions shall file collateral approved by the Secretary. The Secretary shall review the sufficiency of the collateral annually based on the previous year's taxable wages or on any other basis the Secretary deems appropriate. If the amount of existing collateral is less than the employer's average annual benefit costs for the preceding 2 years, the amount of the collateral shall be increased to equal the average annual benefit costs. The amount of the collateral may not exceed the maximum State tax rate multiplied by that employer's taxable payroll for the prior year. When the collateral is increased, the adjusted collateral shall be filed within 30 days of the Secretary's demand. Collateral shall be posted with the Secretary in a form acceptable to the Secretary, which may include one or more of the following forms: A corporation bond issued by a company licensed to issue surety-type bonds; Cash deposit; Treasury notes or other evidence of federal indebtedness; Bonds or other evidence of indebtedness insured by the State that bind the full faith and credit of the State; or Irrevocable and unconditional letters of credit. Two or more reimbursers may maintain employment records and report to the Secretary as a group, provided the: Reimbursers are engaged in essentially the same industry, occupation, or activity; and Secretary finds that the risk to the Unemployment Insurance Fund represented by each of the members of the group is approximately the same as the risk represented by other members of the group. An approved group of reimbursers shall maintain employment records as a group and report required information to the Secretary in one report covering the entire group. The group report shall designate which reimburser in the group received the services and paid the wages for each of the employees listed. The Secretary shall approve the method of designating the wages. Contributions and administrative fees are due and shall be paid on or before the last day of the month immediately following each calendar quarter. Contributions and administrative fees from an employer whose status is changed by cessation of business, or appointment of a receiver, trustee, trustee in bankruptcy, or other fiduciary are due and shall be paid within 5 days of the change in status. For payment of administrative fees, a fractional part of a cent: That is less than one-half cent shall be disregarded; and That is one-half cent or more shall be increased to 1 cent. Failure to pay the required contributions in the prescribed manner shall result in the imposition of interest charges as provided in Labor and Employment Article, §8-628, Annotated Code of Maryland. Failure to pay the required administrative fees in the prescribed manner shall result in the imposition of interest charges as provided in Labor and Employment Article §8-628, Annotated Code of Maryland, for the nonpayment of contributions. The Secretary shall pay interest collected on administrative fees into the Special Administrative Expense Fund established under Labor and Employment Article, §8-419, Annotated Code of Maryland. Collection by Assessment. If an employing unit fails to pay administrative fees or related interest due based on information the employing unit provided in a contribution report, the Secretary: May assess the amount of the payment or interest due as prescribed under Labor and Employment Article, §8-629, Annotated Code of Maryland, for the nonpayment of contributions; and Notwithstanding §(2) of this regulation, may make an additional assessment if the contribution report is later determined to be incorrect. An assessment under this regulation is final unless: An employing unit requests a review determination under Labor and Employment Article, §8-604, Annotated Code of Maryland; or On its own motion, the Board of Appeals grants a hearing to consider whether the amount should be reduced. Except in the case of a fraudulent contribution report or the failure to file a contribution report, written notice of an assessment under this regulation shall be sent to an employing unit within 3 years of the last day of the period at issue in the notice. If an employing unit fails to pay an assessment under this regulation, the Secretary may file a notice of lien in the circuit court of the county where the employing unit’s principal place of business is located, or a notice of lien in any other county that includes the information set forth in Labor and Employment Article, §8-629, Annotated Code of Maryland. If, after an assessment, an employing unit fails to pay administrative fees or interest, the Secretary may collect the amount due by filing a civil action or pursuing any other available legal means. Payments by reimbursers are due and shall be paid within 30 days from the date set forth on the Statement of Reimburseable Benefits. Failure to make the required payment in the prescribed manner shall result in the imposition of interest charges as set forth in the Unemployment Insurance Law. A reimburser who fails to reimburse the Unemployment Insurance Fund for benefits paid: May lose its reimburser status and become a contributor as of the next January 1st for a period of 2 years; and Shall forfeit its collateral to the extent of the unpaid benefits. A contributor shall file with the Secretary, on or before the contribution payment date, a complete and correct contribution report containing: Total quarterly wages paid by the contributor; Taxable quarterly wages paid by the