![]() All taxed government employers have the same rate in a given year. Unemployment Insurance tax rates are computed for taxed government employers as a group. For more information, see State Unemployment Tax Act ( SUTA) Dumping.Ī governmental employer's annual contribution rate is computed in accordance with Chapter 204, Subchapter F of the Texas Unemployment Compensation Act. ![]() This practice, known as State Unemployment Tax Act ( SUTA) dumping, is a common scheme in which a business with a higher unemployment tax rate shuffles employees to another business in order to pay a lower rate. It is unlawful for employers to avoid a higher unemployment tax rate by altering their experience rating through transferring business operations to a successor. In order to make a partial transfer of compensation experience, complete and submit the Joint Application for Partial Transfer of Compensation Experience Forms. The wages attributable to the acquired part of the organization, trade or business must be separate and distinct from other wages of the predecessor employer and must be solely attributable to services provided on behalf of the acquired part of the organization, trade, or business. The successor employer must acquire a distinct and separate part of the organization, trade, or business that is capable of operating independently and separately from the predecessor employer.
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