South Carolina Code of Regulations
Chapter 47 - DEPARTMENT OF EMPLOYMENT AND WORKFORCE
Article 2 - GENERAL REGULATIONS
Section 47-17 - Information to Be Furnished with Respect to Changes in Ownership, Notification of Acquisitions, and Methods for the Transfer of Experience Rating
Universal Citation: SC Code Regs 47-17
Current through Register Vol. 48, No. 3, March 22, 2024
A. Notification to Department of discontinuance of business and changes of ownership for purposes of status determination and experience rating succession.
1. Any employer who discontinues business
shall give notice to the Department in writing. This notice shall include the
exact date of such discontinuance and shall be submitted promptly and must not
be made later than thirty (30) calendar days after the date of
discontinuance.
2. Any employer who
by any means transfers substantially all (95 per cent or more) of its business
or assets thereof to another shall notify the Department in writing. This
notice shall be submitted promptly and must not be made later than thirty (30)
calendar days after the date of transfer and shall include the date on which
the transfer occurred, together with the name and physical and/or mailing
address of the employing unit to whom the transfer was made.
3. Any employer who by any means transfers a
portion of its business to another shall notify the Department in writing. This
notice shall be submitted promptly and must not be made later than thirty (30)
calendar days after the date of transfer and shall include the date on which
the transfer occurred, together with the name and physical and/or mailing
address of the employing unit to whom the transfer was made. The Department
shall be informed as to the nature and extent of each such partial transfer
with particular reference to the description or identification of the part of
the business transferred, together with a notation as to the proportion of the
total business thus transferred.
4.
Each employing unit which by any means acquires all or a portion of the
business, or assets thereof, of any employer, or which has acquired its own
business, or all of the assets thereof, from another, which at the time of such
acquisition was an employer subject to the Act, shall notify the Department in
writing promptly and must not be made later than thirty (30) calendar days
after such acquisition occurred. This notice shall be in such form as to
include:
a. From whom acquired.
b. The exact date of acquisition.
c. The portion of the business or assets of
the predecessor acquired by the successor.
d. Whether acquirer is an individual,
partnership, corporation, or a derivative thereof. If a partnership, the name,
address and legal domicile of each partner must appear.
5. In the event of any change of form of
organization between, to or from a corporation to a partnership or individual
ownership; from partnership to corporation or individual ownership; or from
individual ownership to partnership or corporation, notice of such change and
the date thereof shall be made to the Department by the successor organization
within thirty (30) calendar days after such change.
6. The employer, if a corporation, shall
notify the Department of any change of name, forfeiture, or cancellations of
charter, reincorporation, merger or consolidation, or any other change in
corporate entity promptly and must not be made later than thirty (30) calendar
days after such action.
7. The
employer, if a partnership, shall notify the Department of any change in the
partnership by reason of any person ceasing to be or becoming a partner, and
shall report the name of any such person and the date that he or she ceased to
be or became a partner not later than thirty (30) calendar days after such
occurrence.
8. Employers shall
promptly notify the Department in the event of consolidation, dissolution,
receivership, insolvency, bankruptcy, composition, assignment for the benefit
of creditors, or similar proceedings not later than thirty (30) calendar days
after such proceeding.
B. Total Transfer of Experience Rating Where Substantially All (95 per cent or more) of a Business, or the Assets Thereof, Have Been Transferred to Another Employer.
1.
Both the transferring employer and the acquiring employer shall comply with
paragraphs A.2 and A.4 of this regulation and shall furnish such additional
information as may thereafter be requested by the Department.
2. The acquiring employer may expedite the
total transfer to it of the experience of the transferring employer by making
application therefore by letter or on such forms as the Department may furnish.
Such application should be filed with the Department promptly and in no case
later than thirty (30) calendar days after the succession occurred.
3. The Department shall upon its own
initiative transfer the experience of the transferring employer to the
acquiring employer whenever the Department ascertains that there has been a
transfer of substantially all of a business, or assets thereof, inasmuch as a
total transfer of the experience rating under such a condition is required by
law.
C. Partial Transfer of Experience Rating Where a Portion of a Business Has Been Transferred to Another Employer.
1. Both the transferring
employer and the acquiring employer shall comply with paragraphs A.3 and A.4 of
this regulation and shall furnish such additional information as may thereafter
be requested by the Department.
2.
The transferring employer may request by letter or by such forms as the
Department may furnish that the portion of its experience rating which is
attributable solely to the portion of the business acquired by the acquiring
employer be transferred to the acquiring employer. Such request should be filed
promptly and must not be made later than thirty (30) calendar days after the
succession occurred.
a. The acquiring employer
may request by letter or by such forms as the Department may furnish that the
portion of the experience of the transferring employer which is attributable
solely to the portion of the business acquired be transferred to the acquiring
employer. Such request should be filed promptly and must not be made later than
thirty (30) calendar days after the succession occurred.
3. Upon receiving the request from both the
transferring and acquiring employers for the transfer of the portion of the
experience of the transferring employer attributable solely to the portion of
the business acquired by the acquiring employer, the Department shall require
that the transferring employer supply the Department with the applicable
percentage(s), and if necessary, any taxable wages that are to be used in
determining the part of the experience to be transferred.
4. The Benefit Experience Record shall be
transferred from the predecessor to the successor as follows:
a. The payroll (taxable wages) for the
quarters used in the rate computation period(s).
b. The benefits charged to the predecessor's
experience rating for the quarters used in the rate computation
period(s).
5. In the
event that a separate subsidiary experience rating account has been maintained
by the Department with respect to the distinct and severable portion of the
business transferred for the entire period of the operation of such portion,
Sub-Items C.3 and C.4, above, will not apply. The benefits charged and total
payroll (taxable wages) appearing on such subsidiary account, together with
those Items entered on that account from the preceding June
30th up to the date of the partial transfer of
business will be transferred from the experience rating of the predecessor
(transferring) employer to the experience rating of the acquiring employer.
Attention is directed to Sections
41-31-100
through
41-31-120
of the South Carolina unemployment Law as to the conditions under which total
or partial transfer of experience rating can take place and as to the
provisions for rate computations upon such transfer. The law directs that no
partial transfer of experience may be made unless requests are submitted to the
Department by both the transferring and the acquiring employers.
Disclaimer: These regulations may not be the most recent version. South Carolina 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.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.