contributor; Total wages in excess of $8,500 per year; Computation of contributions and administrative fees due; The employing unit's Maryland unemployment insurance account number; The employing unit's tax rate applicable to the quarter filed; The number of employees performing services for the employing unit in each month of the quarter; If applicable, penalties or interest as set forth in the Unemployment Insurance Law; The signature of the employing unit or authorized representative; and Other information the Secretary may require. Contribution reports shall be filed by an employing unit that operates its business during a calendar quarter, even though no wages were paid during that quarter. Exceptions to Filing Date. An employing unit that transfers its business to another employer shall file a contribution report within 15 days from the date of discontinuation or transfer. An employing unit who otherwise discontinues its business or whose status is changed by appointment of a receiver, trustee, trustee in bankruptcy, or other fiduciary, shall file a contribution report within 5 days from the date of this change in status. An employing unit shall file with the Secretary on or before the contribution payment date, a complete and correct employment report containing: Name and Social Security number of each employee; The employing unit's Maryland unemployment insurance account number; Total quarterly wages paid to each employee; Total quarterly wages paid by the employing unit; and Other information the Secretary may require. Exceptions to Filing Date. An employing unit that transfers its business to another employer shall file an employment report within 15 days from the date of the discontinuation or transfer. An employing unit that otherwise discontinues its business or whose status is changed by appointment of a receiver, trustee, trustee in bankruptcy, or other fiduciary, shall file an employment report within 5 days from the date of this change in status. An employing unit that anticipates that it will not report wages for a 12-month period shall notify the Secretary to close its account. An employing unit that has reported no wages for the 12-month period from July 1 through June 30 shall be presumed to no longer be an employing unit and its account shall be closed. Reporting. Wages to be reported on the quarterly employment report include: All remuneration paid to corporate officers for services rendered to the corporation. Corporation includes “subchapter S” corporations. Wages include draws, profit distributions, and dividends paid to corporate officers as remuneration for services rendered. The form in which remuneration for services is designated and the manner of payment is not determinative of what constitutes wages under the Unemployment Insurance Law. The value of meals provided to employees unless meals are provided on the employing unit's premises and for the convenience of the employing unit. The value of lodging provided to employees unless the lodging is provided on the employing unit's premises, for the employing unit's convenience, and as a condition of employment. The amount of tips paid to an employee by a customer of the employing unit and reported by the employee to the employing unit as required by the applicable provisions of the Internal Revenue Code. The value of payments, other than those received under a workers' compensation law, provided by a third-party insurer on account of sickness or accident disability, or medical or hospitalization expenses in connection with sickness or accident disability if the employer paid insurance premiums upon which the payments were made. Wages to be reported on the quarterly employment report do not include payments made by an employing unit: Into a deferred compensation plan that are not deducted from an employee's salary if the employee may withdraw money from the plan only on retirement or separation from employment; To, or on behalf of, former employees on active duty with the armed forces of the United States, if those payments are designed to supplement amounts received by them from the federal government. Time for Reporting. Wages shall be reported on the quarterly employment report when actually or constructively paid. Wages are constructively paid when they are credited to the account of an employee or set apart for an employee so that the employee may draw upon the wages without substantial limitation or restriction. Separation notices shall be requested and submitted in accordance with the Unemployment Insurance Law and COMAR 09.32.02.05. If an employer offers employment to an unemployed individual and the individual refuses the offer, the employer shall notify the Secretary in writing within 15 days after the refusal in order for the refusal to be considered in determining whether the individual is disqualified for benefits. Penalties. Contribution Reports. An employing unit that fails to file a timely contribution report in the prescribed manner shall pay a penalty of $35. Employment Reports. An employing unit that fails to file a timely employment report in the prescribed manner shall pay a penalty of $35. Separation Reports. An employing unit that fails to file a timely separation report in the prescribed manner upon the Secretary's request shall pay a penalty of $15. Earnings Reports. An employing unit that fails to file a timely earnings report in the prescribed manner upon the Secretary's request shall pay a penalty of $15. An employing