How can an acquisition or merger affect my unemployment tax rate?
If a taxpaying employer acquires another business, the acquiring (and in some cases the acquired) employer may have a say (depending upon the state) as to whether a composite rate will be assigned. Employers should, therefore, review the tax-rate implications of combining the two companies’ unemployment tax histories. You should not just assume that combining the two accounts will be beneficial. Even if you only acquire a portion of a tax-paying entity, you may benefit by transferring a portion of the organization’s unemployment tax history. Most state unemployment agencies are willing to help you decide whether a transfer of experience is permitted, and some may even advise whether it would be beneficial.
