(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 shall 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 shall
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.