unit that submits a check or other negotiable instrument that is returned for insufficient funds shall pay a penalty of $25. Interest on Past Due Contributions and Administrative Fees. An employing unit that fails to file a timely contribution report shall pay interest on contributions and administrative fees then due and unpaid at a rate in accordance with Regulation .09 of this chapter until the contribution report and payment is received. The Secretary may waive any penalties or interest for cause, upon the employer's request or upon the Secretary's review of the penalty or interest assessed. A payment made by an employing unit shall be applied in the following order to an amount due and owing at the time of payment: To any penalty imposed; To any interest due and owing on administrative fees; To any interest due and owing on contributions and reimbursement payments; To administrative fees; and To contributions or reimbursement payments. Application for refunds and adjustments of contributions, reimbursement payments, or related interest shall be processed in accordance with the Unemployment Insurance Law. Application for refunds and adjustments of administrative fees or related interest shall be processed in the manner set forth in the Unemployment Insurance Law for refunds and adjustments of contributions, except that the Secretary shall refund any such amounts erroneously collected from the Special Administrative Expense Fund. Refunds. Automatic Refund. In each quarter when the Secretary determines that a refund due an employing unit is less than $100, the Secretary shall automatically issue a refund to that employing unit. In each quarter when the Secretary determines that a refund due an employing unit is $100 or over, the refund may be applied to the employing unit's future indebtedness or refunded at the employing unit's request. Employee. A person performing services is presumed to be an employee, regardless of whether a common law master and servant relationship exists, unless specifically exempted under the Unemployment Insurance Law or these regulations. Independent Contractor. To overcome the employee presumption, an employing unit shall establish that the person performing services is an independent contractor. The Secretary shall determine that an employing unit has established that the person performing services is an independent contractor when the conditions in §B(3)(a)—(c) of this regulation are clearly shown. Circumstances evidencing the conditions mentioned in §B(2) of this regulation include, but are not limited to, the items listed after each condition: The person has been and will continue to be free from the employing unit's control or direction: The employing unit does not require the person to comply with detailed instructions about when, where, and how the person is to work, The employing unit does not train the person to perform the service in a particular manner or using a particular method determined by the employing unit, The employing unit does not establish set hours of work for the person performing the services, The employing unit does not establish a schedule or routine for the person performing the service, The employing unit may not discharge the person for failure to obey the employing unit's specific instructions on how the service is to be performed; The service is outside the usual course of business of the employing unit: The person performs the work off the employing unit's premises, The person performs work that is not integrated into the employing unit's operation, The service performed is unrelated to the employing unit's business; The person performing the service is customarily engaged in an independently established business: Maintains a business listing in the telephone directory, Has his or her own place of business, Has a financial investment in a related business and can incur a loss in the performance of the service, Has his or her own equipment needed to perform the service, Determines the price of the service to be performed, Employs others to perform the service, Carries his or her own liability or workers' compensation insurance, or both, Performs the service for more than one unrelated employer at the same time, Sets his or her own hours, Is paid by the job. Sole Proprietorships. Except as otherwise provided, a person performing services for wages for a sole proprietorship is engaged in covered employment. The following persons employed by a sole proprietor are not engaged in covered employment: The sole proprietor; A spouse of the sole proprietor; Children of the sole proprietor under the age of 21; and Parents of the sole proprietor. Partnerships. A partner in a partnership is not engaged in covered employment. If a partnership consists exclusively of spouses, then their children under 21 years old employed by the partnership are not engaged in covered employment. Corporations with Revoked Charters. 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. Persons determined by the Secretary to be sole proprietors or partners are not engaged in covered employment. Any other employee of the entity is engaged in covered employment. Limited Liability Companies. 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. 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: The single member; The spouse of the member; Children younger than 21 years old of the member; and Parents of the member. 