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11-10-723. Special rules regarding transfers of experience and assignment of rates — Definitions.
Arkansas Code — all titles (historical 2020) · legal_authorities
11-10-723. Special rules regarding transfers of experience and assignment of rates — Definitions.
(a) Notwithstanding any other provision of law, the following shall apply regarding assignment of rates and transfers of experience:
(1) If an employer transfers its trade or business, or a portion thereof, to another employer and, at the time of the transfer, there is any common ownership, management, or control of the two (2) employers, then the unemployment experience attributable to the transferred trade or business, or portion thereof, shall be combined with the employer to whom the business is transferred. The combining of experience and recalculation of applicable employer tax rates shall be made effective the first day of the calendar quarter following the date of transfer of the trade or business, or portion thereof. The transfer of some or all of an employer's workforce to another employer shall be considered a transfer of trade or business, or portion thereof; and
(2) If following a transfer of experience under subdivision (a)(1) of this section or transfer of experience as otherwise provided in this chapter involving only a portion of a trade or business, the Director of the Division of Workforce Services determines that a substantial purpose of the transfer was to obtain a reduced liability for contributions, then the experience rating accounts of the employers involved shall be combined into a single account and a single rate assigned to such an account effective the first day of the calendar quarter following the date of transfer.
(b) Whenever a person is not an employer under this chapter at the time it acquires the trade or business of an employer, the unemployment experience of the acquired business shall not be transferred to that person if the di
Source: Arkansas Code — historical release 78 (November 6, 2020) · 11-10-723
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:11-10-723
Source file: gov.ar.code.title.11.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 6f8ae5b2743e2d0a0afee04826b64ab953e17968961162d33736b3e4ade8090f
Source location: content.xml paragraph 13843
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11-10-723. Special rules regarding transfers of experience and assignment of rates — Definitions.
(a) Notwithstanding any other provision of law, the following shall apply regarding assignment of rates and transfers of experience:
(1) If an employer transfers its trade or business, or a portion thereof, to another employer and, at the time of the transfer, there is any common ownership, management, or control of the two (2) employers, then the unemployment experience attributable to the transferred trade or business, or portion thereof, shall be combined with the employer to whom the business is transferred. The combining of experience and recalculation of applicable employer tax rates shall be made effective the first day of the calendar quarter following the date of transfer of the trade or business, or portion thereof. The transfer of some or all of an employer's workforce to another employer shall be considered a transfer of trade or business, or portion thereof; and
(2) If following a transfer of experience under subdivision (a)(1) of this section or transfer of experience as otherwise provided in this chapter involving only a portion of a trade or business, the Director of the Division of Workforce Services determines that a substantial purpose of the transfer was to obtain a reduced liability for contributions, then the experience rating accounts of the employers involved shall be combined into a single account and a single rate assigned to such an account effective the first day of the calendar quarter following the date of transfer.
(b) Whenever a person is not an employer under this chapter at the time it acquires the trade or business of an employer, the unemployment experience of the acquired business shall not be transferred to that person if the director finds that that person acquired the business solely or primarily for the purpose of obtaining a lower rate of contributions. Instead, that person shall be assigned the new employer rate under this chapter. In determining whether the business was acquired solely or primarily for the purpose of obtaining a lower rate of contributions, the director shall use objective factors that may include the cost of acquiring the business, whether the person continued the business enterprise of the acquired business, how long that business enterprise was continued, or whether substantial numbers of new employees were hired for performance of duties unrelated to the business activity conducted prior to acquisition.
(c)(1) Knowing violations or attempted violations of subsection (a) or subsection (b) of this section or any other provision of this subchapter related to determining the assignment of a contribution rate shall result in an additional two-percent rate increase for the rate year during which the violation or attempted violation occurred and a two-percent additional rate increase in each of the following three (3) rate years. In addition to the rate increases, a penalty of ten percent (10%) of total taxes due shall also be assessed in each of these rate years. All penalty amounts shall be deposited and credited to the Division of Workforce Services Special Fund as set out in § 11-10-716. The additional tax and penalty required by this subsection shall not be credited to the separate account of any employer, nor shall any employer whose contribution rate has been affected by this subsection be eligible to make a voluntary payment pursuant to § 11-10-705(c).
