Administrative Rules of Montana
Department 24 - LABOR AND INDUSTRY
Chapter 24.11 - UNEMPLOYMENT INSURANCE DIVISION
Subchapter 24.11.22 - Types of Accounts and Rate Setting
Rule 24.11.2205 - EXPERIENCE-RATING RECORD TRANSFER
Current through Register Vol. 6, March 22, 2024
(1) When a new business entity is formed and it acquires assets, employees, business, organization, or trade from another employer, the new business entity is classified as a successor employer. The procedures for transferring an employer's experience-rating record are described in 39-51-1219, MCA. For purposes of this rule, predecessor employer and successor employer are used in the same manner and have the same meaning as those terms have in 39-51-1219, MCA.
(2) Except as otherwise provided in this rule, an application for transferring the experience-rating record is automatically sent to the successor employer if, within 90 days of the change of ownership, the department discovers that an account involves a predecessor employer.
(3) An experience-rating record is automatically transferred from the predecessor employer to the successor employer if both employers are under substantially common ownership, management, or control. An experience-rating record includes the amount of contributions paid, benefits charged, and taxable wages reported.
(4) A request for transfer of the experience-rating record may be approved if:
(5) In the case of partial transfer of the trade or business of an employing entity (referred to as the predecessor employer) to another entity (referred to as the successor), the portion of the experience-rating record transferred from the predecessor employer to the successor must be determined in the same ratio as:
(6) The penalty assessed in 39-51-1219, MCA, is based on the taxable payroll of the successor following the transfer of the experience-rating record.
(7) A transfer of the experience-rating record between a professional employer organization and its client is not allowed unless the client and the professional employer organization have common ownership, management, or control.
AUTH: 39-8-201, 39-51-301, 39-51-302, MCA IMP: 39-8-201, 39-51-1219, MCA