FAQs

Category	Question	Answer
SDDS	How do I create the SUTA Dumping Detection System (SDDS) files?	SDDS is completely outside the SUITS system. The only role SUITS has in this case, is that the SUITS database provides source data for the SDDS process, which is then processed in a separate application outside of SUITS. Once the files are downloaded from SDDS, SUITS automatically creates ‘Review Potential SUTA Dumping Investigation’ workflows for each employer/potential offender.
Ratings	What system events may trigger an automated rate calculation/assignment?	1. A new employer registration in submitted. Once SUITS has received the information contained in the registration regarding the employer’s UI eligibility and whether the employer is contributory or reimbursable, SUITS will use the information from the registration process to assign a rate (new employer rate for Contributory, 0% or 2% for Reimbursable). 2. If an employer elects to change reporting method, then SUITS will determine whether a new rate needs to be assigned. 3. If an inactive employer account is reinstated after four or more years of inactivity, SUITS will assign a new rate. 4. If there is an active lien filed against an employer account, SUITS will assign the current rate for Tax Class 20. 5. If an employer is eligible for the New Employer rate following an experience transfer, SUITS will assign a rate; if not, SUITS will calculate a rate based on the experience transfer. SUITS will also recalculate a rate based on a reversal of experience transfer in which the predecessor is inactivated. 6. If a liability date is changed, depending on the type of account, SUITS will assign a rate.
Ratings	What determines whether an employer is ineligible for a calculated UI tax rate and must have a rate manually assigned?	An employer’s UI tax rate will need to be assigned when they are an employer subject to and liable for unemployment insurance but have a special circumstance disallowing a system calculated rate such as, but not only including, the following: Employer is new, • Employer is new, • Employer is 2% Reimbursable, • Employer has an active lien, or • Employer was a reinstated account with charges in look back period.
Ratings	How are UI tax rates created for employers who are not eligible for a calculated UI tax rate?	1. SUITS receives a request for a rate assignment. 2. SUITS determines employer type and assigns rate. 3. SUITS assigns a UI tax rate.
Ratings	How are requests to recalculate an employer’s UI tax rate due to reversal of an experience transfer processed?	1. SUITS determines the effective date of the experience transfer to be reversed. 2. SUITS reinstates the rate that was calculated for the employer before the experience transfer occurred. 3. SUITS removes the experience transfer history that was previously transferred from the predecessor’s account.. 4. SUITS recalculates any tax due, interest, and penalties for affected years by quarter. 5. SUITS updates the employer account. If predecessor was closed as part of the acquisition, the account will be reinstated prior to SUITS adjustments.
Ratings	How are requests to recalculate an employer’s UI tax rate due to partial experience transfer processed?	1. SUITS retrieves the experience transfer percentage from each predecessor involved in the experience transfer. 2. SUITS calculates the taxable wages and benefits charged to transfer to the successor account based on the experience transfer percentage acquired. 3. SUITS adds the amounts to the successor taxable wages and benefits charged. 4. SUITS subtracts the amounts from the predecessor taxable wages and benefits charged. 5. SUITS determines if there are other predecessor accounts. 6. SUITS recalculates any tax due, interest, and penalties for affected years by quarter. 7. SUITS updates the employer account. If there are other predecessor accounts repeat step 2.
Experience Transfer	When must an employer notify DEW of an acquisition?	DEW must be notified of an acquisition within thirty (30) days of its occurrence. If not notified within 30 days, experience transfer will be held until the quarter after the notification. This number of days can be changed. If it is an untimely acquisition and the acquired business has a rating class of 12 or below at the time of the acquisition, and the acquirer is liable due to acquisition then rates are assigned based on all years from the year of acquisition to the current year.
Experience Transfer	What determines a Process Experience Transfer to be qualified as ‘Substantially All’?	The purchased business is between 95 and 99% acquired. When a business is acquired ‘substantially all,’ the entire experience (100%) is transferred from the acquired business to the acquiring business account. Both accounts remain open after the transfer is complete.
Experience Transfer	How do delinquencies affect entitlement to experience transfer, or Why would an experience transfer not complete due to existing delinquencies?	If an experience transfer is requested and there is debt or delinquency on the part of the acquired business, the acquisition may continue to proceed, but the employment experience of the acquired business will NOT be transferred and will not be used when calculating the acquirer’s experience rate until the debt or delinquency is satisfied. If the acquired business has a rate class of 12 or below, for the acquisition year, the experience transfer will not occur until all reports are submitted, including the final wage report quarter and there is a zero balance. If the acquired business has a rate class of 12 or below, for the acquisition year, then the experience transfer will not occur at all at the end of the 60 day process if all delinquencies are not satisfied. If class 13 or higher, the transfer will not be denied and no ’60-day letter’ will be sent.
Experience Transfer	What is the ‘60-Day letter’?	Correspondence is automatically generated to the acquirer if there is debt or delinquency on the part of the acquired business in the form of a ‘60 day letter.’ This letter gives the acquirer a 60-day window to clear the delinquency and/or debt to allow the experience to transfer for tax class 12 or lower. If the acquired business has a rate class of 12 or below for the acquisition year, the 60-day process begins at the time of processing the acquisition if delinquent reports or payments exist. If the rate class is 13 or higher and the final wage report quarter = wage report for quarter of acquisition, the transfer will not be denied and no ‘60 day letter’ will be sent. The transfer will be held until the final wage report quarter is submitted or becomes delinquent.
Experience Transfer	What happens when delinquencies are NOT meet by the end of the 60-day process?	If no response comes from the ‘60 day letter’, within the 60 days, the acquirer will retain the current rate without benefit of any potential experience transfer. If the acquirer is already a liable employer at the time of the acquisition, it will keep its current rate.
Experience Transfer	What happens when delinquencies are meet by the end of the 60-day process?	If the outstanding delinquencies or debts are resolved within the 60-day window, the transfer is processed when a batch file determines that the acquired account is current. If the delinquent reports and/or the debt payments are paid in full within 60 days, rates will be recalculated to include any experience transfer taxable wages and benefit charges that are calculated by SUITS.
Experience Transfer	How are requests to recalculate an employer’s UI tax rate due to reversal of an experience transfer processed?	1. The system determines the effective date of the experience transfer to be reversed. 2. The system reinstates the rate that was calculated for the employer before the experience transfer occurred. 3. The system removes the experience transfer history that was previously transferred from the predecessor’s account. 4. The system recalculates any tax due, interest and penalties for affected years by quarter. 5. The system updates the employer account.
Experience Transfer	How are requests to recalculate an employer’s UI tax rate due to partial experience transfer processed?	1. The system retrieves the experience transfer percentage from each predecessor involved in the experience transfer. 2. The system calculates the history of taxable wages and benefits charged to transfer to the successor account based on the percentage acquired. 3. The system adds the amounts to the successor’s history of taxable wages and benefits charged. 4. The system subtracts the amounts from the predecessor’s history of taxable wages and benefits charged. 5. The system determines if there are other predecessor accounts. 6. The system recalculates any tax due, interest and penalties for affected years by quarter. 7. The system updates the employer account. If there are other predecessor accounts repeat step 2.