§ 22-4-11.5-7 — Transferring all or part of trade or business; successor employers with substantially common ownership, management, or control

Indiana § 22-4-11.5-7

• Jurisdiction: Indiana
• Art. 4: UNEMPLOYMENT COMPENSATION SYSTEM
• Ch. 11.5: Assignment of Employer Contribution Rates and

Text

(a) This section applies to a transfer of a
trade or business that meets the following requirements:
(1) An employer transfers all or a portion of the employer's trade
or business to another employer.
(2) At the time of the transfer, the two (2) employers have
substantially common ownership, management, or control.
(b) The successor employer shall assume the experience account
balance of the predecessor employer for the resources and liabilities of
the predecessor employer's experience account that are attributable to
the transfer.
(c) The contribution rates of both employers shall be recalculated,
and the recalculated rate made effective on the first day of the calendar
year during which the transfer occurred if the effective date of the
transfer described in subsection (a) is before April 1, and the first day
of the subsequent calendar year, if the effective date of the transfer
described in subsection (a) is after March 31.
(d) The payroll of the predecessor employer on the effective date of
the transfer, and the benefits chargeable to the predecessor employer's
original experience account after the effective date of the transfer, must
be divided between the predecessor employer and the successor
employer in accordance with rules adopted by the department under IC 4-22-2.
(e) Any written determination made by the department is conclusive
and binding on both the predecessor employer and the successor
employer unless one (1) employer files or both employers file a written
protest with the department setting forth all reasons for the protest. A
protest under this section must be filed not later than fifteen (15) days
after the date the department sends the initial determination to the
employers. The protest shall be heard and determined under this
section and IC 22-4-32-1 through IC 22-4-32-15. The predecessor
employer, the successor employer, and the department shall be parties
to the hearing before the liability administrative law judge and are
entitled to receive copies of all pleadings and the decision.

Legislative History

As added by P.L.98-2005, SEC.9. Amended by P.L.108-2006, SEC.18; P.L.122-2019, SEC.26.