Chapter 4141-15 Contribution Rates

4141-15-01 Contribution rate of a liable successor-in-interest, in whole or in part.

Except as provided in division (G) of section 4141.24 or section 4141.48 of the Revised Code, the contribution rate of a successor-in-interest that was subject to Chapter 4141. of the Revised Code prior to the date of transfer, shall not be revised to reflect the experience of the predecessor for the calendar year in which the date of transfer occurred as determined by the director. The contribution rate of the successor-in-interest for the calendar year following the year in which the transfer occurred and for each calendar year thereafter shall be based on the combined experience of the successor and predecessor employers.

R.C. 119.032 review dates: 08/26/2014 and 08/01/2019
Promulgated Under: 4141.14
Statutory Authority: 4141.13
Rule Amplifies: 4141.24 , 4141.48
Prior Effective Dates: 1/1/74, 7/3/86, 12/30/91, 1/15/01, 1/1/06

4141-15-02 [Rescinded] Contribution rate for a non-liable successor-in-interest, in whole.

Effective: 11/06/2014
Five Year Review (FYR) Dates: 08/19/2014
Promulgated Under: 4141.14
Statutory Authority: 4141.13(A)
Rule Amplifies: 4141.24 , 4141.25 , 4141.48
Prior Effective Dates: 4/1/56, 7/3/86, 12/30/91, 5/1/93, 1/15/01, 1/1/06

4141-15-03 Contribution rate for a non-liable successor-in-interest, in whole or in part.

Except as provided by division (G) of section 4141.24 or section 4141.48 of the Revised Code, when a successor-in-interest to all or a part of a trade or business was not an employer subject to the Ohio unemployment compensation law prior to the date of transfer, then such successor employer's rate shall be established under division (A) of section 4141.25 of the Revised Code.

Replaces: 4141-15-02

Effective: 11/06/2014
Five Year Review (FYR) Dates: 08/19/2014 and 11/01/2019
Promulgated Under: 4141.14
Statutory Authority: 4141.13
Rule Amplifies: 4141.24 , 4141.25(A) , 4141.48
Prior Effective Dates: 1/1/52, 4/1/56, 7/3/86, 5/29/90, 12/30/91, 5/1/93, 12/14/99, 1/15/01, 1/1/06

4141-15-04 Assignment of average contribution rate for employers engaged in the construction industry.

For the purpose of assigning an average contribution rate for employers engaged in the construction industry pursuant to division (A)(1) of section 4141.25 of the Revised Code, the director shall assign the average contribution rate attributable to the construction industry group as reflected in Ohio department of job and family services, labor market information report RS 203.2. The average contribution rate for employers in the construction industry shall be assigned based upon the most recent report RS 203.2 issued prior to the contribution period throughout which such rates are to be effective and shall be rounded to the nearest tenth of one per cent.

Eff 5-1-93; 10-29-93; 7-1-98; 1-15-01; 2-22-04
Rule promulgated under: RC 119.03 , 4141.14
Rule authorized by: RC 4141.13
Rule amplifies: RC 4141.25
R.C. 119.032 review dates: 11/10/2009 and 11/01/2014

4141-15-05 Eligibility for common rate.

(A) Each employer desiring to participate in a common rate shall make application in writing signed by a duly authorized representative. The application may, if the parties elect, be filed as a joint request, signed by a duly authorized representative of each entity desiring to participate in the common rate. Such application must be made on or before the thirty-first of December of the year preceding that for which the common rate is to apply. Each application shall contain the names and the unemployment compensation account numbers of all the employers applying for the common rate and a statement explaining the ownership common to each employer applicant. In the event that such application is granted and a common rate group is established, such common rate group shall be in force and effect annually thereafter, provided that each member of the common rate group continues to meet the eligibility requirements each year thereafter. The common rate and the group shall be discontinued effective at the close of any calendar year with respect to which the director determines that the requirements were not met or in the event the participating employers or any one thereof shall notify the director in writing by the thirty-first of December of that calendar year of its wish to discontinue the use of a common rate effective the thirty-first of December of that calendar year.

(1) To be eligible for a common rate, each employer desiring to participate in the common rate must:

(a) Be subject to Chapter 4141. of the Revised Code as of the first day of the year for which the common rate is to apply;

(b) Be eligible for an experience rate on its own individual experience;

(c) Have a positive balance in its account; and

(d) Be owned by the same business entity, business entities, individual, or individuals and the business entity, business entities, individual, or individuals must have controlling interest in each of the employers to be included in the group.

(2) For the purposes of this rule, "controlling interest" means that the business entity, business entities, individual, or individuals own more than fifty per cent of the employer as measured by shares of stock, partnership share, or other appropriate measure of business interest ownership as determined by the director.

(B) Each employer's account shall be maintained as a separate entity, and each employer shall submit contribution reports and shall be charged for benefits in the same manner as all other employers. One legal entity may not report nor pay contributions for another legal entity by what may be known as a common paymaster arrangement or by some other similar agreement.

