South Carolina Code of Regulations › Chapter 47 - DEPARTMENT OF EMPLOYMENT AND WORKFORCE › Article 2 - GENERAL REGULATIONS › Section 47-39 - Joint Account

Current through Register Vol. 48, No. 6, June 28, 2024
A. Two or more
			 "employers" as defined in Section
			 41-27-200, South
			 Carolina Code of Laws, 1976, as amended, in the same or a related trade,
			 occupation, profession, or enterprise, or having a common financial interest,
			 hereinafter referred to as an "Employer Group," may enter into an agreement
			 with the Department to establish a joint experience rating account as provided
			 in Section
			 41-31-20;
			 subject to the provisions of Article 1 of Chapter 31 of Title 41 of the 1976
			 Code--Rates of Contribution; shall be treated as a separate employer account
			 and subject to the following provisions:
1. A
			 joint account may not be established for a period of less than five (5) years
			 beginning with the first day of the calendar year in which such application for
			 the establishment of such account is approved by the Department.
2. The contribution rate for an "employer
			 group" shall be computed as of June 30 or December 31 based upon the date of
			 approval by the Department. Approvals between January 1 and June 30 will be
			 computed as of June 30; approvals between July 1 and December 31 will be
			 computed as of December 31. This rate will be applicable for the subsequent tax
			 year. Such computation shall be based upon the aggregate experience rating of
			 all the members of the group for the applicable rate computation time
			 period.
3. No "employer" may become
			 a member of an "employer group" until such employer has satisfied the provision
			 of Section
			 41-31-40
			 ( twelve (12) months of accomplished liability ).
4. Separate accounts shall be maintained for
			 each employer in an "employer group" for identification, with such separate
			 accounts being combined only for the purpose of establishing a joint experience
			 rate.
5. No "employer group" shall
			 have a reduced contribution rate when an execution for unpaid contributions is
			 outstanding against one or more members of the "employer group."
6. If a member of an "employer group"
			 acquires the business of an employer, the experience of the predecessor
			 employer shall be transferred to the separate account of the acquiring
			 employer. The provision of Section
			 41-31-100
			 or Section
			 41-31-110
			 as applicable shall apply to the "employer group" in accord with Sub-Item
			 thereof.
7. All members of an
			 "employer group" shall remain members until the dissolution thereof. This
			 provision shall also apply to a successor who acquires the business of a member
			 of an "employer group," provided however, if for any reason the business of a
			 member of an "employer group" is discontinued, or if the liability of a member
			 is terminated in accord with Chapter 37 of Title 41 of the 1976 Code, the
			 experience in the account of the discontinued business shall remain a part of
			 the experience of the "employer group" until the next rate
			 computation.
8. An "employer group"
			 may be dissolved and the joint account distributed in accord with Section
			 41-31-120
			 on the next regular computation date:
a. by 50
			 per cent or more of the employers in the "employer group" each of which has at
			 least five (5) percent of the total wages on the date of the
			 dissolution.
b. Each member of the
			 "employer group" thus dissolved will be considered for the purposes of Section
			 41-31-120
			 as the successor to his own business and the employer group will be treated as
			 the predecessor.
c. In the event
			 the experience of any member of the "employer group" was retained as a part of
			 the experience of the "employer group" upon the discontinuance of business or
			 termination of liability in accord with Chapter 37 of Title 41 of the 1976
			 Code, the experience account of such an employer upon dissolution of the group:
i. will be inactivated if the employer ceased
			 to do business;
ii. will be
			 canceled if the employer terminated liability.
9. Each member of an "employer group" will be
			 responsible for keeping the records and filing the reports required by the
			 Department with respect to individuals in its employment. Every member of the
			 "employer group" shall be liable individually or collectively for all past due
			 penalties, contributions, and interest of any member and shall be subject to
			 the provisions of Article 3 of Chapter 31 of Title 41 of the 1976
			 Code.
10. Benefits paid, chargeable
			 to a member of an "employer group" shall be used in computing the experience
			 rate of the "employer group;" however, only the employer to whom benefits are
			 chargeable shall have the right of appeal in accord with the appeals provisions
			 in Article 5 of Chapter 35 of Title 41 of the 1976 Code.
11. No provision in Section
			 41-31-20 or
			 in this regulation issued pursuant thereto shall be construed as giving any
			 member of an "employer group" any authority over the operation of another
			 member with respect to the administration of the joint "employer group"
			 account.