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: The members; and Children younger than 21 years old of the member, if the members of the limited liability company consist exclusively of spouses. The illustrations in this regulation provide guidance for the home health care industry in the application of Labor and Employment Article, §8-205, Annotated Code of Maryland and do not apply to any other State or federal labor law. Illustration 1. Extra Loving Care (“ELC”) is a Nursing Referral Service Agency (“NRSA”) licensed by the Maryland Department of Health (“MDH”) pursuant to COMAR 10.07.07. It has a registry of certified nursing assistants (“CNAs”), geriatric nursing assistants (“GNAs”) and licensed practical nurses (“LPNs”). The company verifies that all workers do not have a criminal background and are properly licensed before placing them on the registry. Before placing a worker on its registry, ELC requires that the worker attend mandatory training and receive a list of rules and policies to follow in clients’ homes. ELC assigns available workers on its registry to clients. ELC sets the workers’ schedules and requires documentation of the work performed, such as time sheets or notes. ELC determines the workers’ rates of pay and the workers cannot negotiate pay rates directly with ELC’s clients. Clients pay ELC and ELC deducts its fee and pays the workers. If a client is dissatisfied with a worker, the client contacts ELC directly. Each worker must sign an agreement with ELC that restricts his or her ability to enter into employment agreements with ELC’s clients, past or present. The workers on ELC’s registry are employees of ELC. Illustration 2. Loving Care (“LC”) is a Nursing Referral Service Agency (“NRSA”) licensed by the Maryland Department of Health (“MDH”) pursuant to COMAR 10.07.07. It has a registry of certified nursing assistants (“CNAs”), geriatric nursing assistants (“GNAs”) and licensed practical nurses (“LPNs”). The company verifies that all workers do not have a criminal background and are properly licensed before placing them on the registry. LC provides its clients with the names and contact information for available workers on its registry. Once contacted, a worker may then set and adjust their work hours and may negotiate their rates of pay directly with the client, unless otherwise established by a third party payor. The workers on LC’s registry, in conjunction with the client, determine the client’s needs and use their own tools and equipment to carry out their services. Workers are not required to report hours to LC, although some workers maintain notes for their own records. Workers on LC’s registry carry their own workers’ compensation insurance and/or professional liability insurance coverage. Workers have their own independent businesses that are demonstrated by Federal Employer Identification Numbers (“FEINs”), tax returns, business cards, invoices, advertising and/or other indicia of operating an independently established business. Workers are responsible for maintaining necessary licensures and certifications, however, LC performs periodic credential checks to confirm that workers’ licenses and certifications are current. The workers on LC’s registry invoice clients directly and are paid directly by the client. The workers are then responsible for remitting any referral fee directly to LC. LC only deviates from this payment system in limited circumstances when an alternative method of payment is necessitated by a third party payor or other legal arrangement established for the benefit of the care recipient. If dissatisfied with a worker, the client informs the worker directly. The workers are not bound by a non-solicitation provision. The workers on LC’s registry are independent contractors. A person is not engaged in covered employment when the person is employed by a church or convention or association of churches. A person is not engaged in covered employment when the person is employed by an organization which is: Operated, supervised, controlled, or principally supported by a church or convention or association of churches; and Operated primarily for religious purposes. Circumstances that may support the determination that the organization is operated primarily for religious purposes include, but are not limited to: Interrelationship between affiliation with the church and institutional autonomy, including: Composition of governing board, Degree of supervision of church, Sources of financial support; Extent of religious indoctrination, including: Stated purpose, Extent of encouragement of spiritual development, Composition of student body, Extent of religious exercises, Extent of prayer in the classroom, Extent of religion or theology classes, Degree of intellectual freedom in nontheology classes, Composition of faculty, Degree of academic freedom. Localized Service. A person is engaged in covered employment in the State when the person's service is localized within the State. Service is localized when it is performed: Entirely within the State. Both within and outside the State, but the service performed outside the State is incidental to the service performed within the State. Service is incidental if it is temporary or transitory in nature, or consists of isolated transactions. In determining whether the service of a worker is incidental or transitory, the Secretary shall consider the: Intention of the employing unit and employee as to whether the service is an isolated transaction or a regular part of the employee's work; Intention as to whether the