Tenn. Code Ann. § 67-4-1709: Liability for tax by certain individuals - Employer's option to remit

(a) Each individual licensed or registered to engage in a vocation, profession, business, or occupation listed in § 67-4-1702 shall be liable for the tax. Any employer, including any governmental entity, may choose to remit the tax imposed by this part on behalf of persons subject to the tax who are employed by such employer.

(b) State agencies, including without limitation the University of Tennessee and the state university and community college system, are authorized to pay the privilege tax levied in this part on behalf of full-time state employees who are subject to the tax and who use the certification in their job duties, if an appropriation for such purpose is made in the general appropriations act. The payment by a state department or agency is subject to approval by the department or agency head and to this part.