DWD 115.03(3) (3) The department may use any other relevant information, however obtained, in order to make a determination regarding a business transfer under this section. Under ss. 108.14 (2) and (2m) and 108.21, Stats., the department may, at any reasonable time, inspect the work records and any other records of an employing unit, or of any entity which the department has reason to believe may be an employing unit, which may show payments for personal services so that the department may determine the status and contribution liability of the employing unit or entity under ch. 108, Stats.
DWD 115.03(4) (4) The department may issue determinations, computations, re-computations and appeal tribunal decisions as necessary under ss. 108.09 and 108.10, Stats., in connection with any issue arising under this chapter.
DWD 115.03 History History: Cr. Register, January, 1992, No. 433, eff. 2-1-92.
DWD 115.04 DWD 115.04 Transferee as successor; non-successor transferee.
DWD 115.04(1)(1) Standard for successor. The transferee becomes a successor under s. 108.16 (8), Stats., if:
DWD 115.04(1)(a) (a) A transfer of business has occurred under s. DWD 115.01; and
DWD 115.04(1)(b) (b) The department finds successorship status under s. DWD 115.05 or 115.06, or the transferee requests successorship status under s. DWD 115.07.
DWD 115.04(2) (2)Non-successor transferee. If the transferee is not a successor under sub. (1), s. DWD 115.11 applies.
DWD 115.04 History History: Cr. Register, January, 1992, No. 433, eff. 2-1-92.
DWD 115.05 DWD 115.05 Mandatory successor. The department shall find that a transferee is a mandatory successor under s. 108.16 (8) (e), Stats., if the business transfer satisfies s. DWD 115.01 and if:
DWD 115.05(1) (1) At the time of business transfer, the transferor and the transferee are owned or controlled in whole or in substantial part under s. DWD 115.08, either directly or indirectly by legally enforceable means or otherwise, by the same interest or interests under s. DWD 115.08;
DWD 115.05(2) (2) The transferee has continued or resumed the business of the transferor either in the same establishment or elsewhere, or the transferee has employed substantially the same employees under s. DWD 115.08 as those the transferor had employed in connection with the business transferred; and
DWD 115.05(3) (3) The same financing provisions under s. 108.15, 108.151 or 108.18, Stats., apply to the transferee as applied to the transferor on the date of the transfer.
DWD 115.05 History History: Cr. Register, January, 1992, No. 433, eff. 2-1-92.
DWD 115.06 DWD 115.06 Transfers involving fiduciaries.
DWD 115.06(1)(1) Transfer to a fiduciary. The department shall find that a transferee is a mandatory successor under s. 108.16 (8) (c), Stats., if:
DWD 115.06(1)(a) (a) The transferee is a legal representative, trustee in bankruptcy or a receiver or trustee of a person, partnership, association or corporation, or a guardian of the estate of a person, or legal representative of a deceased person;
DWD 115.06(1)(b) (b) The transferee has continued or resumed the business of the transferor, either in the same establishment or elsewhere, or the transferee has employed substantially the same employees under s. DWD 115.08 as those the transferor had employed in connection with the business transferred; and
DWD 115.06(1)(c) (c) The same financing provisions under s. 108.15, 108.151 or 108.18, Stats., apply to the transferee as applied to the transferor on the date of the transfer.
DWD 115.06(2) (2)Transfer from a fiduciary. If the business of a successor employer specified in sub. (1) is transferred, the transferee is deemed a successor under s. 108.16 (8) (d), Stats., if the transferee would have been a successor under s. DWD 115.04 except for the intervening existence of the successor employer under sub. (1).
DWD 115.06 History History: Cr. Register, January, 1992, No. 433, eff. 2-1-92.
DWD 115.07 DWD 115.07 Optional successor.
DWD 115.07(1) (1) Standard. A transferee may elect to become a successor under s. 108.16 (8) (b), Stats., if the business transfer satisfies s. DWD 115.01 and if:
DWD 115.07(1)(a) (a) The transfer included at least a transfer percentage of 25% of the transferor's total business as determined under s. DWD 115.09;
DWD 115.07(1)(b) (b) The same financing provisions under s. 108.15, 108.151 or 108.18, Stats., apply to the transferee as applied to the transferor on the date of the transfer;
DWD 115.07(1)(c) (c) The transferee has continued or resumed the business of the transferor either in the same establishment or elsewhere, or the transferee has employed substantially the same employees under s. DWD 115.08 as those the transferor had employed in connection with the business transferred; and
DWD 115.07(1)(d) (d) The department has received a timely written application from the transferee requesting successorship status.
DWD 115.07(2) (2)Written application; timely receipt; withdrawal.
