S.C. Code Regs. § 47-39 - Joint Account

A. Two or more "employers" as defined in Section 41-27-200, South Carolina Code of Laws, 1976, as amended, in the same or a related trade, occupation, profession, or enterprise, or having a common financial interest, hereinafter referred to as an "Employer Group," may enter into an agreement with the Department to establish a joint experience rating account as provided in Section 41-31-20; subject to the provisions of Article 1 of Chapter 31 of Title 41 of the 1976 Code--Rates of Contribution; shall be treated as a separate employer account and subject to the following provisions:

1. A joint account may not be established for a period of less than five (5) years beginning with the first day of the calendar year in which such application for the establishment of such account is approved by the Department.

2. The contribution rate for an "employer group" shall be computed as of June 30 or December 31 based upon the date of approval by the Department. Approvals between January 1 and June 30 will be computed as of June 30; approvals between July 1 and December 31 will be computed as of December 31. This rate will be applicable for the subsequent tax year. Such computation shall be based upon the aggregate experience rating of all the members of the group for the applicable rate computation time period.

3. No "employer" may become a member of an "employer group" until such employer has satisfied the provision of Section 41-31-40 ( twelve (12) months of accomplished liability).

4. Separate accounts shall be maintained for each employer in an "employer group" for identification, with such separate accounts being combined only for the purpose of establishing a joint experience rate.

5. No "employer group" shall have a reduced contribution rate when an execution for unpaid contributions is outstanding against one or more members of the "employer group."

6. If a member of an "employer group" acquires the business of an employer, the experience of the predecessor employer shall be transferred to the separate account of the acquiring employer. The provision of Section 41-31-100 or Section 41-31-110 as applicable shall apply to the "employer group" in accord with Sub-Item thereof.

7. All members of an "employer group" shall remain members until the dissolution thereof. This provision shall also apply to a successor who acquires the business of a member of an "employer group," provided however, if for any reason the business of a member of an "employer group" is discontinued, or if the liability of a member is terminated in accord with Chapter 37 of Title 41 of the 1976 Code, the experience in the account of the discontinued business shall remain a part of the experience of the "employer group" until the next rate computation.

8. An "employer group" may be dissolved and the joint account distributed in accord with Section 41-31-120 on the next regular computation date:

a. by 50 per cent or more of the employers in the "employer group" each of which has at least five (5) percent of the total wages on the date of the dissolution.

b. Each member of the "employer group" thus dissolved will be considered for the purposes of Section 41-31-120 as the successor to his own business and the employer group will be treated as the predecessor.

c. In the event the experience of any member of the "employer group" was retained as a part of the experience of the "employer group" upon the discontinuance of business or termination of liability in accord with Chapter 37 of Title 41 of the 1976 Code, the experience account of such an employer upon dissolution of the group:

i. will be inactivated if the employer ceased to do business;

ii. will be canceled if the employer terminated liability.

9. Each member of an "employer group" will be responsible for keeping the records and filing the reports required by the Department with respect to individuals in its employment. Every member of the "employer group" shall be liable individually or collectively for all past due penalties, contributions, and interest of any member and shall be subject to the provisions of Article 3 of Chapter 31 of Title 41 of the 1976 Code.

10. Benefits paid, chargeable to a member of an "employer group" shall be used in computing the experience rate of the "employer group;" however, only the employer to whom benefits are chargeable shall have the right of appeal in accord with the appeals provisions in Article 5 of Chapter 35 of Title 41 of the 1976 Code.

11. No provision in Section 41-31-20 or in this regulation issued pursuant thereto shall be construed as giving any member of an "employer group" any authority over the operation of another member with respect to the administration of the joint "employer group" account.

Notes

S.C. Code Regs. § 47-39

Amended by State Register Volume 24, Issue No. 5, eff May 26, 2000; State Register Volume 35, Issue No. 6, eff June 24, 2011.