California Code of Regulations › Title 22 - Social Security › Division 1 - Employment Development Department › Subdivision 1 - Director of Employment Development › Division 1 - Unemployment and Disability Compensation › Part 1 - Unemployment Compensation › Chapter 4 - CONTRIBUTIONS AND REPORTS › Article 5 - TRANSFER OF RESERVE ACCOUNTS › Section 1052-1 - Reserve Account Transfer -Severable Portion Formula

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) On receipt of an application for transfer
						  within the time limits prescribed in Sections
						  1051 and
						  1053 of the code that part of the
						  separate account, actual contribution and benefit experience and pay rolls of
						  the predecessor which pertains to such severable portion shall, for the
						  purposes set forth in Section
						  1052 of the code be transferred to
						  the successor employer in the manner set forth in the following table:
Item charged or
										credited to predecessor
Part to be transferred
										to successor acquiring severable portion
(1)
The pay rolls consisting of the
									 wages paid during the most recent period of three consecutive calendar years
									 immediately preceding the transfer computation date.
Payrolls pertaining to severable portion.
(2)
Reserve balance accumulated during
									 the period from the computation date occurring in the year in which these
									 variable portion began operating to the transfer computation date.
Transfer percentage times such reserve balance.
(3)
Pay roll for period following
									 period of Item (1) to date of acquisition.
Payroll
									 pertaining to severable portion.
(4)
Contributions for period beginning
									 with transfer computation date and ending with date of acquisition.
Contributions pertaining to severable portion.
(5)
Benefits paid subsequent to the
									 transfer computation date which but for the transfer would be chargeable
									 entirely to the predecessor.
(A)
Transfer percentage times
									 benefits paid between the transfer computation date and the computation date
									 immediately following the date of acquisition, and
Part to be transferred to successor acquiring
									 severable portion Payrolls pertaining to severable portion. Transfer percentage
									 times such reserve balance. Pay roll pertaining to severable portion.
									 Contributions pertaining to severable portion.
(B)
Transfer
									 percentage less one-twelfth thereof for each month by which the acquisition
									 date preceded the following computation date times benefits paid between the
									 computation date immediately following the date of acquisition and the
									 following computation date.
(C)
In the case of two or more
									 simultaneous successors to a predecessor employer who does not continue in
									 business after the acquisition, the benefit charges which appear in the account
									 of the predecessor on each computation date after the transfer computation date
									 shall be allocated to each successor on the basis of the transfer percentage
									 which pertains to each successor.
(b) If a predecessor or a successor considers
						  that the part to be transferred to the successor or successors acquiring a
						  severable portion as computed under subdivision (a) of this section is or may
						  be inequitable, either the predecessor or a successor may submit information to
						  the director with respect to the actual experience of the severable portion.
						  The director may require such additional information and reports as may be
						  necessary for the computation of the actual experience of the severable
						  portion. If the information and reports necessary for the computation of the
						  actual experience of the severable portion are submitted, the director shall
						  transfer such actual experience in accordance with such information and
						  reports.
1.
							 Amendment filed 8-5-60; designated effective 8-15-60 (Register 60, No.
							 17).
2. Amendment of NOTE filed 11-20-81; effective thirtieth day
							 thereafter (Register 81, No. 47).
Note: Authority cited: Sections
								305
								and
								306,
								Unemployment Insurance Code. Reference: Section
								1052,
								Unemployment Insurance Code.
See Regulation 1051-1 for definitions applicable to
								Regulation 1052-1.