(2) If a person knowingly advises another person in a way that results in a violation of subsection (a) or subsection (b) of this section, the person shall be subject to a penalty of five thousand dollars ($5,000) plus ten percent (10%) of the total taxes due from the person violating subsection (a) or subsection (b) of this section for any rate year in which a violation occurred. All penalty amounts shall be deposited and credited to the fund as set out in § 11-10-716.
(3) The rate increases and penalties set forth in this subchapter along with any interest that may accrue as a result of these rate increases and penalties shall be in addition to any other rate increases, penalties, and interest provided in this chapter and shall be subject to collection as provided for in §§ 11-10-716 — 11-10-722.
(4) As used in this section, “knowing” and “knowingly” mean having actual knowledge of or acting with deliberate ignorance or reckless disregard for the prohibition involved.
(5) As used in this section, “violations or attempted violations” and “violates or attempts to violate” include, but are not limited to, intent to evade, misrepresentation, or willful nondisclosure.
(6)(A) In addition to the rate increases and penalties imposed by subdivision (c)(1) of this section, any person in violation of this section who knowingly evades or defeats or attempts to evade or defeat the payment of any unemployment insurance tax, penalty, or interest due under this subchapter shall be guilty of a Class C felony.
(B) In addition to the penalties imposed by subdivision (c)(2) of this section, any person who knowingly assists a person in evading or defeating or attempting to evade or defeat the payment of any unemployment insurance tax, penalty, or interest due under this subchapter shall be guilty of a Class C felony.
(d) The director shall establish procedures to identify the transfer or acquisition of a business for purposes of this section.
(e) As used in this section:
(1) “Person” has the meaning given that term by section 7701(a)(1) of the Internal Revenue Code of 1986; and
(2) “Trade or business” shall include the employer's workforce.
(f) This section shall be interpreted and applied in such a manner as to meet the minimum requirements contained in any guidance or regulations issued by the United States Department of Labor.
(g) If this section and § 11-10-710 could both be applied to a transfer or attempted transfer of experience, this section shall take precedence and be applied to the transfer or attempted transfer.
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Arkansas Code — all titles (historical 2020) · legal_authorities
11-10-705. Future rates — Computation of contribution rates.
(a)(1) Each employer's contribution rate beginning January 1 for each twelve-month period shall be determined on the basis of the employer's record through June 30 of the previous calendar year.
(2) The record of an employer shall include, for the purpose of computing an employer's contribution rate, any payment, except a payment that represents a stabilization tax payment or a payment that represents an extended benefit tax payment, made by the employer on or before July 31 on wages paid by the employer on or before June 30 of the calendar year.
(b)(1)(A) The contribution rate of an employer who has had three (3) or more years of benefit risk as defined at § 11-10-707 shall be that shown on the corresponding line that reflects the employer's reserve ratio in the contribution rate schedule which follows.
(B) The reserve ratio in the following schedule is determined by dividing the difference in contributions paid and regular benefits charged by the annual taxable payroll:
CONTRIBUTION RESERVE RATIO RATE 0.1% 9.95% or more 0.3% 9.35% but less than 9.95% 0.5% 8.85% but less than 9.35% 0.8% 8.65% but less than 8.85% 1.2% 8.35% but less than 8.65% 1.6% 7.95% but less than 8.35% 2.0% 7.35% but less than 7.95% 2.4% 6.75% but less than 7.35% 2.8% 5.45% but less than 6.75% 3.2% 2.45% but less than 5.45% 4.0% 1.35% but less than 2.45% 5.0% Less than 1.35% with a positive reserve balance 6.0% Less than 0.00%
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(2)(A) Notwithstanding any other provision of this chapter, for any calendar year beginning on and after January 1, 2008, an employer that has been assigned a contribution rate of six percent (6%) under this chapter and that has had such a r
Source: Arkansas Code — historical release 78 (November 6, 2020) · 11-10-705
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 11-10-705. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
11-10-710. Transfer of experience.
