§ 63.2. Part transfers of organization, trade or business.
(a) Applicability. This section applies to part transfers of an organization, trade or business that occurred before July 1, 2005.
(b) Wage ratios. When an application for part transfer of an employer’s experience record and reserve account balance has been approved, or where such a transfer has occurred as provided in section 301(d)(1)(B) of the law (43 P. S. § 781(d)(1)(B)), the Department will determine the ratio that the wages paid during the last 3 completed calendar years prior to the date of the transfer, in that part of the organization, bears to all wages paid by the predecessor in the corresponding period. If the part which is transferred has been in existence for a period of less than 3-calendar years, wages paid during that period shall be used to determine the ratio.
(c) Application of ratio. The wage ratio shall be used as the basis to reduce the reserve account of the predecessor and to establish the reserve account of the successor-in-interest, as follows:
(1) Apply the ratio to the reserve account of the predecessor beginning with the fiscal year in which wages were first paid in that part of the organization, trade or business for which records were transferred, and ending with the date on which the transfer occurred.
(2) Transfer the amounts determined pursuant to paragraph (1) from the experience record and reserve account balance of the predecessor to that of the successor-in-interest.
(d) Benefit paid subsequent to transfer. When an application for part transfer of the experience record and reserve account balance of an employer is filed and approved, benefits paid after the date of transfer based on wages paid before the date of transfer, in that part of the organization, trade or business transferred, shall be charged to the experience record and reserve account of the successor-in-interest.
Source The provisions of this § 63.2 has been superseded by the act of June 15, 2005 (P. L. 8, No. 5) with regard to transfers of organization, trade, business or workforce that occur on or after July 1, 2005, amended June 17, 2011, to restrict its applicability to transfers that occurred before July 1, 2005, effective July 18, 2011, 41 Pa.B. 3094. Immediately preceding text appears at serial page (318295).
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