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Texas Statutes (Last Updated: January 4, 2014) |
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LABOR CODE |
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Title 4. EMPLOYMENT SERVICES AND UNEMPLOYMENT |
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Subtitle A. TEXAS UNEMPLOYMENT COMPENSATION ACT |
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Chapter 204. CONTRIBUTIONS |
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Subchapter E. ACQUISITION OF EXPERIENCE-RATED EMPLOYER |
Sec. 204.085. CONTRIBUTION RATE FOR SUCCESSOR EMPLOYERS WHEN SUBSTANTIALLY COMMON MANAGEMENT OR CONTROL OR SUBSTANTIALLY COMMON OWNERSHIP EXISTS; CERTAIN PARTIAL ACQUISITIONS
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(a) Except as provided by Subsection (d), in the case of a partial acquisition for which the transfer of compensation experience is required under Section 204.083, if the commission determines that the part of the organization, trade, or business transferred is definitely identifiable and segregable and that compensation experience can be specifically attributed to that part of the organization, trade, or business, the contribution rate of the successor must be computed:
(1) based on the successor employing unit's experience for the part of the organization, trade, or business that was not acquired by the transfer; and
(2) as provided by this section for the part of the organization, trade, or business acquired through the transfer.
(b) A successor employing unit that acquires compensation experience under Section 204.083 and is an experience-rated employer on the date of the acquisition shall pay contributions from the date of the acquisition until the end of the calendar year in which the acquisition occurred at a rate computed by using the compensation experience transferred from the predecessor employer and that of the successor employing unit.
(c) A successor employing unit that acquires compensation experience under Section 204.083 and is not an experience-rated employer on the date of the acquisition shall pay contributions from the date of the acquisition until the end of the calendar year at the highest rate applicable at the time of the acquisition to any predecessor employer who is a party to the acquisition.
(d) If the commission determines that the transfer was accomplished solely or primarily for the purpose of obtaining a lower contribution rate, the successor's contribution rate must be determined under Section 204.006.