8 CSR 10-4.080 - Joint Accounts

PURPOSE: This rule prescribes how joint accounts will be established and the consequences of that action. This rule implements section 288.100, RSMo. This rule was previously known as regulation no. 17.

(1) Any employer may make application in writing to the division to participate in a joint account with one (1) or more other employers.

(2) The division shall approve those applications that meet the requirements of this rule.

(3) Any application to participate in a joint account must be filed by the first day of April of the calendar year in which the applicant-employer's membership in the joint account is to become effective. In addition, all contributions, interest and penalties due from the applicant-employer must be paid prior to the division approving the applicant-employer's membership in the joint account.

(4) All such applications shall be accepted only on the condition that the applicant waives all rights to its individual employer account under the law when the division approves the application and merges its individual account in a joint account for experience rating purposes.

(5) Each applicant-employer shall agree to assume joint and several liability for any contributions, interest and penalties accruing on the part of any one of the employers participating in the joint account during the duration of the account in consideration for the division granting the applicant-employer the right to participate in it.

(6) Each employer participating in a joint account agrees to maintain a sufficient record of its own employment in order that the employer can furnish the division with information necessary to enable the division to make proper certification to the Bureau of Internal Revenue of the United States Treasury under the Federal Unemployment Tax Act and to enable the division to determine any benefit charges against the separate account.

(7) No reduced rate of contributions shall be established for any joint account until each participating employer is individually eligible for the calculation of a contribution rate.

(8) All joint accounts will be maintained only on a calendar-year basis and those accounts must be maintained for a minimum period of two (2) calendar years unless terminated sooner by action of the division.

(9) All contribution credits for all employers in a joint account will be calculated together. All benefit payments chargeable against all employers in a joint account will be calculated together. The average annual payroll of the joint account will be the average of the annual payrolls of all employers participating in the account.

(10) If any individual, type of organization or employing unit succeeds to the business of an employer participating in a joint account under conditions which would require the transfer of any separate account of that employer to the successor, the successor shall be ipso facto a member of the joint account.

(11) Withdrawal from a joint account by any participating employer may be approved if the request for withdrawal is made in writing to the division on or before December 31 of the year prior to the year for which the withdrawal is to be effective. The withdrawing employer, as of the effective date of withdrawal, shall be treated in all respects as a newly liable employer, regardless of all prior contributions or benefit payment experience. The remaining employer or employers shall continue to constitute the joint account. The withdrawal or termination of all except one (1) member shall not dissolve the joint account, unless and until that last member shall withdraw or terminate.

(12) Participation in a joint account shall not affect the right of any employer to terminate its liability, but after termination, the employer, in all respects, shall be treated as a withdrawing employer under this rule.

Notes

8 CSR 10-4.080

AUTHORITY: section 288.220, RSMo 2000.* Original rule filed Sept. 30, 1946, effective Oct. 10, 1946. Amended: Filed June 20, 1951, effective July 1, 1951. Amended: Filed Nov. 21, 1975, effective Dec. 1, 1975. Amended: Filed July 10, 1998, effective Dec. 30, 1998. Amended: Filed Dec. 28, 2000, effective July 30, 2001.

*Original authority: 288.220, RSMo 1951, amended 1955, 1961, 1963, 1967, 1971, 1995.