Effective January 1, 2006, if an individual or entity transfers all or a portion of its trade or business and there is any substantial common ownership, management or control of the transferor and transferee, the experience rating records of the transferor and transferee shall be combined for the purpose of determining their contribution rate. However, if the transferor or transferee had a contribution rate applicable to it for the calendar year in which the transfer occurred, it shall continue with that contribution rate for the remainder of the calendar year. If the transferee had no contribution rate applicable to it for the calendar year in which the transfer occurred, the contribution rate of the transferee shall be the same as the contribution rate of the transferor for the remainder of the calendar year.
Additionally, if an individual or entity that is not an employer under the Act acquires the trade or business of any employing unit, the experience rating record of the acquired business shall not be transferred to the individual or entity if the Director finds that the individual or entity acquired the business solely or primarily to obtain a lower contribution rate. An employer that knowingly pays or attempts to pay contributions at a rate that is inconsistent with the SUTA dumping law is subject to substantial civil penalties and criminal liability, as is an individual or entity that knowingly advises another to pay or attempt to pay contributions at a rate inconsistent with the SUTA dumping law.