Ohio § 4141.24

§ 4141.24.

(A)(1) The director of job and family services shall maintain a separate account for each

employer and, except as otherwise provided in division (B) of section 4141.25 of the Revised Code respecting mutualized contributions, shall credit such employer's account with all

the contributions, or payments in lieu of contributions, which the employer has paid

on the employer's own behalf. (2) If, as of the computation date, a contributory employer's account shows a negative

balance computed as provided in division (A)(3) of section 4141.25 of the Revised Code , less any contributions due and unpaid on such date, which negative balance is in

excess of the limitations imposed by divisions (A)(2)(a), (b), and (c) of this section

and if the employer's account is otherwise eligible for the transfer, then before

the employer's contribution rate is computed for the next succeeding contribution

period, an amount equal to the amount of the excess eligible for transfer shall be

permanently transferred from the account of such employer and charged to the mutualized

account provided in division (B) of section 4141.25 of the Revised Code . (a) If as of any computation date, a contributory employer's account shows a negative

balance in excess of ten per cent of the employer's average annual payroll, then before

the employer's contribution rate is computed for the next succeeding contribution

period, an amount equal to the amount of the excess shall be transferred from the

account as provided in this division.  No contributory employer's account may have any excess transferred pursuant to division

(A)(2)(a) of this section, unless the employer's account has shown a positive balance

for at least two consecutive computation dates prior to the computation date with

respect to which the transfer is proposed.  Each time a transfer is made pursuant to division (A)(2)(a) of this section, the

employer's account is ineligible for any additional transfers under that division,

until the account shows a positive balance for at least two consecutive computation

dates subsequent to the computation date of which the most recent transfer occurs

pursuant to division (A)(2)(a), (b), or (c) of this section. (b) If at the next computation date after the computation date at which a transfer from

the account occurs pursuant to division (A)(2)(a) of this section, a contributory

employer's account shows a negative balance in excess of fifteen per cent of the employer's

average annual payroll, then before the employer's contribution rate is computed for

the next succeeding contribution period an amount equal to the amount of the excess

shall be permanently transferred from the account as provided in this division. (c) If at the next computation date subsequent to the computation date at which a transfer

from a contributory employer's account occurs pursuant to division (A)(2)(b) of this

section, the employer's account shows a negative balance in excess of twenty per cent

of the employer's average annual payroll, then before the employer's contribution

rate is computed for the next succeeding contribution period, an amount equal to the

amount of the excess shall be permanently transferred from the account as provided

in this division. (d) If no transfer occurs pursuant to division (A)(2)(b) or (c) of this section, the

employer's account is ineligible for any additional transfers under division (A)(2)

of this section until the account requalifies for a transfer pursuant to division

(A)(2)(a) of this section. (B) Any employer may make voluntary payments in addition to the contributions required

under this chapter, in accordance with rules established by the director.  Such payments shall be included in the employer's account as of the computation

date, provided they are received by the director by the thirty-first day of December

following such computation date.  Such voluntary payment, when accepted from an employer, will not be refunded in

whole or in part.  In determining whether an employer's account has a positive balance on two consecutive

computation dates and is eligible for transfers under division (A)(2) of this section,

the director shall exclude any voluntary payments made subsequent to the last transfer

made under division (A)(2) of this section. (C) All contributions to the fund shall be pooled and available to pay benefits to any

individual entitled to benefits irrespective of the source of such contributions. (D)(1) For the purposes of this section and sections 4141.241 and 4141.242 of the Revised Code , an employer's account shall be charged only for benefits based on remuneration paid

by such employer.  Benefits paid to an eligible individual shall be charged against the account of

each employer within the claimant's base period in the proportion to which wages attributable

to each employer of the claimant bears to the claimant's total base period wages.  Charges to the account of a base period employer with whom the claimant is employed

part-time at the time the claimant's application for a determination of benefits rights

is filed shall be charged to the mutualized account when all of the following conditions

are met: (a) The claimant also worked part-time for the employer during the base period of the

claim. (b) The claimant is unemployed due to loss of other employment. (c) The employer is not a reimbursing employer under section 4141.241 or 4141.242 of the Revised Code . (2) Notwithstanding division (D)(1) of this section, charges to the account of any employer,

including any reimbursing employer, shall be charged to the mutualized account if

it finally is determined by a court on appeal that the employer's account is not chargeable

for the benefits. (3)(a) Any benefits paid to a claimant under section 4141.28 of the Revised Code prior to a final determination of the claimant's right to the benefits shall be charged

to the employer's account as provided in division (D)(1) of this section, provided

that if there is no final determination of the claim by the subsequent thirtieth day

of June, the employer's account shall be credited with the total amount of benefits

that has been paid prior to that date, based on the determination that has not become

final.  The total amount credited to the employer's account shall be charged to a suspense

account, which shall be maintained as a separate bookkeeping account and administered

as a part of this section, and shall not be used in determining the account balance

of the employer for the purpose of computing the employer's contribution rate under section 4141.25 of the Revised Code . (b) If it is finally determined that the claimant is entitled to all or a part of the

