Louisiana Administrative Code › Title 40 - LABOR AND EMPLOYMENT › Part IV - Employment Security › Subpart 1 - Board of Review › Chapter 3 - Employment Security Law › Section IV-347 - Transfer of Experience-Rating Record to Successor Where Segregable and Identifiable Part or Portion of the Business Is Acquired

Current through Register Vol. 50, No. 6, June 20, 2024
A. The transfer of experience-rating records
				  to employers who acquired a segregable and identifiable portion of a
				  predecessor's business within the meaning of
				  R.S.
				  23:1539 shall be affected on the following
				  basis.
1. Where the business or unit acquired
				  can be completely segregated and identified during the entire period of its
				  existence, the total payroll and experience-rating record attributable thereto
				  shall be transferred to the successor. In this event the only payroll and
				  experience rating records subject to transfer to the successor are those which
				  are actually segregated and identified.
2.
a. If
				  the business or unit acquired cannot be segregated and identified during the
				  entire period of its existence, the predecessor and/or the partial successor
				  will provide to the administrator the percentage of the operation that was
				  transferred to the partial successor. The percentage must be agreed upon by
				  both the predecessor and the partial successor. This percentage may be
				  determined by dividing the taxable payroll attributed to the portion acquired
				  for three complete fiscal years prior to the acquisition or the number of years
				  the predecessor was in operation prior to acquisition up to three years, by the
				  total payroll attributed to the predecessor operation for the same period of
				  time.
b. The percentage will be
				  applied to the predecessor's total taxable payroll and reserve to determine the
				  taxable payroll and reserve that will be transferred to the partial
				  successor.
c. The names and Social
				  Security numbers of the individuals transferred to the successor, including any
				  employees terminated at the time of the acquisition, must be provided to the
				  administrator and agreed upon by both the predecessor and partial
				  successor.
d. If any of the above
				  agreements are not received in writing within 90 days from the date of the
				  partial acquisition, the requirements for partial transfer of payroll records
				  to the partial successor have not been met, and none will be
				  transferred.
3.
				  Determining the Tax Rates for Partial Successors When the Information Is
				  Received on a Timely Basis, within 90 Days from the Date of Acquisition. If the
				  successor was not an employer at the time of acquisition, his rate for the
				  balance of the then current contribution year shall be the same as that
				  assigned to his predecessor for said year. If the successor was an employer
				  prior to the date of acquisition, his rate of contribution for the period from
				  such date to the end of the then current contribution year shall be the same as
				  his rate with respect to the period immediately preceding the date of
				  acquisition.
4. Determining the Tax
				  Rates for Partial Successors When the Information Has Not Been Provided on a
				  Timely Basis within 90 Days from Date of Acquisition
a. If the partial successor was not a subject
				  employer at the time of acquisition, his rate for the balance of the then
				  current contribution year shall be the new employer rate or the predecessor
				  rate, whichever is higher.
b. If
				  the partial successor was an employer prior to date of acquisition, his rate of
				  contribution for the period from such date to the end of the then current
				  contribution year shall be the same as his rate with respect to the period
				  immediately preceding the date of acquisition.
5. If an employer has more than one partial
				  succession in a calendar year, the aforementioned procedure will be applied in
				  each case.
6. Partial successors
				  who have not been assigned a tax rate prior to acquisition will be assigned the
				  new employer tax rate or the predecessor's tax rate, whichever is higher,
				  during the 90-day period subsequent to the partial acquisition. Once the proper
				  tax rate is determined, however, it will be applied retroactively.
7. The agency may perform an audit to
				  determine the percentage of taxable payroll and reserve that will be
				  transferred to the partial successor if the administrator finds it necessary to
				  do so.
8. In determining whether or
				  not the unit, or portion of the business acquired by the successor, is
				  segregable and identifiable, each case should be separately considered and
				  analyzed. If the payroll and experience-rating records of the unit, or portion
				  of the business acquired, can be broken down and segregated to permit the
				  proper crediting of wages, contribution of payments and the charging of
				  benefits, as provided in this regulation, the requirements of the law shall be
				  considered as having been fully met. The employer will be required to furnish
				  such additional analysis of his payroll records as may be required in order
				  that proper segregation may be made.