Section 0800-10-03-.12 - SUCCESSORSHIPS AND MERGERS(1) T.C.A. Section 50-7-403(b)(2) states, "In the event of a successorship or merger of employers or employing units, and the combined or successor employer is a new entity, the combined taxable payroll, benefit and premium experience of the employers or employing units involved shall be computed as of the effective date of successorship or merger to determine a new reserve ratio and premium rate applicable to said combined or successor employer."(2)(a) "In the event that any employing unit subsequent to January 1, 1951, acquires or has acquired a distinct, severable, identifiable and segregable portion of the business of an employer and continues or has continued such an acquired portion of the business of the predecessor, the successor shall succeed to that part of the taxable payroll, benefit and premium experience of the predecessor which is attributable solely to that portion of the business which was acquired."(b) Pursuant to this provision, the method by which the payroll and benefit experience attributable solely to the portion of the business transferred shall be computed as follows: 1. If the Department has maintained a separate account of the payroll and benefit experience of the acquired portion of the business of the predecessor, all experience shown by such account shall be transferred to the account of the successor.2. If the Department has not maintained a separate account of payroll and benefit experience of the acquired portion of the business of the predecessor, the successor employer shall assume the portion of such employer with respect to the resources and liabilities of such reserve account in proportion to the extent of such succession or acquisition as agreed upon by the parties in interest and approved by the Department.(3) The transfer percentage when used to divide premiums paid by the predecessor shall also be used to divide charges for benefits paid as a result of the taxable wages on which the premiums were paid, even though such benefits are paid after the distinct, severable , identifiable and segregable portion of the business has been transferred from the predecessor to the successor.(4) Where a total or partial transfer of payroll and benefit experience under T.C.A. Section 50-7-403(b)(2) occurs on some date, other than the end of a calendar quarter, the predecessor employer will submit required reports covering the predecessor employer's operations from the beginning of the calendar quarter to the date of the transfer. The successor employer will submit required reports covering the successor employer's operations from the date of the transfer to the end of the calendar quarter.(5)(a) If either or both employers are corporations, the request shall be signed by an officer of each or both corporations.(b) If either or both employers are partnerships or other unincorporated units the requests shall be signed by responsible and duly authorized members having knowledge of their affairs and, if the partnerships or other unincorporated units have managers or chief executive officers, by such managers or chief executive_officers.(c) If either or both employers are individuals, the request shall be signed by the individuals.Tenn. Comp. R. & Regs. 0800-10-03-.12
Original rule certified May 17, 1974. Amendment filed January 2, 1975; effective February 1, 1975. Repeal and new rule filed January 22, 1996; effective May 30, 1996. Amendment filed May 22, 2001; effective September 28, 2001. August 15, 2009, the Secretary of State transferred 0560-02-03 to 0800-10-03 per Chapter 520 of Public Acts of 1999 and T.C.A. 4-5-221(a)(1).Authority: T.C.A. §§ 50-7-602 and 50-7-603.