employee will return to the State upon completion of the work outside the State; and Length of service with the employing unit within the State as compared to the length of service outside the State. Base of Operations. A person is engaged in covered employment in this State when the person's service is not localized in any state, but some services are performed in the State and the person's base of operations is in the State. The base of operations is the place or fixed center, of more or less permanent nature, from which the employee starts work and to which he or she customarily returns in order to receive instructions from the employing unit or communications from customers or other persons, to replenish stocks and materials, to repair equipment, or to perform other functions necessary to the exercise of the employee's trade or profession. The base of operations may be the employee's business office, or the employment contract may specify a particular place at which the employee is to receive directions and instructions. Place From Which Service is Directed or Controlled. A person is engaged in covered employment in this State when the person's service is not localized in any state and the person has no base of operations, or if the base of operations is in a state in which the employee performs no service, or if the base of operations moves from state to state, but the person's service is directed or controlled from this State. The place from which a person's service is directed or controlled is the place at which the basic authority exists and from which the general control emanates. Place of Residence. When application of §§A—D of this regulation does not establish where the person's employment is covered, a person is engaged in covered employment in this State if the person's residence is in this State, provided some of the service is performed in this State. Reciprocal Coverage Agreement. When application of §§A—E of this regulation does not establish where the person's employment is covered, a person is engaged in covered employment in this State if the employing unit elects to cover in this State all the person's service either through an election of coverage or under a reciprocal coverage agreement. Under the reciprocal coverage agreement the service may be covered in this State if: Some part of the person's service is performed in this State; The person's residence is in this State; or The employer maintains a place of business in this State. Common ownership, management, or control exists between the successor employer and the predecessor employer when any person serves in any of the following positions in both the predecessor and successor employer: Sole proprietor, which includes spouse, children, and parents of a sole proprietor; Partner of a partnership; Member of a limited liability company; Chief Executive Officer; Chief Financial Officer; Any corporate officer; or Any shareholder owning, directly or indirectly, more than 50 percent of a corporation's stock. An employer acquiring the assets, business, organization, or trade of a predecessor employer is not a successor employer for the purposes of attributing or assigning the rate of contribution if the acquiring employer: Has no common ownership, management, or control with the predecessor; Acquires less than 50 percent of the payrolls or employees of the predecessor; and Acquires less than 50 percent of the assets, business, organization, and trade of the predecessor. In acquisitions not involving common ownership, management, or control, the Secretary shall determine the proportionate value of assets, business, organization, and trade acquired by the successor based on a comparison to the total amount of assets, business, organization, and trade of the predecessor that existed on December 31 or, if the predecessor reported its financial performance based on a fiscal year (instead of calendar year), a comparison to the total amount of assets, business, organization, and trade of the predecessor that existed on the last day of the predecessor’s fiscal year immediately preceding the acquisition date. In acquisitions not involving common ownership, management, or control, the Secretary shall determine the proportionate share of the payrolls or number of employees acquired by the successor based on a comparison to the total payrolls or number of employees working for the predecessor on December 31 or, if the predecessor reported its financial performance based on a fiscal year (instead of calendar year), a comparison to the total payrolls or number of employees working for the predecessor on the last day of the predecessor’s fiscal year immediately preceding the acquisition date. In acquisitions not involving common ownership, management, or control, and subject to the limitation provided in §B of this regulation, if a person acquires a part of a business, trade, or organization and the employer is classified as a successor employer, the earned rate record of the acquired business, trade, or organization is transferred to the successor employer according to the percent of the payrolls or assets acquired. An employing unit that transfers all or part of its operations from another state to this State may be classified as a successor employer and assigned an earned rate in accordance with the Unemployment Insurance Law, provided the employing unit makes application to the Secretary for successor status effective upon the date of transfer. The transfer of a