Successor employers
Sec. 6. (a) When:
(1) an employing unit (whether or not an employing unit at the
time of the acquisition) becomes an employer under
IC 22-4-7-2(a);
(2) an employer acquires the organization, trade, or business, or
substantially all the assets of another employer; or
(3) an employer transfers all or a portion of the employer's trade
or business (including the employer's workforce) to another
employer as described in IC 22-4-11.5-7;
the successor employer shall, in accordance with the rules prescribed
by the board, assume the position of the predecessor with respect to
all the resources and liabilities of the predecessor's experience
account.
(b) Except as provided by IC 22-4-11.5, when:
(1) an employing unit (whether or not an employing unit at the
time of the acquisition) becomes an employer under
IC 22-4-7-2(b); or
(2) an employer acquires a distinct and segregable portion of
the organization, trade, or business within this state of another
employer;
the successor employer shall assume the position of the predecessor
employer with respect to the portion of the resources and liabilities
of the predecessor's experience account as pertains to the distinct and
segregable portion of the predecessor's organization, trade, or
business acquired by the successor. An application for the acquiring
employer to assume this portion of the resources and liabilities of the
disposing employer's experience account must be filed with the
commissioner on prescribed forms not later than one hundred fifty
(150) days immediately following the disposition date or not later
than ten (10) days after the disposing and acquiring employers are
mailed or otherwise delivered final notice that the acquiring
employer is a successor employer, whichever is the earlier date. This
portion of the resources and liabilities of the disposing employer's
experience account shall be transferred in accordance with
IC 22-4-11.5.
(c) Except as provided by IC 22-4-11.5, the successor employer,
if an employer prior to the acquisition, shall pay at the rate of
contribution originally assigned to it for the calendar year in which
the acquisition occurs, until the end of that year. If not an employer
prior to the acquisition, the successor employer shall pay the rate of
two and seven-tenths percent (2.7%) unless the successor employer
assumes all or part of the resources and liabilities of the predecessor
employer's experience account, in which event the successor
employer shall pay at the rate of contribution assigned to the
predecessor employer for the period starting with the first day of the
calendar quarter in which the acquisition occurs, until the end of that
year. However, if a successor employer, not an employer prior to the
acquisition, simultaneously acquires all or part of the experience
balance of two (2) or more employers, the successor employer shall
pay at the highest rate applicable to the experience accounts totally
or partially acquired for the period starting with the first day of the
calendar quarter in which the acquisition occurs, until the end of the
year. If the successor employer had any employment prior to the date
of acquisition upon which contributions were owed under
IC 22-4-9-1, the employer's rate of contribution from the first of the
year to the first day of the calendar quarter in which the acquisition
occurred would be two and seven-tenths percent (2.7%).
(Formerly: Acts 1947, c.208, s.1007; Acts 1951, c.295, s.9; Acts
1955, c.317, s.5; Acts 1967, c.310, s.12; Acts 1969, c.300, s.2; Acts
1971, P.L.355, SEC.21; Acts 1975, P.L.252, SEC.1.) As amended by
P.L.20-1986, SEC.5; P.L.18-1987, SEC.36; P.L.21-1995, SEC.72;
P.L.98-2005, SEC.6.
Last modified: May 27, 2006