8 CSR 10-4.190 - State Unemployment Tax Act Dumping

PURPOSE: This rule implements federally mandated legislation regarding State Unemployment Tax Act Dumping under the Missouri Employment Security Law, section 288.110.2, RSMo.

(1) When used in section 288.110.2, RSMo the following terms mean:

(A) "Substantially common ownership" exists if, on the date of an acquisition of the organization, trade or business of an employing unit, a shareholder, officer, or other owner of a legal or equitable interest in the predecessor employing unit, or the spouse, natural child, stepparent, stepsibling, or a person within the first or second degree of consanguinity or affinity or secondary affinity of the shareholder, officer, or other owner:

1. Is a shareholder, officer or other owner of a legal or equitable interest in the successor-employing unit; or

2. Holds an option to purchase a legal or equitable interest in the successor-employing unit.

(B) "Substantially common management or control" exists if, after the acquisition of the organization, trade or business of an employing unit, the predecessor-employing unit continues to:

1. Own or manage the entity that conducts the organization, trade or business;

2. Own or manage the assets necessary to conduct the organization, trade, or business;

3. Control through security or lease arrangements the assets necessary to conduct the organization, trade or business; or

4. Direct the internal affairs or conduct of the organization, trade or business.

Notes

8 CSR 10-4.190

AUTHORITY: section 288.220, RSMo 2000.* Emergency rule filed Nov. 22, 2005, effective Jan. 1, 2006, expired June 29, 2006. Original rule filed Nov. 22, 2005, effective May 30, 2006.

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