Louisiana Administrative Code
Title 40 - LABOR AND EMPLOYMENT
Part IV - Employment Security
Subpart 1 - Board of Review
Chapter 3 - Employment Security Law
Section IV-347 - Transfer of Experience-Rating Record to Successor Where Segregable and Identifiable Part or Portion of the Business Is Acquired
Universal Citation: LA Admin Code IV-347
Current through Register Vol. 50, No. 9, September 20, 2024
A. The transfer of experience-rating records to employers who acquired a segregable and identifiable portion of a predecessor's business within the meaning of R.S. 23:1539 shall be affected on the following basis.
1. Where the business or unit acquired
can be completely segregated and identified during the entire period of its
existence, the total payroll and experience-rating record attributable thereto
shall be transferred to the successor. In this event the only payroll and
experience rating records subject to transfer to the successor are those which
are actually segregated and identified.
2.
a. If
the business or unit acquired cannot be segregated and identified during the
entire period of its existence, the predecessor and/or the partial successor
will provide to the administrator the percentage of the operation that was
transferred to the partial successor. The percentage must be agreed upon by
both the predecessor and the partial successor. This percentage may be
determined by dividing the taxable payroll attributed to the portion acquired
for three complete fiscal years prior to the acquisition or the number of years
the predecessor was in operation prior to acquisition up to three years, by the
total payroll attributed to the predecessor operation for the same period of
time.
b. The percentage will be
applied to the predecessor's total taxable payroll and reserve to determine the
taxable payroll and reserve that will be transferred to the partial
successor.
c. The names and Social
Security numbers of the individuals transferred to the successor, including any
employees terminated at the time of the acquisition, must be provided to the
administrator and agreed upon by both the predecessor and partial
successor.
d. If any of the above
agreements are not received in writing within 90 days from the date of the
partial acquisition, the requirements for partial transfer of payroll records
to the partial successor have not been met, and none will be
transferred.
3.
Determining the Tax Rates for Partial Successors When the Information Is
Received on a Timely Basis, within 90 Days from the Date of Acquisition. If the
successor was not an employer at the time of acquisition, his rate for the
balance of the then current contribution year shall be the same as that
assigned to his predecessor for said year. If the successor was an employer
prior to the date of acquisition, his rate of contribution for the period from
such date to the end of the then current contribution year shall be the same as
his rate with respect to the period immediately preceding the date of
acquisition.
4. Determining the Tax
Rates for Partial Successors When the Information Has Not Been Provided on a
Timely Basis within 90 Days from Date of Acquisition
a. If the partial successor was not a subject
employer at the time of acquisition, his rate for the balance of the then
current contribution year shall be the new employer rate or the predecessor
rate, whichever is higher.
b. If
the partial successor was an employer prior to date of acquisition, his rate of
contribution for the period from such date to the end of the then current
contribution year shall be the same as his rate with respect to the period
immediately preceding the date of acquisition.
5. If an employer has more than one partial
succession in a calendar year, the aforementioned procedure will be applied in
each case.
6. Partial successors
who have not been assigned a tax rate prior to acquisition will be assigned the
new employer tax rate or the predecessor's tax rate, whichever is higher,
during the 90-day period subsequent to the partial acquisition. Once the proper
tax rate is determined, however, it will be applied retroactively.
7. The agency may perform an audit to
determine the percentage of taxable payroll and reserve that will be
transferred to the partial successor if the administrator finds it necessary to
do so.
8. In determining whether or
not the unit, or portion of the business acquired by the successor, is
segregable and identifiable, each case should be separately considered and
analyzed. If the payroll and experience-rating records of the unit, or portion
of the business acquired, can be broken down and segregated to permit the
proper crediting of wages, contribution of payments and the charging of
benefits, as provided in this regulation, the requirements of the law shall be
considered as having been fully met. The employer will be required to furnish
such additional analysis of his payroll records as may be required in order
that proper segregation may be made.
AUTHORITY NOTE: Promulgated in accordance with R.S. 23:1471-1713.
Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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