Transfer of experience
When a transfer of business occurs, the acquiring employer takes over the transferring employer’s experience rating account. If only a portion is transferred or sold, then only a portion of the account is transferred in proportion to the payroll or number of employees assigned to the transferred organization. The account taken over remains chargeable for benefits paid that are based on employment in the business prior to the transfer. Employers are notified of any resulting change in UI rates.
A transfer of business occurs when an employer transfers or sells all or part of an organization, trade, or business to another employer, and at least one of the following conditions exists:
The acquiring employer has assumed any of the transferring employer’s obligations.
The acquiring employer has acquired any of the transferring employer’s goodwill.
The acquiring employer has continued or resumed the business of the transferring employer either in the same establishment or elsewhere.
The acquiring employer has employed substantially the same employees as those the transferring employer had employed in connection with the organization, trade, business, or part thereof transferred.
A transfer of business also occurs when a business transfers some or all of its workforce, payroll, or both, to another employer, and (at the time of transfer) there is at least 10% common ownership, management, or control of the two employers. Penalties are assessed if an employer, its advisor, or both, knowingly engage in evasion, misrepresentation, or willful nondisclosure regarding the transfer with the UI Division.
In the event of any business transfer in whole or in part, employers must notify the UI Division. Notice of the transfer can be entered on Form NYS‑45, or sent directly to the Liability and Determination Section on Form IA 15 . Notice of the transfer must be given to the Division before the end of the year following the calendar year in which the transfer occurred if the transfer is to be recognized for experience rating purposes.