OAR 471-031-0141
Partial Transfer of Experience


(1)

Under ORS 657.480 (Effect of transfer of trade or business)(1) A new or existing employing unit is a partial successor to the experience of an employing enterprise when an identifiable and segregable portion of the employing enterprise is transferred to or otherwise acquired by the employing unit, including the employees of that portion of the employing enterprise necessary to carry on day-to-day operations and essential business functions in the same manner and for the same purposes as carried on prior to the acquisition or transfer.

(2)

For the period beginning with the date of the transfer of the employment experience record through the end of the calendar year in which the transfer occurs, the contribution rate of the predecessor shall be the same as if there had been no transfer. Upon determination for partial transfer the Director shall:

(a)

Assign a contribution rate for a successor that is a new employing unit, to be effective from the date of the transfer through the end of the calendar year in which the transfer occurs; and

(b)

Notify the successor in writing of the tax rate assigned in subsection (2)(a) of this rule.

(3)

In a partial consolidation, when both employing units are existing employers, the tax rate experience shall be consolidated for the next year’s rate determination only if the date of the transfer is on or before August 31 of the current year.

(4)

The percentage of employment experience attributable to the transfer shall be calculated by dividing the number of employees hired by the successor that are attributable to the transfer by the total number of employees of the predecessor prior to the transfer. This percentage, rounded to the nearest percentage number, shall then be applied to the benefit charges and taxable payroll of the predecessor and the resulting amounts shall comprise the employment experience to be transferred to the successor’s account. The experience shall be added to the successor’s account in the same quarter it is removed from the predecessor’s account. The percent transferred plus the percent not transferred shall equal one hundred percent.

(5)

The Director may use other reasonable means of determining the percentage in section (4) that is attributable to the transfer.

(6)

Benefits charged to the predecessor in the quarter in which the transfer occurs and the next three quarters shall be split between the predecessor and successor in accordance with the percentage established in section (4) of this rule. For each quarter thereafter, none of the benefits charged to the predecessor shall be transferred to the successor.

(7)

For the limited purpose of calculating experience rates under this rule, if the transfer occurs after the fifteenth day of the middle month of a calendar quarter, wages paid by the predecessor during such quarter shall be split between the predecessor and successor in accordance with the percentage calculated in section (4) of this rule. If the transfer occurs on or before the fifteenth day of the middle month of a calendar quarter, none of the wages paid by the predecessor during such quarter shall be split.

(8)

For each calendar year commencing on or after the date of the transfer, the successor’s contribution rate shall be based on its experience with taxable payroll and benefit charges, including the experience of the acquired portion of business as determined in sections (2), (3), (4), (5), (6) and (7).

(9)

The successor, if not an employer at the time of the transfer, shall become an employer as of the date of the transfer.

(10)

In determining excess wages over the taxable wage amount, a successor may use the wages paid by the predecessor prior to the transfer.

(11)

When the Employment Department determines that a partial transfer has occurred, the Employment Department shall give the successor notice of the determination and its effects to the partial successor. The partial successor may request a hearing in accordance with the provisions of ORS 657.683 (Hearings on actions under ORS 657.480, 657.679, 657.681 and 657.682).

(12)

Notwithstanding sections (2), (3), (4), (5), (6) and (7), when an employing unit acquires a portion of the trade or business of an employer that has received the penalty tax rate under ORS 657.480 (Effect of transfer of trade or business)(3), a proportionate share of the penalty tax rate will transfer and be added to its calculated rate.

(13)

Any transfer or acquisition described in section (1) must be reported to the Employment Department Tax Section within 60 days of the date the transfer or acquisition becomes final.

Source: Rule 471-031-0141 — Partial Transfer of Experience, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=471-031-0141.

471‑031‑0005
Payroll Records
471‑031‑0010
Posting of Notices By Employers
471‑031‑0015
Corporate Officer and Shareholder Dividends as Wages
471‑031‑0017
Corporate Officer/Director Election
471‑031‑0020
Incidental Expense of Employees
471‑031‑0025
Pensions
471‑031‑0030
Jury Pay
471‑031‑0035
Bonuses, Fees, and Prizes
471‑031‑0040
Accident Compensation
471‑031‑0045
Dismissal and Separation Allowances, Vacation Pay, Holiday Pay, and Guaranteed Wage Payments
471‑031‑0050
Gifts
471‑031‑0055
Remuneration Other than Cash
471‑031‑0060
Payments by an Employer to Persons in the Military Service
471‑031‑0065
Employer Elections to Cover Multi-State Workers
471‑031‑0067
One Percent Penalty
471‑031‑0070
Taxes
471‑031‑0072
Application of Payments
471‑031‑0075
Appointment of an Agent to Act on Behalf of a Group of Employers
471‑031‑0076
Common Paymaster
471‑031‑0077
Coemployment/Payrolling
471‑031‑0080
Tax Compromise Policy
471‑031‑0085
Employer Wages and Hours of Work Report
471‑031‑0095
Approval of Work Experience Programs
471‑031‑0105
Student Employment
471‑031‑0110
Action at Law, Verification, Liens, Distraint Warrants
471‑031‑0120
Christmas Tree Farms
471‑031‑0125
In-Home Sales
471‑031‑0130
Domestic Service
471‑031‑0135
Participants of Federal Training Programs
471‑031‑0139
Employing Enterprise and Prohibited Activities
471‑031‑0140
Transfer of Experience Determination, Tax Rate, Consolidation
471‑031‑0141
Partial Transfer of Experience
471‑031‑0142
Acquiring an Employing Entity: Active or Inactive
471‑031‑0145
Continuous Jurisdiction
471‑031‑0151
Failure to File Reports or Pay Tax — Good Cause
471‑031‑0155
Investigatory Subpoenas
471‑031‑0160
Computation of Excess Wages
471‑031‑0175
Agricultural Employment
471‑031‑0181
Independent Contractor
471‑031‑0185
Indian Tribes
471‑031‑0190
Shopping News
471‑031‑0195
Horticultural Commodity
471‑031‑0205
Cafeteria Plans
471‑031‑0210
Bond or Deposit
471‑031‑0215
Registered Domestic Partnerships
471‑031‑0220
Franchisee
471‑031‑0235
Volunteer Consideration
471‑031‑0301
Election of coverage for services normally excluded from unemployment insurance
Last Updated

Jun. 8, 2021

Rule 471-031-0141’s source at or​.us