Section 8 AAC 85.292 - Contribution rate for successor employer in business(a) To determine if a business was acquired or transferred solely or primarily for the purpose of obtaining a more favorable rate of contributions under AS 23.20.295 or 23.20.297, the department shall use objective factors on a case by case basis, including (1) the cost of acquiring the business;(2) whether the successor employer continued essentially the same business activity as the predecessor employer;(3) how long the same business activity was continued;(4) whether the successor employer hired a substantial number of new employees for performance of duties unrelated to the business activity before the acquisition; and(5) whether there was a continuity of control of the business.(b) For the purposes of this section, continuity of control will be considered to exist if one or more persons, businesses, or organizations controlling a business remain in control after an acquisition or change in form. Evidence of continuity of control includes(1) ownership of the organization conducting the business;(2) ownership of assets necessary to conduct the business;(3) security arrangements or lease arrangements covering assets necessary to conduct the business, or a contract when the ownership, stated arrangements or contract provides for or allows direction of the internal affairs or conduct of the business.Eff. 3/25/2007, Register 181Authority:AS 23.20.045
AS 23.20.295
AS 23.20.297