Ariz. Admin. Code § R6-3-1712 - Joint, Multiple, and Combined Employer Experience Rating Accounts
A. Joint experience
rating accounts
1. Joint experience rating
account means a combined experience rating account established for 2 or more
employers owned or controlled directly or indirectly by the same
interests.
2. Employers may request
establishment of a joint experience rating account by sending the Department a
written request before March 1 of the calendar year for which the joint
experience rating account is sought. The request shall identify all employers
to be included as members in the joint experience rating account and provide
documentation that the members are owned or controlled directly or indirectly
by the same interests.
3. The
Department shall approve a request for a joint experience rating account when:
a. The request is received before March 1 of
the calendar year for which the joint experience rating account is
sought;
b. Each member identified
in the request is owned or controlled directly or indirectly by the same
interests; and
c. The experience
rating account of each member has been chargeable with benefits throughout the
12 consecutive calendar months ending on June 30 of the year preceding the
calendar year for which the joint experience rating account is
requested.
4. The
average annual payroll for a joint experience rating account shall be the sum
of the average annual payrolls of the members of such account.
5. A member of a joint experience rating
account may withdraw from a joint account as of January 1 of any year after
participating in the joint account for at least 2 calendar years. To withdraw,
the member shall file a written request for withdrawal before March 1 of the
calendar year for which the withdrawal is sought. Upon approval of the
withdrawal:
a. The Department shall give the
withdrawing member the member's portion of the joint experience rating account
and a contribution rate computed on the member's separate experience,
and
b. The Department shall give
the remaining members a contribution rate computed on the experience of the
remaining members.
6.
The Department shall remove a member from a joint experience rating account
when the Department determines that common ownership or control has ceased to
exist between 2 or more members of a joint account:
a. The Department shall give the removed
member, as of the date of the change of common ownership or control, a separate
experience rating account and a contribution rate computed on the removed
member's portion of the joint experience rating account;
b. The remaining members shall:
i. Retain the contribution rate of the joint
experience rating account for the remainder of the calendar year in which the
change occurred; and
ii. Receive a
contribution rate for the following calendar year computed on the basis of the
experience of the remaining members.
B. Multiple experience rating accounts.
1. Multiple experience rating account means
an experience rating account established for an employer which permits separate
employer account numbers and quarterly reports for separately identified
operations of the employer.
2. The
Department may approve a request for a multiple experience rating account
effective with the year in which the employer submits a written application for
such account.
3. The notices of
benefit charges sent to the employer shall identify charges to each operation,
but the contribution rate for the employer shall be a single rate based on the
combined experience of all operations.
4. Upon written request of the employer, the
Department shall close 1 or more separate accounts in a multiple experience
rating account and transfer the experience to a remaining account of the
employer as of the beginning of the calendar year of the written
request.
5. When an operation which
is a part of a multiple account is sold or transferred, the Department shall
transfer the experience rating reserve if the provisions of A.R.S. §
23-733
and A.A.C.
R6-3-1713 are
met.
C. Combined
experience rating accounts
1. Combines
experience rating account means an experience rating account established for an
employer which requires separate employer account numbers, quarterly reports,
and charge notices for separately identified operations that meet more than 1
of the coverage provisions described below, except that a combined account will
not be established for agricultural employers if the employees covered under
general coverage are in the agricultural industry. The contribution rate for
the employer is a single rate based on the combined experience of all
operations.
a. General coverage means
coverage on the basis of employment of 1 or more individuals for 20 weeks in a
calendar year, payment of $1500 or more wages in a calendar quarter,
successorship, common ownership or control, voluntary election, or coverage
under the Federal Unemployment Tax Act.
b. Agricultural coverage means coverage on
the basis of employment of 10 or more individuals in agricultural labor for 20
weeks in a calendar year or payment of cash wages of $20,000 or more in a
calendar quarter, voluntary election, successorship, or coverage under the
Federal Unemployment Tax Act.
c.
Domestic coverage means coverage on the basis of payment of cash wages of $1000
or more in a calendar quarter for domestic service, voluntary election,
successorship, or coverage under the Federal Unemployment Tax Act.
2. The Department shall establish
a combined experience rating account only on its own initiative for the reasons
set forth in this Article.
3. The
Department shall not permit the members to voluntarily withdraw from a combined
account.
4. The Department shall
remove a member of a combined account when a change of ownership occurs as
provided in
R6-3-1713 and
A.R.S. §
23-733.
5. If the operation of a member of a combined
experience rating account qualifies for termination under the provisions of
A.R.S. §
23-725,
the Department shall terminate the experience of the member's account and
assign a rate for the combined experience rating account of the remaining
members for the next calendar year, based on the remaining members' own
experience.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.