benefits in dispute, the suspense account shall be credited and the appropriate employer's

account charged with the benefits.  If it is finally determined that the claimant is not entitled to all or any portion

of the benefits in dispute, the benefits shall be credited to the suspense account

and, except as provided in division (D)(3)(d) of this section, a corresponding charge

made to the mutualized account established in division (B) of section 4141.25 of the Revised Code , provided that, except as otherwise provided in this section, if benefits are chargeable

to an employer or group of employers who is required or elects to make payments to

the fund in lieu of contributions under section 4141.241 of the Revised Code , the benefits shall be charged to the employer's account in the manner provided in

division (D)(1) of this section and division (B) of section 4141.241 of the Revised Code , and no part of the benefits may be charged to the suspense account provided in this

division. (c) Except as provided in division (D)(3)(d) of this section, to the extent that benefits

that have been paid to a claimant and charged to the employer's account are found

not to be due the claimant and are recovered by the director as provided in section 4141.35 of the Revised Code , they shall be credited to the employer's account. (d)(i) An employer's account shall not be credited for amounts recovered by the director

pursuant to division (D)(3)(c) of this section, and the mutualized account established

in division (B) of section 4141.25 of the Revised Code shall not be charged pursuant to division (D)(3)(b) of this section, for benefits

that have been paid to a claimant and are subsequently found not to be due to the

claimant, if it is determined by the director, on or after October 21, 2013, that

both of the following have occurred: (I) The benefits were paid because the claimant's employer, or any employee, officer,

or agent of that employer, failed to respond timely or adequately to a request for

information regarding a determination of benefit rights or claims for benefits under section 4141.28 of the Revised Code . (II) The claimant's employer, or any employee, officer, or agent of that employer, on

behalf of the employer, previously established a pattern of failing to respond timely

or adequately within the same calendar year period pursuant to division (D)(3)(d)(ii)(III)

of this section. (ii) For purposes of division (D)(3)(d) of this section: (I) A response is considered “timely” if the response is received by the director within

the time provided under section 4141.28 of the Revised Code . (II) A response is considered “adequate” if the employer or employee, officer, or agent

of that employer provided answers to all questions raised by the director pursuant

to section 4141.28 of the Revised Code or participated in a fact-finding interview if requested by the director. (III) A “ pattern of failing ” is established after the third instance of benefits being paid because the claimant's

employer, or any employee, officer, or agent of that employer, on behalf of the employer,

failed to respond timely or adequately to a request for information regarding a determination

of benefit rights or claims for benefits under section 4141.28 of the Revised Code within a calendar year period. (e) If the mutualized account established in division (B) of section 4141.25 of the Revised Code is not charged for benefits credited to a suspense account pursuant to division (D)(3)(d)

of this section, a corresponding charge shall be made to the account of the employer

whose failure to timely or adequately respond to a request for information caused

the erroneous payment. (f) The appeal provisions of sections 4141.281 and 4141.282 of the Revised Code shall apply to all determinations issued under division (D)(3)(d) of this section. (4) The director shall notify each employer at least once each month of the benefits

charged to the employer's account since the last preceding notice;  except that for

the purposes of sections 4141.241 and 4141.242 of the Revised Code which provides the billing of employers on a payment in lieu of a contribution basis,

the director may prescribe a quarterly or less frequent notice of benefits charged

to the employer's account.  Such notice will show a summary of the amount of benefits paid which were charged

to the employer's account.  This notice shall not be deemed a determination of the claimant's eligibility for

benefits.  Any employer so notified, however, may file within fifteen days after the mailing

date of the notice, an exception to charges appearing on the notice on the grounds

that such charges are not in accordance with this section.  The director shall promptly examine the exception to such charges and shall notify

the employer of the director's decision thereon, which decision shall become final

unless appealed to the unemployment compensation review commission in the manner provided

in section 4141.26 of the Revised Code .  For the purposes of this division, an exception is considered timely filed when

it has been received as provided in division (D)(1) of section 4141.281 of the Revised Code . (E) The director shall terminate and close the account of any contributory employer who

has been subject to this chapter if the enterprise for which the account was established

is no longer in operation and it has had no payroll and its account has not been chargeable

with benefits for a period of five consecutive years.  The amount of any positive balance, computed as provided in division (A)(3) of section 4141.25 of the Revised Code , in an account closed and terminated as provided in this section shall be credited

to the mutualized account as provided in division (B)(2)(b) of section 4141.25 of the Revised Code .  The amount of any negative balance, computed as provided in division (A)(3) of section 4141.25 of the Revised Code , in an account closed and terminated as provided in this section shall be charged

to the mutualized account as provided in division (B)(1)(b) of section 4141.25 of the Revised Code .  The amount of any positive balance or negative balance, credited or charged to the

mutualized account after the termination and closing of an employer's account, shall

not thereafter be considered in determining the contribution rate of such employer.  The closing of an employer's account as provided in this division shall not relieve

such employer from liability for any unpaid contributions or payment in lieu of contributions

which are due for periods prior to such closing. If the director finds that a contributory employer's business is closed solely because

