What is the tax rate when a new owner acquires an existing business, or businesses merge?
If a new owner acquires the organization, trade, or business, or 75% or more of the assets, of an existing business, and the existing business was an employer liable for the payment of Michigan unemployment taxes, then the new business becomes a liable employer. A business can acquire another business by a sale, or through foreclosure, lease, bankruptcy, or merger. The new owner is known as the successor, and this process of acquiring an existing business is called successorship. The new or existing business also becomes responsible for the payment to the UIA of any unpaid unemployment taxes and interest owed by the old business, up to the reasonable value of the assets acquired. Either the purchaser or seller may request from the UIA, in writing, not less than 10 days before the transfer of business, a Clearance of Account as to any amounts owing to UIA. Once UIA gives this Clearance of Account to a person, it will stand behind the accuracy of such clearance. By law, the seller must p
