Iowa Admin. Code r. 871-23.29 - Transfer of entire business
(1)
Notice
of acquisition.
a. Whenever an
employing unit in any manner succeeds to or acquires from an employer either
the organization, trade or business or substantially all the assets thereof,
and continues such organization, trade or business, such employing unit shall
notify the department to transfer the account of the predecessor employer to
the successor employing unit. The notification must include the name and
address of the predecessor, the date of transfer, and the name and address of
the successor. When the department receives the notice, or alternatively, when
the department receives through other means information establishing the
acquisition, the actual contribution and benefit experience and taxable
payrolls of the predecessor will be transferred to the successor employing unit
to determine its rate of contribution. Thereafter, benefits chargeable are
charged to the account of the successor. The predecessor must notify the
department of the status change.
b.
Where one or more employing units have been reorganized, merged or consolidated
into a single employing unit and the successor employing unit continues to
operate the merged or consolidated enterprise, the employing units involved
shall notify the department within 30 days from the date of the transaction.
All entities involved in the merger shall provide the articles of merger or, if
there are no articles of merger, a statement advising of the merger.
(1) The predecessor business or businesses
involved in the merger shall each file a final quarterly payroll report form as
soon as possible after the merger has occurred but in no case later than 30
days after the close of the quarter in which the merger was
effective.
(2) The successor entity
shall indicate whether the experience rates of all accounts are to be combined
and the rate recomputed for the balance of the calendar year in which the
merger took place.
(2)
Contribution rate. The
successor's contribution rate for the remainder of the calendar year in which
an acquisition took place is determined as follows:
a. If the successor had no account prior to
the transfer and the successor purchased the business of only one predecessor,
or more than one predecessor with identical rates, the rate assigned will be
the rate of the predecessor employer or employers.
b. If the successor had no account prior to
the transfer and purchased the business of more than one predecessor with the
same legal date of transfer, the rate assigned will be a computed rate based on
the combined experience of all the predecessor employers.
c. If the successor in a merger had an
account prior to the transfer, the rate assigned will be the successor's
current rate. However, the successor may apply for a recomputed rate based on
the combined experience of all predecessors and the experience of the successor
only if the legal date of transfer is prior to October 1 in the year it took
place.
This rule is intended to implement Iowa Code section 96.7(2) "b."
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.
(1) Notice of acquisition.
a. Whenever any employing unit in any manner succeeds to or acquires from an employer either the organization, trade or business or substantially all the assets thereof, and continues such organization, trade or business, such employing unit shall notify the department for the purpose of accomplishing the transfer of the reserve account of the predecessor employer to the successor employing unit. Such notification must include the name and address of the predecessor, the date of acquisition, and the name and address of the successor. When such notice has been received or in the absence of the notice when necessary information establishing that the acquisition occurred has been received by the department, the actual contribution and benefit experience and taxable payrolls of the predecessor shall be transferred to the successor employing unit for determining its rate of contribution. Thereafter, benefits chargeable because of employment for such transferred organization, trade, or business shall be charged to the account of the successor. The predecessor must notify the department of the status change.
b. Where one or more employing units have been reorganized, merged or consolidated into a single employing unit and the successor employing unit continues to operate such merged or consolidated enterprise, the employing units involved shall notify the department within 30 days from the date of the transaction. All entities involved in the merger shall provide the articles of merger, or if there are no articles of merger, a statement advising that the merger has transpired.
(1) The predecessor business or businesses involved in the merger shall each file a final quarterly payroll report form as soon as possible after the merger has occurred but in no case later than 30 days after the close of the quarter in which the merger occurred.
(2) The successor entity shall indicate whether or not the experience rates of all accounts are to be combined and the rate recomputed for the balance of the calendar year in which the merger took place.
(2) Contribution rate. The successor's contribution rate for the remainder of the calendar year beginning with the date of acquisition shall be assigned as follows:
a. If the successor had no account prior to the transfer and the successor purchased the business of only one predecessor, or more than one predecessor with identical rates, the rate assigned will be the rate of the predecessor employer or employers.
b. If the successor had no account prior to the transfer and purchased the business of more than one predecessor on the same day, the final rate assigned will be a computed rate based on the combined experience of all the predecessor employers.
c. If the successor had an account prior to the transfer, the rate assigned will be the successor's existing rate. However, the successor may apply for a recomputed rate based on the combined experience of the predecessor or predecessors and the experience of the successor.
This rule is intended to implement Iowa Code section 96.7(2)"b. "