Introduced
by
To establish that if a company acquires 10 percent or more of the employees, payroll, trade, inventory, services, or other assets or another firm, then the unemployment tax rate of the other firm also applies to the receiving company. Taxes levied under the State Unemployment Tax Act (SUTA) are based on a firm’s layoff history, and there is concern that some companies are “SUTA dumping” by transferring employees to newly created or acquired companies with lower unemployment tax rates.
Referred to the Committee on Commerce and Labor
