(A) For the purposes of this section and for tax years 2010 and prior, "debit balance" means the excess of total benefits charged over total contributions made.

(B) For acquisitions that occur in tax years 2010 and prior, no transfer of experience rating accounts, in whole or in part, is permitted under the provisions of Sections 41-31-100 through 41-31-130 unless all unemployment compensation taxes based on wages paid by the transferring employer prior to the date of the transfer are paid by the transferring employer when due or assumed by the acquiring employer within sixty days from the date he is notified by the department that the transfer cannot be allowed because of unpaid unemployment compensation taxes. If the experience rating account of the predecessor employer contains a debit balance, the experience rating account of the predecessor employer in any event must be transferred to the successor employer in accordance with the provisions of Sections 41-31-100 and 41-31-120.

(C) Effective for acquisitions occurring in tax years 2011 and later, no transfer of benefit charges or taxable wages, in whole or in part, is permitted pursuant to the provisions of Sections 41-31-100 through 41-31-130 unless all unemployment compensation taxes based on wages paid by the transferring employer prior to the date of transfer are paid by the transferring employer when due or assumed by the acquiring employer within sixty days from the date he is notified by the department that the transfer cannot be allowed because of unpaid unemployment compensation taxes or outstanding contribution reports. If the predecessor employer has an acquisition year tax class of thirteen or higher, the experience of the predecessor employer in any event must be transferred to the successor employer in accordance with the provisions of Sections 41-31-100 and 41-31-120.

HISTORY: 1962 Code Section 68-185.1; 1952 (47) 1891; 1966 (54) 2640; 1986 Act No. 361, Section 3, eff April 3, 1986; 2010 Act No. 234, Section 1, eff January 1, 2011; 2011 Act No. 63, Section 8, eff June 14, 2011.

Effect of Amendment

The 1986 amendment made grammatical changes and added the provision relative to the time within which unemployment compensation taxes must be assumed by the acquiring employer.

The 2010 amendment added subsection (A) relating to the definition of "debit balance"; added subsection identifier (B); and in subsection (B) substituted "department" for "Commission" in the first sentence, and in the second sentence deleted the parenthetical definition of "debit balance".

The 2011 amendment in subsection (A) inserted "and for tax years 2010 and prior", in subsection (B) substituted "For acquisitions that occur in tax years 2010 and prior, no" for "No", and added subsection (C) relating to acquisitions occurring in tax years 2011 and later.