business from another state to this State within the meaning of the Unemployment Insurance Law occurs only when an operation maintained by an employing unit in another state has been closed, discontinued, or curtailed, in whole or in part, and that same operation is transferred into Maryland. The opening of new branches, new offices, or new retail outlets in this State does not constitute a transfer. In order to invoke the provisions of the Unemployment Insurance Law relating to an employer who transfers operations from another state in which the employer has had at least 3 years experience immediately preceding the transfer to this State, the employer shall submit the following on forms prescribed by the Secretary: Within 120 days of the transfer, written notice specifying the nature of the operations transferred and the state in which they were previously performed. Within 60 days from the date of this notice, a certification from the unemployment insurance agency of the state from which the employer's operations were transferred certifying all information required by the Unemployment Insurance Law for calculating an earned rate in this State, and any other additional information required by the Secretary. The certificate shall include information identifying wages paid in the other state together with the employer's annual payrolls and benefit charges as defined in the Unemployment Insurance Law, for the 3 years immediately preceding this computation date as defined in the Unemployment Insurance Law. Upon the request of the Secretary, a certification from the other state containing all the information that the Secretary requires relating to benefit charges for the 12 consecutive month period preceding each subsequent computation date on the basis of wages paid in the other state. When this information is required, the employer shall furnish it not later than 60 days after the Secretary's request. If the employer meets the conditions of this regulation, wages, remuneration, contributions, and benefits resulting in earned rate charges in connection with the transferred operations shall be deemed to have been paid in this State for the purpose of the Unemployment Insurance Law. Remuneration for services paid to employees in another state may not be considered wages with respect to any fiscal year for the purposes of this regulation or the provisions of the Unemployment Insurance Law unless the contributions due on the remuneration have been paid before the computation date for contribution rates in this State. Definitions. 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. 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. Payment through Common Paymaster. 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 and administrative fees. The common paymaster shall be responsible for filing the contribution report and the employment report. 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. 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. If the common paymaster fails to remit contributions and administrative fees 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 and administrative fees. When a claimant is disqualified from receiving benefits for reasons determined to constitute aggravated misconduct under the Unemployment Insurance Law, wages from the base period employer against whom the aggravated misconduct was committed shall be deleted as set forth in §B of this regulation. Wages shall be deleted for: Only the employing unit from which the claimant was discharged or suspended for reasons which are determined to constitute aggravated misconduct in connection with the work; and Any benefit years beginning with and following the disqualification for discharge or suspension for reasons which constitute aggravated misconduct in connection with the work, except that if the benefit year has been established before the date of the discharge or suspension, the deletion takes effect beginning with the week of the disqualification. A refund may not be made on any taxes paid on wages which are deleted as a result of the imposition of a disqualification for aggravated misconduct in connection with the work. Definition and Scope. Definition. “Unemployment insurance tax preparer” means a person who files quarterly unemployment insurance contribution reports or employment reports on behalf of employing units for compensation. Scope. Sections B and C of this regulation apply to unemployment insurance tax preparers who file on behalf of 100 or more employing units. Method of Filing Contribution Reports and Employment Reports. An unemployment insurance tax preparer shall file the information required in Regulations .11 and .12 of this chapter by mail or electronic means. A contribution report or an employment report is deemed returned when it is either received by the Division of Unemployment Insurance or postmarked by the United States Post Office. Method of Payment. An unemployment insurance tax preparer shall remit unemployment insurance contributions and administrative fees on behalf of employing units in one lump sum payment that covers in full the total contribution payments and administrative fees due for all the employing units that the preparer represents. Penalty and Interest. An employing unit whose unemployment insurance tax preparer fails to file the contribution reports, employment reports, or pay contributions or administrative fees in the prescribed manner is subject to the penalties and interest set