DWD 115.07(2)(a)(a) The department shall consider as timely under sub. (1) (d) any written application from the transferee or its representative which is received by the department on or before: July 31 of the year in which the transfer date is January 1 to March 31; October 31 of the year in which the transfer date is April 1 to June 30; January 31 of the year following the year in which the transfer date is July 1 to September 30; and April 30 of the year following the year in which the transfer date is October 1 to December 31, unless par. (b) applies. The department shall accept a late application received no more than 90 days after its due date if the transferee satisfies the department that the application was late as a result of excusable neglect.
DWD 115.07(2)(b) (b) If the due date of the written application would otherwise be a Saturday, Sunday or legal holiday under state or federal law, the due date is the next following day which is not a Saturday, Sunday or legal holiday under state or federal law. The department shall also consider as timely any application which if mailed is either postmarked no later than the applicable due date or received by the department no later than 3 days after that due date.
DWD 115.07(2)(c) (c) The transferee may withdraw its application requesting successorship status if a written withdrawal is received by the department before the issuance of an initial determination regarding its application or within 21 days after issuance.
DWD 115.07 History History: Cr. Register, January, 1992, No. 433, eff. 2-1-92; CR 13-106: am. (2) (a) Register July 2014 No. 703, eff. 8-1-14.
DWD 115.08 DWD 115.08 Owned or controlled in substantial part; the same interest or interests; employed substantially the same employees.
DWD 115.08(1) (1) Owned or controlled in substantial part. The conditions of s. DWD 115.04 (1) are satisfied if 50% or more of both entities are owned or controlled, either directly or indirectly, by the same interest or interests.
DWD 115.08(2) (2)The same interest or interests. The department shall presume, unless shown to the contrary, that the same interest or interests includes the spouse, child or parent of the individual who owned or controlled the business, or any combination of more than one of them. To overcome the presumption that these are the same interest or interests, it must be established that:
DWD 115.08(2)(a) (a) Usual and customary sales procedures were followed;
DWD 115.08(2)(b) (b) All transactions were at fair market value and similar to those available to unrelated parties under similar circumstances;
DWD 115.08(2)(c) (c) The spouse, child or parent of the individual who owned or controlled the business was not employed by the business in the 12-month period prior to the transfer in a position in which he or she was able to make management decisions;
DWD 115.08(2)(d) (d) The individual who owned or controlled the business prior to the transfer has no ownership interest, either directly or indirectly, in the transferee; and
DWD 115.08(2)(e) (e) The individual who owned or controlled the business prior to the transfer is not employed by the transferee in a position in which he or she is able to make management decisions.
DWD 115.08(3) (3)Employed substantially the same employees. The conditions of s. DWD 115.05 (2), 115.06 (1) (b) or 115.07 (1) (c) that the transferee has employed substantially the same employees as those the transferor had employed are met if 50% or more of the employees employed by the transferor in connection with the business transferred work for the transferee.
DWD 115.08 History History: Cr. Register, January, 1992, No. 433, eff. 2-1-92.
DWD 115.09 DWD 115.09 Determining transfer percentage; minimum transfer percentage; estimating transfer percentage; applying transfer percentage.
DWD 115.09(1) (1) Determining transfer percentage. The transfer percentage is computed by dividing the payroll in the transferred portion of the transferor's business prior to the transfer date by the transferor's total payroll. The transfer percentage is not based on the number of employees taken over by the transferee, but rather on the payroll incurred in the transferred portion prior to the transfer date. The payroll for overhead and combined positions shall be allocated in the same proportion as the direct payrolls involved, or on such other reasonable basis as may better correspond with and reflect the facts of the transfer.
DWD 115.09(2) (2)Minimum transfer percentage. Optional successorship requires a minimum transfer percentage of 25%. Mandatory successorship does not require any minimum transfer percentage.
DWD 115.09(3) (3)Estimating the transfer percentage. When the transferor does not provide information at the department's request or the information provided is not sufficiently specific or accurate, the department shall estimate the transfer percentage based on the best available information.
DWD 115.09(4) (4)Applying the transfer percentage. For any partial transfer, whether optional or mandatory, the department shall:
DWD 115.09(4)(a) (a) Apply the transfer percentage to the positive or negative balance in the employer's account of the transferor as of the transfer date and to the appropriate June 30 balances of the transferor;
DWD 115.09(4)(b) (b) Apply the transfer percentage to the transferor's payroll prior to the transfer date as needed to correctly calculate the transferee's contribution rates; and
DWD 115.09(4)(c) (c) Transfer the amounts so calculated to the employer's account of the transferee.
DWD 115.09 History History: Cr. Register, January, 1992, No. 433, eff. 2-1-92.
