This text of Indiana § 22-4-11.5-8 (Transfers solely to obtain lower employer contribution rate) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(a)If the department determines that an
employing unit or other person that is not an employer under IC 22-4-7
at the time of the acquisition has acquired an employer's trade or
business solely or primarily for the purpose of obtaining a lower
employer contribution rate, the employing unit or other person:
(1)may not 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 acquisition; and
(2)shall pay the applicable contribution rate as determined under
this article.
(b)In determining whether an employing unit or other person
acquired a trade or business solely or primarily for the purpose of
obtaining a lower employer contribution rate under subsection (a), the
dep
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(a) If the department determines that an
employing unit or other person that is not an employer under IC 22-4-7
at the time of the acquisition has acquired an employer's trade or
business solely or primarily for the purpose of obtaining a lower
employer contribution rate, the employing unit or other person:
(1) may not 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 acquisition; and
(2) shall pay the applicable contribution rate as determined under
this article.
(b) In determining whether an employing unit or other person
acquired a trade or business solely or primarily for the purpose of
obtaining a lower employer contribution rate under subsection (a), the
department shall consider the following factors:
(1) The cost of acquiring the trade or business.
(2) Whether the employing unit or other person continued the
business enterprise of the acquired trade or business, including
whether the predecessor employer is no longer performing the
same trade or business and the trade or business is performed by
the employing unit to whom the workforce is transferred. An
employing unit is considered to continue the business enterprise
if any one (1) of the following applies:
(A) The predecessor employer and the employing unit are
corporations that are members of a "controlled group of
corporations", as defined in Section 1563 of the Internal
Revenue Code (generally parent-subsidiary or brother-sister
controlled groups), or would be members if Section 1563(a)(4)
and 1563(b) of the Internal Revenue Code did not apply and if
the phrase "more than fifty percent (50%)" were substituted for
the phrase "at least eighty percent (80%)" wherever it appears
in Section 1563(a) of the Internal Revenue Code.
(B) The predecessor employer and the employing unit are
entities that are part of an affiliated group, as defined in Section
1504 of the Internal Revenue Code, except that the ownership
percentage in Section 1504(a)(2) of the Internal Revenue Code
shall be determined using fifty percent (50%) instead of eighty
percent (80%).
(C) A predecessor employer and an employing unit are entities
that do not issue stock, either fifty percent (50%) or more of the
members of one (1) entity's board of directors (or other
governing body) are members of the other entity's board of
directors (or other governing body), or the holders of fifty
percent (50%) or more of the voting power to select these
members are concurrently the holders of fifty percent (50%) or
more of that power with respect to the other entity.
(D) Fifty percent (50%) or more of one (1) entity's officers are
concurrently officers of the other entity.
(E) Thirty percent (30%) or more of one (1) entity's employees
are concurrently employees of the other entity.
(3) The length of time the employing unit or other person
continued the business enterprise of the acquired trade or
business.
(4) Whether a substantial number of new employees were hired
to perform duties unrelated to the business enterprise that the
trade or business conducted before the trade or business was
acquired.
(5) Whether the predecessor employer and the employing unit are
united by factors of control, operation, or use.
(6) Whether a new employing unit is being created solely to
obtain a lower contribution rate.
(c) Any written determination made by the department is conclusive
and binding on the employing unit or other person, unless the
employing unit or other person files 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 employing unit or
other person. The protest shall be heard and determined under this
section and IC 22-4-32-1 through IC 22-4-32-15. The department and
the employing unit or other person shall be parties to the hearing before
the liability administrative law judge and are entitled to receive copies
of all pleadings and the decision.