Section 1051-1 - Reserve Account Transfer -Definitions(a) An acquisition of a business as used in Sections 1051 and 1052 of the code occurs through: (4) Except as provided in Section 135.1 of the code, any other transaction that causes substantially all property used in a business by one employer to be obtained by another employer.(b) An "organization, trade or business" as used in Section 1051 of the code is acquired if an employing unit acquires factors of an employer's organization, trade or business sufficient to constitute an entire existing going business unit as distinguished from the acquisition of merely dry assets from which a new business may be built. The question of whether an organization, trade or business is acquired is determined from all the factors of the particular case. Among the factors to be considered are:(1) The place of business.(2) The staff of employees.(7) The accounts receivable.(8) The tools and fixtures.(c) "A substantial reduction in personnel" as used in Section 1051 of the code occurs when the number of employees employed by the successor is less than 75 percent of the number of employees employed by the predecessor, if the number of employees employed by the predecessor was 10 or more. If the predecessor employed less than 10 employees, the question of whether there was a substantial reduction in personnel is dependent upon all of the circumstances of the particular case.(d) "Substantially all of the assets" as used in Section 1051 of the code are acquired if an employing unit acquires the assets of any employer which support substantially all of the employment, except those retained incident to the liquidation of obligations.(e) A "distinct and severable portion" as used in Section 1051 of the code is acquired if an employing unit acquires factors of any employer's organization, trade or business sufficient to constitute an existing separable going business unit as distinguished from the acquisition of merely dry assets from which a new business may be built. The question of whether a distinct and severable portion is acquired is determined from all the factors of the particular case. Among the factors to be considered are:(1) The place of business.(2) The staff of employees.(7) The accounts receivable.(8) The tools and fixtures.(f) "Successor employer" as used in Section 1052 of the code and Section 1052-1 of these regulations means an employing unit which under Section 675 of the code: (1) Became an employer prior to the date of acquisition; or(2) Becomes an employer solely on the basis of employment in the operation of the acquired business on or before the end of the calendar quarter immediately succeeding the calendar quarter in which the acquisition occurred.(g) "Transfer computation date" as used in Sections 1051-2 and 1052-1 of these regulations means the computation date (June 30th) immediately preceding the rating period (calendar year) in which the acquisition occurred.(h) "Transfer percentage" as used in Section 1052-1 of these regulations means the quotient obtained by dividing the taxable pay rolls of the severable portion in the three calendar years (or such lesser period as the severable portion may have been in operation) immediately preceding the transfer computation date by the taxable pay rolls of the predecessor for such three-year period (or such lesser period as the severable portion may have been in operation).Cal. Code Regs. Tit. 22, § 1051-1
1. Amendment filed 8-5-60; designated effective 8-15-60 (Register 60, No. 17).
2. Amendment of NOTE filed 11-20-81; effective thirtieth day thereafter (Register 81, No. 47).
3. Repealer and new section filed 11-25-96; operative 12-25-96 (Register 96, No. 48). Note: Authority cited: Sections 305 and 306, Unemployment Insurance Code. Reference: Sections 1051, 1052 and 1053, Unemployment Insurance Code.
1. Amendment filed 8-5-60; designated effective 8-15-60 (Register 60, No. 17).
2. Amendment of NOTE filed 11-20-81; effective thirtieth day thereafter (Register 81, No. 47).
3. Repealer and new section filed 11-25-96; operative 12-25-96 (Register 96, No. 48).