Who Is Liable For Unemployment Insurance Premiums?

As an employer, you become liable or "covered" under Tennessee Employment Security Law if you meet any one of the following conditions based on the type and nature of your business: Conditions Exclusive to Regular Business Employers: You have a total payroll of $1,500.00 or more in any calendar quarter of the current or preceding calendar year; or You employ one or more persons during some part of a day in each of 20 weeks in the current or preceding calendar year. The weeks do not need to be consecutive, and both full­time and part­time workers are counted. Conditions Exclusive to Agricultural Employers: You pay $20,000 or more in wages in any calendar quarter; or You employ 10 or more persons for some part of a day in each of 20 weeks in the current or preceding calendar year. The weeks do not need to be consecutive, and both full­time and part­time workers are counted. Conditions exclusive to Domestic Employers : You pay as much as $1,000 in cash wages in any calendar quarter in the current or preceding calendar year. Conditions exclusive to Nonprofit Employers : You employ four or more persons for some part of a day in each of 20 weeks in the current or preceding calendar year and you are exempt under Section 501(c)(3) of the Internal Revenue Code. The weeks do not need to be consecutive. Both full­time and part­time workers are counted, and officers of a nonprofit corporation are counted even if such officers do not receive remuneration for services from the nonprofit corporation. Conditions exclusive to Government Employers : The employer is a state or local government unit or political subdivision. General Conditions Under Which Any Employer Will Be Liable For Unemployment Insurance Premiums: You are liable under the Federal Unemployment Tax Act (FUTA) and had at least one employee in Tennessee, regardless of the number of weeks employed; or You are a "successor" to all or part of the business of an employer already covered or you are a "same party(ies) of interest" to all or part of the business of an employer already covered.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

Additional Employment Law for Employees Articles

Search LawInfo's Employment Law for Employees Resources