Transfers solely to obtain lower employer contribution rate
Sec. 8. (a) If the department determines that an employing unit or
other person that is not an employer under IC 22-4-7 at the time of
the acquisition has acquired an employer's trade or business solely
for the purpose of obtaining a lower employer contribution rate, the
employing unit or other person:
(1) may not assume the experience rating of the predecessor
employer for the resources and liabilities of the predecessor
employer's experience account that are attributable to the
acquisition; and
(2) shall pay the applicable contribution rate as determined
under this chapter.
(b) In determining whether an employing unit or other person
acquired a trade or business solely for the purpose of obtaining a
lower employer contribution rate under subsection (a), the
commissioner shall consider the following:
(1) The cost of acquiring the trade or business.
(2) Whether the employing unit or other person continued the
business enterprise of the acquired trade or business.
(3) The length of time the employing unit or other person
continued the business enterprise of the acquired trade or
business.
(4) Whether a substantial number of new employees were hired
to perform duties unrelated to the business enterprise that the
trade or business conducted before the trade or business was
acquired.
(c) If the commissioner makes an initial determination that a
violation of this chapter has occurred, the commissioner shall
promptly refer the matter to an administrative law judge for a hearing
and decision under this article.
As added by P.L.98-2005, SEC.9.
Last modified: May 27, 2006