(C) Common rates shall be determined by finding the sum of the average annual payrolls and the sum of the positive balances of all the members of the common rate group and computing the rate under section 4141.24 and division (A) of section 4141.25 of the Revised Code.

(D) If one of the employers in a group granted a common rate shall have its status changed during the year because of a sale, merger, reorganization, or any other cause, the common contribution rate of the remainder of the group will continue in effect until the close of the calendar year in which the status change was effective. The employer having the change in status shall lose its right to the common rate as of the effective date of the status change.

(E) No employer may participate in more than one common rate group simultaneously. An employer participating in a common rate group must request discontinuance of its participation in the existing common rate group and be determined to have discontinued participation in the existing common rate group before the employer may be considered eligible to participate in a newly constituted common rate group. An application for participation in a common rate group shall not be construed by the director as an implied request for discontinuance of an existing common rate group.

(F) If the director finds that any employer or group of employers participating in a common rate has failed or neglected to comply with the Ohio law and the rules of the department of job and family services, the director may, effective with the date of such failure or neglect, discontinue such common rate.

Effective: 12/15/2011
R.C. 119.032 review dates: 09/28/2011 and 12/01/2016
Promulgated Under: 4141.14
Statutory Authority: 4141.13
Rule Amplifies: 4141.24 , 4141.25
Prior Effective Dates: 10/29/93, 3/26/99, 12/14/99, 1/15/01, 1/1/06

4141-15-06 Determining when an employer's account is chargeable for benefits.

For the purposes of division (A)(2) of section 4141.25 of the Revised Code, effective for contribution periods beginning January 1, 2002, a contributory employer's account shall be considered "chargeable with benefits" for the nine consecutive calendar quarters immediately following any calendar quarter in which the employer had employment subject to Chapter 4141. of the Revised Code.

R.C. 119.032 review dates: 09/24/2012 and 09/01/2017
Promulgated Under: 4141.14
Statutory Authority: 4141.13
Rule Amplifies: 4141.25
Prior Effective Dates: 1/15/01

4141-15-07 Contribution rate for a successor-in-interest with no recent employment history.

Except as provided by division (G) of section 4141.24 or section 4141.48 of the Revised Code, the contribution rate of a successor-in-interest that had no employment subject to Chapter 4141. of the Revised Code for the seven calendar quarters immediately preceding the date of transfer, shall be determined by the director, for the calendar year in which the transfer occurred and thereafter, based on the combined experience of the successor and predecessor employers.

Replaces: Part of 4141-15-03

R.C. 119.032 review dates: 08/26/2014 and 08/01/2019
Promulgated Under: 4141.14
Statutory Authority: 4141.13
Rule Amplifies: 4141.24 , 4141.48
Prior Effective Dates: 1/1/52, 7/3/86, 5/29/90, 12/30/91, 12/14/99, 1/1/06

4141-15-08 Special contribution rates.

(A) If the director finds pursuant to division (G)(1) of section 4141.24 of the Revised Code that an employer has transferred its trade or business, or a portion thereof, to another employer and the transferee is under substantially common ownership, management, or control with the transferor, the director shall transfer the experience of the transferor to the transferee and recalculate the rate of both employers effective the date of the transfer, and for each calendar year thereafter.

(B) If the director finds pursuant to division (G)(2) of section 4141.24 of the Revised Code that any person acquired the trade or business of an employer solely or primarily for the purpose of obtaining a lower rate of contributions, the unemployment experience of the acquired trade or business shall not be transferred, and the director shall assign a rate to the person pursuant to division (A) of section 4141.25 of the Revised Code effective for the calendar year in which the acquisition of the trade or business occurred, and for each applicable calendar year thereafter.

(C) If the director finds pursuant to division (C) of section 4141.48 of the Revised Code that a person knowingly violated, attempted to violate, or advised another person in a way that resulted in a violation of division (A) of section 4141.48 of the Revised Code or any other provision of Chapter 4141. of the Revised Code related to determining the assignment of a contribution rate, the person is subject to the following penalties:

(1) If the person is an employer, the director shall assign the employer the highest maximum rate or penalty rate assignable under Chapter 4141. of the Revised Code for the rate year during which the violation or attempted violation occurred and the three rate years immediately following that rate year, except that, if the person's business is already at the highest rate for any of those years, or if the amount of increase in the person's rate would be less than two per cent for that year, then an additional penalty rate of contributions of two per cent of taxable wages shall be imposed for that year.

(2) If the person is not an employer, the director shall assess a fine of five thousand dollars.

Effective: 08/14/2008
R.C. 119.032 review dates: 01/01/2011
Promulgated Under: 4141.14
Statutory Authority: 4141.13
Rule Amplifies: 4141.24 , 4141.48
Prior Effective Dates: 01/01/06