Section 646IAC5-2-7. Transfers of Indiana operations

   (a) An employing unit, whether or not an employer at the time of transfer, that:

(1) acquires all or a portion of an employer's trade or business (including the employer's workforce), which results in the continuance of an organization, trade, or business; or

(2) merges, incorporates, or reorganizes the employing unit's business;

immediately qualifies as a covered employer under IC 22-4 and assumes the position of the predecessor with respect to all the resources and liabilities of the predecessor's experience account. In order for this section to be applicable, the transfer must result in a substantial change in ownership and management. The successor/acquirer must complete State Form 2837 (Report to Determine Status), and the predecessor/disposer must complete State Form 46799 (Report of Transfer – Complete Sale). The deadline for filing is the earlier of thirty (30) days from the dispositions date or ten (10) days from a request for information by the department.

  (b) An employing unit, whether or not an employer at the time of transfer, that:

(1) purchases a distinct and segregable portion of an organization, trade, or business; and

(2) retains employees of that business;

will be entitled to consider the wages reported by the predecessor/disposer when computing the tax base per employee, per calendar year. The predecessor/disposer must transfer a proportionate portion of its experience balance, and the merit rate, to the successor/acquirer. This must be done by the earlier of thirty (30) days from the date of disposition or not later than ten (10) days after notification from the department. The employers must complete State Form 23299 (Report of Transfer-Partial Sale). Failure to complete this form may result in a department-mandated flat fifty percent (50%) transfer of the disposer's experience balance to the acquirer's experience balance. (Department of Workforce Development; 646 IAC 5-2-7; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA)