ARM 24.40.1511

24.11.2205 EXPERIENCE-RATING RECORD TRANSFER (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.