Connecticut Administrative Code › Title 31 - Labor › 222 - Unemployment Compensation › Section 31-222-14 - Joint accounts; merger of experience; contribution rates

Current through July 10, 2024
(a) Any employer not previously subject to
			 the act, who becomes subject by reason of acquiring substantially all of the
			 assets, organization, trade or business of a covered employer, may, after
			 written application on a form provided by the administrator and upon approval
			 by the administrator, succeed to the experience of the predecessor employer.
			 Such written application shall be submitted by the employer within ten days
			 following the date of the administrator's notice to him advising him of his
			 liability under the law, and such written notice shall be accompanied by a
			 written statement signed by the predecessor employer, waiving the predecessor's
			 rights to his experience and tax credit in favor of the successor. Transfer of
			 the experience and any unliquidated balance of tax credit of the predecessor
			 employer will be effective as of the date of acquisition of the business. The
			 administrator upon good cause may extend the time for application.
(b) Any employer not previously subject to
			 the act, who becomes subject by reason of acquiring substantially all of the
			 assets, organization, trade or business of two or more covered employers who
			 enjoyed different merit rates, may, after written application on a form
			 provided by the administrator and upon approval by the administrator, succeed
			 to the experience of the predecessor employers. The successor employer will be
			 granted a composite merit rate for the remainder of the calendar year in which
			 acquisition of the business takes place. The composite rate shall be the
			 quotient obtained by dividing the sum of the total estimated contributions of
			 each of the predecessor employers for the whole of the calendar year in which
			 the acquisition takes place by the sum of the payroll of each of the
			 predecessor employers for the preceding calendar year. Merger of experience
			 will be allowed as of June thirtieth of the year in which the acquisition takes
			 place.
(c) If an employer who is
			 subject to the act acquires substantially all of the assets, organization,
			 trade or business of a covered employer, merger of the experience may be
			 allowed, upon written application to the administrator, on a form provided by
			 the administrator as of June thirtieth of the year in which the acquisition
			 takes place. The first contribution rate based upon the joint experience will
			 become effective for the calendar year following such June thirtieth.
(d) An employer who acquires a portion of but
			 less than substantially all of the assets, organization, trade or business of a
			 covered employer, which portion had been operated as a segregated unit, may
			 apply for a joint account with and succeed to the experience of the
			 transferring employer with respect to such segregated unit. Such application,
			 on a form provided by the administrator, shall be accompanied by a written
			 statement signed by the transferring employer, waiving his rights to the
			 experience with respect to such unit in favor of the acquiring employer. If
			 such employer was not previously subject to the act and because of such
			 acquisition becomes immediately liable, he shall pay contributions at the same
			 reduced rate as the transferring employer from the date of the acquisition to
			 the end of the calendar year, if the segregated unit has been in operation
			 during the whole of the preceding experience period ending on June thirtieth
			 with respect to which the rate currently in effect at the time of the
			 acquisition was established; otherwise he shall pay at the full rate of two and
			 seven-tenths per cent. A segregated unit is a unit, by whatever name called,
			 for which the payroll records have been so maintained that the employment
			 experience as is required for merit rating purposes may readily be identified
			 and separated.
(e) The
			 administrator will establish a joint account for two or more active employers
			 as of June thirtieth of any year upon written application of each such
			 employer, provided such applications shall be filed not later than the
			 September thirtieth next succeeding such June thirtieth. The first contribution
			 rate based upon the joint experience will become effective as of January first
			 following such June thirtieth. Dissolution of joint accounts will be allowed
			 only as of June thirtieth next succeeding the application therefor by the
			 member employers, and the first contribution rates based upon the separate
			 experiences shall be effective as of January first next following such June
			 thirtieth. When joint accounts are established by the administrator, the
			 employers concerned shall continue to submit individually such reports and
			 contributions as are required of employers with individual merit rating
			 accounts. When two or more employers have a joint merit rating account, the
			 merit rating index computation for such account shall include only the
			 experience of those employers in the joint account who have been subject to the
			 provisions of the act for the whole of the preceding experience period. The
			 merit rating index computed for the joint account and the employer's
			 contribution rate, based upon such computation, shall apply only to the
			 employers in the joint merit rating account who have been subject to the
			 provisions of the act for the whole of the preceding experience
			 period.