a) Within 30 days
after the date of any transfer to which Section 1507.1(A)(1) of the Act
applies, the transferor and transferee shall provide the Department the number
of covered workers employed by the transferor on the last day of business
immediately preceding the date of transfer and the number of those workers
transferred to the transferee.
b)
In the case of a transfer to which Section 1507.1(A)(1) of the Act applies:
1) Of the benefit charges that were incurred
by the transferor, and wages that were paid by the transferor for insured work,
for each calendar quarter prior to the quarter in which the transfer takes
effect:
A) the percentage apportioned to the
transferee shall equal the percentage of the covered workers transferred to the
transferee; and
B) the percentage
apportioned to the transferor shall equal;
i)
the difference between 100% and the percentage apportioned to the transferee
pursuant to this subsection (b)(1); or
ii) in the case of multiple transferees, the
difference between 100% and the percentage apportioned to the transferees
pursuant to this subsection (b)(1).
2) Of the benefit charges that were incurred
by the transferor, and wages that were paid by the transferor for insured work
prior to the transfer, for the calendar quarter in which the transfer takes
effect;
A) the percentage apportioned to the
transferee shall equal the percentage of the covered workers transferred to the
transferee multiplied by the quotient obtained by dividing the number of the
days elapsed in the quarter as of the day of the transfer, including the day of
the transfer, by the total number of days in the quarter, rounded to the
nearest multiple of .0001% (e.g., if the transfer occurred on November 7, the
quotient would be 41.3043 % because the transfer occurs on the
38th day of the quarter and there are 92 days in
that quarter); and
B) the
percentage apportioned to the transferor shall equal:
i) the difference between 100% and the
percentage apportioned to the transferee pursuant to this subsection (b)(2);
or
ii) in the case of multiple
transferees, the difference between 100% and the percentage apportioned to the
transferees pursuant to this subsection (b)(2).
EXAMPLE: On November 7, 2017, Employer A transfers 30.0000 %
of its covered workers to Employer B. At the time of the transfer, there was
substantial common ownership, management, or control of Employers A and B.
Thirty percent of the benefit charges incurred by A, and 30.0000% of the wages
paid by A for insured work, for all quarters prior to the
4th quarter of 2017, will be transferred to Employer
B. For the 4th quarter of 2017, since there are 92
days in the quarter, and since the transfer occurred on the
38th day of the quarter, 12.3913 % of the benefit
charges Employer A incurred, and 12.3913% of the wages Employer A paid for
insured work, prior to the transfer, for the quarter (30.0000% of 41.3043%)
will be apportioned to Employer B. The remainder will be apportioned to
Employer A.
3) For purposes of this subsection (b), the
percentage of covered workers transferred to the transferee shall equal the
number of covered workers employed by the transferor on the last day of
business immediately preceding the date of transfer divided into the number of
those workers transferred to the transferee. The percentage shall be calculated
to the nearest multiple of .0001% and, if equally near to 2 multiples of
.0001%, increased to the higher multiple of .0001%;
EXAMPLE: Employer A has 165 covered workers as of November 6,
2017. On November 7, 2017, Employer A transfers 11 of those workers to Employer
B. The percentage of the covered workers transferred to Employer B equals
6.6667 percent (11 divided by 165 equals 0.06666667 calculated to 8 decimal
places and equals 6.6667% rounded to the nearest multiple of .0001%).
4) As of the effective date of the
transfer, the transferor and transferee shall each be considered to have been
liable for the payment of contributions during each calendar year during which
the transferor was liable for the payment of contributions.
EXAMPLE: Employer A incurred liability for the payment of
contributions in each of the calendar years 2010 through 2017. Prior to the
transfer, Employer B incurred liability for the payment of contributions in
calendar year 2017. On May 7, 2017, Employer A transfers a portion of its trade
or business to Employer B. At the time of the transfer, there was substantial
common ownership, management, or control of Employers A and B. As a result,
Employers A and B will have incurred liability for the payment of contributions
in each of the calendar years 2010 through 2017.