forth in Regulations .09 and .16 of this chapter and the Unemployment Insurance Law. Professional Employer Organization. “Professional employer organization” means an employing unit which places all or part of a client company's workers on its payroll or payrolls and, by written agreement, assigns or leases the workers to the client company. “Professional employer organization” does not mean a temporary help firm within the meaning of this subtitle. Obligations of a Professional Employer Organization. A professional employer organization is subject to all of the rights and obligations of employing units under the Unemployment Insurance Law. Acquisitions. Upon the acquisition of all or part of a client company's workers: A professional employer organization is initially classified as a successor employer for purposes of assigning a contribution rate, assessing administrative fees and tax liability, and transferring the taxable wage base of the workers who were placed on the professional employer organization's payroll; and The client company is initially classified as a predecessor employer. A subsequent acquisition or transfer, by sale or otherwise, of all or part of a professional employer organization's assets, business, organization, or trade is treated in accordance with the Unemployment Insurance Law. Notification. A professional employer organization shall notify the Secretary in writing when the company places all or part of a client company's workers on its payroll. Notification shall be given within 30 days of placing the workers on the payroll and shall be provided in the form and manner required by the Secretary. Notification shall include, at a minimum, the following information: Name, address, and phone number of the professional employer organization; Name, address, and phone number of the client company; Date the professional employer organization acquired the client company's workers; and Total number of workers acquired from the client company. Annual Report. On or before December 31 of each year, a professional employer organization shall file an annual report of the company's clients with the Secretary. The annual report shall be in writing and shall include: Name, address, and phone number of the professional employer organization; and Names and addresses of client companies to whom the professional employer organization leases or assigns workers. Labor and Employment Article, §§8-101, 8-206, 8-305, 8-421, 8-601, 8-602, 8-605.1, 8-613, 8-614, 8-625, 8-626, 8-1002.1, and 8-1005, Annotated Code of Maryland Effective date: February 1, 1973 Regulation .02A amended effective March 1, 1982 (9:4 Md. R. 330) Regulation .04B amended effective July 28, 1978 (5:15 Md. R. 1187) Regulation .05A, D, F, G, H amended effective September 14, 1981 (8:18 Md. R. 1477) Regulation .05H amended effective March 30, 1977 (4:7 Md. R. 577); December 30, 1977 (4:27 Md. R. 2104) Regulation .08B amended effective September 14, 1981 (8:18 Md. R. 1477) Regulation .09 amended effective December 10, 1975 (2:28 Md. R. 1666) (Transferred from Department of Human Resources to Department of Employment and Training, effective October 1, 1983; recodified from COMAR 07.04.01 to 24.02.01) Chapter, Reporting Requirements of Employing Units, repealed effective June 24, 1991 (18:12 Md. R. 1340) Regulations .01—.23, Obligations of Employers, adopted effective June 24, 1991 (18:12 Md. R. 1340) Regulation .02B amended effective October 24, 1994 (21:21 Md. R. 1815) Regulation .06 amended effective January 2, 1994 (20:26 Md. R. 2029) Regulation .09C amended effective November 23, 1992 (19:23 Md. R. 2042) Regulation .11A amended effective November 23, 1992 (19:23 Md. R. 2042); January 2, 1994 (20:26 Md. R. 2029) Regulation .12A amended effective January 2, 1994 (20:26 Md. R. 2029) Regulation .14 amended effective October 24, 1994 (21:21 Md. R. 1815) Regulation .14A amended effective November 23, 1992 (19:23 Md. R. 2042) Regulation .15-1 adopted effective June 8, 1992 (19:11 Md. R. 1017) Regulation .16A and B amended effective November 23, 1992 (19:23 Md. R. 2042) Regulation .18-1 adopted effective October 24, 1994 (21:21 Md. R. 1815) Regulation .22B amended effective November 23, 1992 (19:23 Md. R. 2042) Regulation .24 adopted effective January 2, 1994 (20:26 Md. R. 2029) Regulation .25 adopted effective January 2, 1994 (20:26 Md. R. 2029) Chapter recodified from COMAR 24.02.01 to COMAR 09.32.01, May 1996 Regulation .05A amended effective March 11, 2019 (46:5 Md. R. 306) Regulation .06C amended effective May 4, 1998 (25:9 Md. R. 679) Regulation .12C amended effective May 4, 1998 (25:9 Md. R. 679) Regulation .13B amended effective May 4, 1998 (25:9 Md. R. 679) Regulation .14A amended effective January 1, 2007 (33:26 Md. R. 1996) Regulation .18-1 amended and recodified to Regulation .18-2, and new Regulation .18-1 adopted effective May 4, 1998 (25:9 Md. R. 679) Regulation .18-1 repealed effective January 7, 2013 (39:26 Md. R. 1664) Regulation .18-2D amended effective January 1, 2007 (33:26 Md. R. 1996) Regulation .18-3 adopted effective January 7, 2013 (39:26 Md. R. 1664) Regulation .21 repealed and new Regulation .21 adopted effective March 27, 2006 (33:6 Md. R. 578) Regulation .21 amended effective April 24, 2017 (44:8 Md. R. 402) Regulation .26 adopted effective May 4, 1998 (25:9 Md. R. 679) Regulation .26 repealed and new Regulation .26 adopted effective March 27, 2006 (33:6 Md. R. 578) Chapter revised effective December 11, 2025 (52:24 Md. R. 1197)