(A)The transfer
of a portion of a trade or business will result in the transferee becoming a
successor in interest if all of the following requirements are satisfied:
(1)A clearly
segregable and identifiable portion of the transferor's trade or business
located in the state of Ohio is transferred;
(2)Immediately
after the transfer, the transferee employs substantially the same individuals
covered under the Ohio unemployment compensation law who immediately prior to
the transfer were employed in the clearly segregable and identifiable portion
of such trade or business; and
(3)An application
signed by the transferor and the transferee requesting that the transferee be made
a successor in interest is submitted to the director. The application
containing all of the information required in paragraph (C) of this rule shall
be filed with the director within ninety days from the date the director sends
notice to the transferee that the request may qualify for a transfer of
experience. Failure to submit the application within the prescribed time limits
shall result in the automatic denial of the application.
Under this type of transfer, the successor in interest shall
assume from the transferor's account only the employment experience determined,
pursuant to paragraph (D) of this rule, to be attributable to the segregable
and identifiable portion transferred. The director shall revise the
contribution rates of the transferor and transferee to reflect the results of
the successorship.
(B)The
application referred to in paragraph (A) of this rule mustshall be signed by duly authorized representatives of
the transferor and the transferee.
(C)In order for
the department to determine the portion of the payroll and unemployment
experience to be transferred to the transferee and also whether the transferee
is eligible for an experience rate, the application containing the following
information mustshall
be received by the director:
(1)Address and
location, trade name and description of the portion of the business sold;
(2)Date of the
transfer;
(3)Date of the
first employment subject to the Ohio unemployment compensation law for the
transferring portion of the business before it was transferred;
(4)Gross and
taxable payroll totals for individuals covered under the Ohio unemployment
compensation law attributable to the transferred portion for the four completed
calendar quarters immediately preceding the quarter in which the transfer occurred;
and
(5)The names and
social security numbers of the employees transferred and retained by the
transferee furnished in a manner approved by the director.
(D)If the
transfer of experience is approved, the taxable wages, contributions, voluntary
contributions, amounts transferred to the mutualized account under section
4141.24 of the Revised Code, and charges for
benefits paid, that are attributable to the transferor for all periods prior to
the date of transfer, shall be transferred based on the ratio that the taxable
wages attributable to the transferred portion for the four completed calendar
quarters immediately preceding the quarter in which the transfer occurred bears
to the total taxable wages of the predecessor for the same period. Charges for unemployment
compensation benefits paid after the effective date of the transfer, to
individuals who are identified in the application as having been transferred to
the transferee, shall be charged to the account of the transferee.
(E)The transfer
of experience will not be approved unless all of the information required in
paragraph (C) of this rule has been submitted in accordance with the
requirements of this rule and all contributions, interest and forfeitures due
to the department by both the transferor and transferee are paid in full no
later than a date set by the director.
(F)For the
purposes of this rule, a clearly segregable and identifiable portion of the
transferor's business means a portion of the business, such as a division, that
would have been able to operate independently from the trade or business as a
whole prior to the date of the transfer.
(G)The director
shall not approve a transfer of experience or contribution rates of the
transferee or transferor for any contribution period with respect to which the
director has determined contribution rates for the transferee or transferor
pursuant to division (G) of section 4141.24 or section 4141.48 of the Revised
Code.
Effective: 3/28/2019
Five Year Review (FYR) Dates: 1/7/2019 and 03/28/2024
Certification: CERTIFIED ELECTRONICALLY
Date: 03/14/2019
Promulgated Under: 119.03
Statutory Authority: 4141.13
Rule Amplifies: 4141.24, 4141.48
Prior Effective Dates: 01/01/1974, 05/29/1990, 06/01/1994,
03/26/1999, 12/14/1999, 01/15/2001, 01/26/2002, 01/01/2006, 08/14/2008