Process Name:

Partial Experience Transfer

Role:

•      Employer

•      Agent

•      Internal User

Objective(s):

To process a partial experience transfer.

Before you begin:

•      Employer accounts must exist in SUITS.

•      The experience of an acquired business must be partially (under 100% and greater than 0%) transferred to the acquiring business.

What happens next:

•      An experience transfer has been completed with appropriate percentage and employer rate has been recalculated.

•      The employer account is made liable for transferred amount upon approval. The predecessor account is inactivated unless the experience transfer is a substantially all experience transfer (95% and higher percentage).

1. 

Begin with the appropriate entry point show in above scripts.

SUITS will display the Business Transfer Type screen of the Employer Business Transfer Maintenance Wizard (all triggers except employer registration) or the Employer Registration Wizard (employer registration only) depending on where the user initiated the experience transfer process.

Triggers include the following: Employer Registration (Successor), Account Maintenance Business Transfer (Predecessor, Successor, and any Change of Legal Entity), and Reinstate Account (Predecessor, Successor).

2. 

Select ‘Part’ for Question “Was All or Part of the business assumed or acquired?”

This is the question that distinguishes between a full and partial experience transfer. All is for a full; Part is for substantially all or partial transfers.

‘Part’ is equivalent to any percentage higher than 0 and less than 100. This will trigger the transfer of the acquired businesses experience once the experience transfer process is complete based on information provided in next step.

The percentage of the business assumed/acquired determines if a transfer is full, partial, or substantially all. Partial is any percentage greater than 0 and less than 100. Substantially all is never mentioned directly in the text of the software, but in the background process substantially all is considered percentages 95-under 100. The amount of the experience transferred will equate the percentage of the acquisition. For example, 50% partial acquisition results in acquiring business receiving 50% of the acquired business’s taxable wages and benefit charges.

When a partial transfer is considered a substantially all transfer, all experience (100%) from the acquired business is transferred to the acquiring business regardless of what percentage 95 and over is acquired.

For acquired businesses in tax class 12 or below, both parties must complete and sign the Portion Consent agreement prior to initiating experience transfer.

3. 

Enter date the acquisition became final in MM/DD/YYYY format or use the calendar icon to select the date.

4. 

Enter the name of the acquiring business.

5. 

Enter FEIN of the acquiring business.

6. 

Enter Employer Account ID of the acquiring business.

7. 

Enter the percentage of the business assumed/acquired.

This percentage is used to determine how much of the experience is transferred. In this case for a full transfer, 100% of UI tax information would transfer.

8. 

Select ‘Yes’ or ‘No’ for the question “Does the former owner/operator continue to have payroll or employees?”

This question determines whether the Predecessor business will remain an active employer or be changed to inactive in SUITS.

If yes, explain the type of business retained by the former owner/operator, and provide the business location in the provided box.

9. 

On the Transfer Types and Assets tab, Check all that apply concerning the merger, acquisition, or other change in ownership of the business.

10.

Click Common Ownership tab.

SUITS displays the Contact Ownership tab.

11.

Select ‘Yes’ or ‘No’ for question: “Is the current owner/operator the same or related by blood or marriage to the former owner/operator?”

If yes, enter the relationship to the former owner/operator in the text box provided.

12.

Click Contact Information tab.

SUITS displays the Contact Information tab.

13.

Enter the name of the person DEW should contact with question on this account in the First Name and Last Name text boxes.

14.

Enter the contact’s mailing address, telephone number, and email in the text boxes provided.

Must use a physical street address and not a PO Box for the contact’s mailing address.

15.

Click the Next button.

SUITS displays the Sale Information Verification screen.

16.

Verify information entered is correct by clicking each tab to read.

Make sure to click on each of the three tabs (Transfer Types and Assets, Common Ownership, and Contact Information) to verify all information is correct and all fields with a red asterisk are filled out completely. Click the Previous button to edit.

17.

Click the Next button.

•      SUITS displays the Confirmation screen.

•      SUITS saves the data.

•      SUITS submits the experience transfer request.

•      SUITS will create an action item and generate correspondence to the party that did not provide information.

•      SUITS creates the Review Experience Transfer Details Workflow, with acquiring business or acquired business information, for Internal User to research, verify and update as necessary during review.

•      SUITS updates the acquired and acquiring businesses based on business rules and marks the experience transfer as completed.

•      SUITS generates all necessary correspondences.

18.

Select Yes or No for the Question: “Was more than one business assumed/acquired by any part of your business or did your business assume/acquire any part of another business than the one just submitted on the same day?”

19.

Click the Finish button.

•      SUITS displays the Employer Home Page or Business Transfer Type Page based on required Y/N entry.

•      If Yes, SUITS displays the Business Transfer Type page.

•      If No, SUITS displays the Employer Home Page.

•      If the acquiring business completed the acquisition information, SUITS will create an action item and generate correspondence to the acquired business, if they exist in SUITS, notifying them to complete the acquired by information.

•      If the acquired business completed the acquired by information, SUITS will create an action item and generate correspondence to the acquiring business if they exist in SUITS, notifying them to complete the acquisition information.

•      When the acquired business or the acquiring business work on the action item, the workflow will be updated with the updated information.

•      If no response comes from the ‘60 day letter’, within the 60 days, the acquirer will be assigned a new employer rate, if the acquirer is not liable at the time of the acquisition.  If acquirer is already a liable employer at the time of the acquisition, it will keep its own rate. 

•      If response is successful from the ‘60 day letter’ and the acquired account is made up to date, the transfer is processed when a batch file determines that the acquired account is current.

•      See FAQs for more specific business rules regarding entitlement to experience transfer (ie: delinquencies for Class 12-below, 60 day process).