(a)(1) Unless otherwise provided in § 11-10-723, any employing unit that acquires the organization, trade, and all of the places of business and substantially all of the assets of any employer, excepting, in any such case, any assets retained by the employer incident to the liquidation of the employer's obligations, whether or not the acquiring employing unit was an employing unit within the meaning of § 11-10-208 prior to the acquisition, and that continues the organization, trade, or business as indicated by retaining the predecessor employer's three-digit North American Industry Classification System code shall assume the predecessor employer's actual contributions, regular benefit experience, annual payrolls, liability for current or delinquent contributions, interest, penalty, and otherwise as if no change with respect to the separate account, actual experience, and payrolls or the position of the predecessor employer otherwise had occurred and as if the operations of the predecessor employer had at all times been carried on by the successor employing unit.
(2) The separate account of the predecessor employer shall be transferred by the Director of the Division of Workforce Services to the successor employing unit and, as of the date of the acquisition, shall become the separate account or part of the separate account, as the case may be, of the successor employing unit, and the regular benefits thereafter chargeable to the predecessor employer on account of employment prior to the date of the acquisition shall be charged to the separate account of the successor employing unit.
(b)(1) However, unless otherwise provided in § 11-10-723, if any employing unit acquires a segregable and identifiable portion of the business of any
Source: Arkansas Code — historical release 78 (November 6, 2020) · 11-10-710
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 11-10-710. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
11-10-716. Collection — Interest on past due contributions.
(a)(1) If contributions are not paid on the date on which they are due and payable as prescribed by the Director of the Division of Workforce Services, the whole or part thereafter remaining unpaid shall bear interest at the rate of one and one-half percent (1.5%) per month from and after the due date until payment is received by the director.
(2) In computing interest for any period less than a full month, the rate shall be five-hundredths of a percent (0.05%) for each day or fraction thereof.
(3) The date as of which payment of contributions, if mailed, is deemed to have been received may be determined by such rules as the director may prescribe.
(b)(1)(A) At the end of each month, deposits in the Unemployment Compensation Fund Clearing Account which have been established as interest and penalty payments collected pursuant to §§ 11-10-716 — 11-10-723 shall be paid over to the Treasurer of State and credited by him or her to the Division of Workforce Services Special Fund, § 19-5-984, created and established in the State Treasury.
(B) All withdrawals shall be upon voucher warrants issued, or caused to be issued, by the director for any one (1) or more of the following purposes as authorized by legislative appropriation:
(i) Refunds of the interest and penalties erroneously paid;
(ii) Replacements of money lost or erroneously expended, as provided by § 11-10-322; and
(iii) Such other and additional purposes necessary to the proper administration of this chapter as specifically provided in the appropriation for the Division of Workforce Services.
(2) Funds received as a result of the application of funds withdrawn from the fund pursuant to and in accordance with the withdrawal purposes and prov
Source: Arkansas Code — historical release 78 (November 6, 2020) · 11-10-716
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 11-10-716. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
11-10-722. Collection — Impoundment.
(a) The Director of the Division of Workforce Services or his or her designated representative may give notice of impoundment of any deposits in any bank or savings and loan institution payable to the order of any employer owing any delinquent contributions, interest, and penalties to which a lien has attached under this chapter. Notice of impoundment shall be served by the director or his or her designated representative by certified mail to the bank or savings and loan institution or by written notice served personally upon its president, vice president, cashier, or assistant cashier.
(b) Any bank or savings and loan institution served with notice of impoundment shall be required to recognize the Division of Workforce Services' lien on any deposit subject thereto by withholding payment of any deposit in an amount not to exceed the amount of the delinquent contributions, interest, and penalty to the depositor or to his or her order for a period not to exceed sixty (60) days.
(c) Any bank or savings and loan institution failing to comply shall be held liable for the amount covered by the notice of impoundment up to the amount on deposit to the employer's credit with the bank or savings and loan institution.
(d)(1) Impoundment of the funds shall be revoked when the lien or judgment has been satisfied and may be revoked at any time at the discretion of the director or his or her designated representative.
(2) Revocation of impoundment shall be served in the same manner as the notice of impoundment.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 11-10-722
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 11-10-722. This identifies an authority to review, not proof of applicability.