Md. Code Regs. 09.32.01.22

Current through Register Vol. 51, No. 12, June 14, 2024

Section 09.32.01.22 - Transfer of Operations from Another State

A. The transfer of a business from another state to this State within the meaning of the Unemployment Insurance Law occurs only when an operation maintained by an employing unit in another state has been closed, discontinued, or curtailed, in whole or in part, and that same operation is transferred into Maryland. The opening of new branches, new offices, or new retail outlets in this State does not constitute a transfer.

B. In order to invoke the provisions of the Unemployment Insurance Law relating to an employer who transfers operations from another state in which the employer has had at least 3 years experience immediately preceding the transfer to this State, the employer shall submit the following on forms prescribed by the Secretary:

(1) Within 120 days of the transfer, written notice specifying the nature of the operations transferred and the state in which they were previously performed.

(2) Within 60 days from the date of this notice, a certification from the unemployment insurance agency of the state from which the employer's operations were transferred certifying all information required by the Unemployment Insurance Law for calculating an earned rate in this State, and any other additional information required by the Secretary. The certificate shall include information identifying wages paid in the other state together with the employer's annual payrolls and benefit charges as defined in the Unemployment Insurance Law, for the 3 years immediately preceding this computation date as defined in the Unemployment Insurance Law.

(3) Upon the request of the Secretary, a certification from the other state containing all the information that the Secretary requires relating to benefit charges for the 12 consecutive month period preceding each subsequent computation date on the basis of wages paid in the other state. When this information is required, the employer shall furnish it not later than 60 days after the Secretary's request.

C. If the employer meets the conditions of this regulation, wages, remuneration, contributions, and benefits resulting in earned rate charges in connection with the transferred operations shall be deemed to have been paid in this State for the purpose of the Unemployment Insurance Law.

D. Remuneration for services paid to employees in another state may not be considered wages with respect to any fiscal year for the purposes of this regulation or the provisions of the Unemployment Insurance Law unless the contributions due on the remuneration have been paid before the computation date for contribution rates in this State.

Md. Code Regs. 09.32.01.22

Regulations .22, Obligations of Employers, adopted effective June 24, 1991 (18:12 Md. R. 1340)
Regulation .22B amended effective November 23, 1992 (19:23 Md. R. 2042)