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(1) When a new business entity is formed and it acquires assets, employees, business, organization, or trade from another employer, the new business entity is classified as a successor employer. The procedures for transferring an employer's experience-rating record are described in 39-51-1219, MCA. For purposes of this rule, predecessor employer and successor employer are used in the same manner and have the same meaning as those terms have in 39-51-1219, MCA.

(2) Except as otherwise provided in this rule, an application for transferring the experience-rating record is automatically sent to the successor employer if, within 90 days of the change of ownership, the department discovers that an account involves a predecessor employer.

(3) An experience-rating record is automatically transferred from the predecessor employer to the successor employer if both employers are under substantially common ownership, management, or control. An experience-rating record includes the amount of contributions paid, benefits charged, and taxable wages reported.

(a) Substantially common ownership, management, or control is present when a person serves in any of the following positions for both the predecessor and successor:

(i) sole proprietor (includes spouse, children, and parents of sole proprietor);

(ii) partner of a partnership;

(iii) member of a limited liability company;

(iv) chief executive officer;

(v) chief financial officer;

(vi) any corporate officer;

(vii) any shareholder owning, directly or indirectly, more than 50 percent of a corporation's stock; or

(viii) board members.

(4) A request for transfer of the experience-rating record may be approved if:

(a) all delinquent reports are filed;

(b) all past due taxes are satisfied; and

(c) the successor employer files an employer registration form as provided in ARM 24.11.2005.

(5) A transfer of the experience-rating record between a professional employer organization and its client is not allowed unless the client and the professional employer organization have common ownership, management, or control.


History: 39-8-201, 39-51-301, 39-51-302, MCA; IMP, 39-8-201, 39-51-1219, MCA; NEW, 1988 MAR p. 2723, Eff. 1/1/89; AMD, 1995 MAR p. 1950, Eff. 10/1/95; TRANS, from Dept. of Labor and Industry and AMD, 2001 MAR p. 1650, Eff. 8/24/01; TRANS, from Dept. of Revenue and AMD, 2004 MAR p. 2808, Eff. 11/19/04; AMD, 2006 MAR p. 2411, Eff. 10/6/06; AMD, 2018 MAR p. 638, Eff. 4/1/18.

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