DWD 115.10 DWD 115.10 Effects of successorship.
DWD 115.10(1)(1) Employer status.
DWD 115.10(1)(a)(a) A transferor which is no longer an employer after a transfer of business has occurred shall submit contribution reports and payments which may be outstanding on the date of transfer or which become due subsequent to that date for a quarter including the transfer date.
DWD 115.10(1)(b) (b) If not already an employer, a successor becomes an employer subject to ch. 108, Stats., on the date of transfer and is liable for contributions or payments in lieu of contributions, whichever is applicable, from that date.
DWD 115.10(2) (2)Transfer of employer's account balance.
DWD 115.10(2)(a)(a) Total successorship. When a transfer of business results in a total successorship, the successor shall take over and continue the transferor's account, including its positive or negative balance under s. 108.16 (8) (f), Stats.
DWD 115.10(2)(b) (b) Partial successorship. When a transfer of business results in a partial successorship, the successor shall take over and continue the transferor's account, including its positive or negative balance, in an amount determined by the transfer percentage under s. 108.16 (8) (f), Stats.
DWD 115.10(3) (3)Transfer of rate experience.
DWD 115.10(3)(a)(a) Successor not an employer at time of transfer. If the successor was not an employer at the time of transfer under ch. 108, Stats., the department shall assign to the successor, as of the date of transfer, the basic contribution rate assigned or assignable to the transferor on the date of transfer under s. 108.16 (8) (g), Stats. If there are several transfers of business on the same date of transfer to a single successor, the basic rate which will be assigned to the successor may not be higher than the highest basic rate which applied to any of the transferors of which the transferee is a successor for the year in which the transfer occurred.
DWD 115.10(3)(b) (b) Successor an employer at time of transfer. If the successor was an employer at the time of transfer under ch. 108, Stats., the successor shall retain the assigned rate for the calendar year of the transfer. For subsequent years as required by s. 108.18, Stats., the department shall assign a rate which reflects the combined experience of the transferor and successor. For the purposes of s. 108.18, Stats., the department shall determine the experience of the successor's account by allocating to that account the respective proportions of the transferor's payroll and benefits properly assignable to the business transferred.
DWD 115.10(4) (4)Payroll base. For the calendar year of the transfer, employment in the transferred business becomes employment performed for the successor under s. 108.16 (8) (i), Stats. The successor shall compute exclusions in excess of the payroll base as though only one employer existed for that entire year.
DWD 115.10(5) (5)Transfer of liability for contributions or payments in lieu of contributions. The transferor and successor shall be jointly and severally liable for any of the transferor's liability for contributions or payments in lieu of contributions at the time of the transfer under s. 108.16 (8) (f), Stats. The liability of the successor shall be proportioned to the extent of the transferred business as determined by the transfer percentage.
DWD 115.10(6) (6)Transfer of benefit liability.
DWD 115.10(6)(a)(a) Total successorship. When a transfer of business results in a total successorship, all benefits paid after the transfer date shall be charged to the employer's account of the successor, even though based on prior services for the transferor in the transferred business under s. 108.16 (8) (i), Stats.
DWD 115.10(6)(b) (b) Partial successorship. When a transfer of business results in a partial successorship, any benefits charged to the transferor after the transfer date for employees of the transferred business shall be credited to the employer's account of the transferor and recharged to the employer's account of the successor.
DWD 115.10 History History: Cr. Register, January, 1992, No. 433, eff. 2-1-92.
DWD 115.11 DWD 115.11 Non-successor transferee.
DWD 115.11(1) (1) Standard. A transferee which is not a successor under ch. 108, Stats., and this chapter becomes an employer as of the date of transfer under s. 108.16 (8) (j), Stats., when the following conditions are met:
DWD 115.11(1)(a) (a) A transfer of business has occurred under s. DWD 115.01; and
DWD 115.11(1)(b) (b) The transferee is not currently an employer subject to ch. 108, Stats.
DWD 115.11(2) (2)Effects of a transfer without successorship.
DWD 115.11(2)(a)(a) The transferee becomes subject to ch. 108, Stats., on the date of transfer and is liable for contributions or payments in lieu of contributions, whichever is applicable, from that date.
DWD 115.11(2)(b) (b) The transferee shall be assigned an initial or new employer rate for the first 2 years under s. 108.18 (2), Stats.
DWD 115.11(2)(c) (c) The first contribution report shall be due from the transferee on the due date specified in s. DWD 110.06 (3), (4) and (5) for the quarter following the quarter in which the transfer occurred or January 31 for those becoming liable in the fourth quarter of the preceding year.
DWD 115.11 History History: Cr. Register, January, 1992, No. 433, eff. 2-1-92.
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.