of the entrance of one or more of the owners, officers, or partners, or the majority

stockholder, into the armed forces of the United States, or any of its allies, or

of the United Nations after July 1, 1950, such employer's account shall not be terminated

and if the business is resumed within two years after the discharge or release of

such persons from active duty in the armed forces, the employer's experience shall

be deemed to have been continuous throughout such period.  The reserve ratio of any such employer shall be the total contributions paid by

such employer minus all benefits, including benefits paid to any individual during

the period such employer was in the armed forces, based upon wages paid by the employer

prior to the employer's entrance into the armed forces divided by the average of the

employer's annual payrolls for the three most recent years during the whole of which

the employer has been in business. (F) If an employer transfers all of its trade or business to another employer or person,

the acquiring employer or person shall be the successor in interest to the transferring

employer and shall assume the resources and liabilities of such transferring employer's

account, and continue the payment of all contributions, or payments in lieu of contributions,

due under this chapter. If an employer or person acquires substantially all, or a clearly segregable and identifiable

portion of an employer's trade or business, then upon the director's approval of a

properly completed application for successorship, the employer or person acquiring

the trade or business, or portion thereof, shall be the successor in interest.  The director by rule may prescribe procedures for effecting transfers of experience

as provided for in this section. (G) Notwithstanding sections 4141.09 , 4141.23 , 4141.24 , 4141.241 , 4141.242 , 4141.25 , 4141.26 , and 4141.27 of the Revised Code , both of the following 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, both employers are under substantially

common ownership, management, or control, then the unemployment experience attributable

to the transferred trade or business, or portion thereof, shall be transferred to

the employer to whom the business is so transferred.  The director shall recalculate the rates of both employers and those rates shall

be effective immediately upon the date of the transfer of the trade or business. (2) Whenever a person is not an employer under this chapter at the time the person acquires

the trade or business of an employer, the unemployment experience of the acquired

trade or business shall not be transferred to the person if the director finds that

the person acquired the trade or business solely or primarily for the purpose of obtaining

a lower rate of contributions.  Instead, that person shall be assigned the applicable new employer rate under division (A)(1) of section 4141.25 of the Revised Code . (H) The director shall establish procedures to identify the transfer or acquisition of

a trade or business for purposes of this section and shall adopt rules prescribing

procedures for effecting transfers of experience as described in this section. (I) No rate of contribution less than two and seven-tenths per cent shall be permitted

a contributory employer succeeding to the experience of another contributory employer

pursuant to this section for any period subsequent to such succession, except in accordance

with rules prescribed by the director, which rules shall be consistent with federal

requirements for additional credit allowance in section 3303 of the “Internal Revenue

Code of 1954” and consistent with this chapter, except that such rules may establish

a computation date for any such period different from the computation date generally

prescribed by this chapter, and may define “calendar year” as meaning a twelve-consecutive-month

period ending on the same day of the year as that on which such computation date occurs. (J) The director may prescribe rules for the establishment, maintenance, and dissolution

of common contribution rates for two or more contributory employers, and in accordance

with such rules and upon application by two or more employers shall establish such

common rate to be computed by merging the several contribution rate factors of such

employers for the purpose of establishing a common contribution rate applicable to

all such employers. (K) The director shall adopt rules applicable to professional employer organizations

and professional employer organization reporting entities to address the method in

which a professional employer organization or professional employer organization reporting

entity reports quarterly wages and contributions to the director for shared employees. (1) The rules shall recognize a professional employer organization or professional employer

organization reporting entity as the employer of record of the shared employees of

the professional employer organization or professional employer organization reporting

entity for reporting purposes;  however, the rules shall require that each shared

employee of a single client employer be reported under a separate and unique subaccount

of the professional employer organization or professional employer organization reporting

entity to reflect the experience of the shared employees of that client employer. (2) The director shall use a subaccount solely to determine experience rates for that

individual subaccount on an annual basis and shall recognize a professional employer

organization or professional employer organization reporting entity as the employer

of record associated with each subaccount.  The director shall combine the rate experience that existed on a client employer's

account prior to entering into a professional employer organization agreement with

the experience accumulated as a subaccount of the professional employer organization

or professional employer organization reporting entity.  The combined experience shall remain with the client account upon termination of

the professional employer organization agreement. (3) A professional employer organization or professional employer organization reporting

entity shall provide a power of attorney or other evidence, which evidence may be

included as part of a professional employer organization agreement, completed by each

client employer of the professional employer organization or professional employer

organization reporting entity, authorizing the professional employer organization

or professional employer organization reporting entity to act on behalf of the client

employer in accordance with the requirements of this chapter. (4) Any rule adopted pursuant to division (K) of this section also shall include administrative

requirements that permit a professional employer organization or a professional employer

organization reporting entity to transmit any reporting and payment data required

under division (K)(1) of this section collectively as a single filing with the director. (5) As used in division (K) of this section, “client employer,” “professional employer

organization,” “professional employer organization agreement,” “professional employer

organization reporting entity,” and “shared employee” have the same meanings as in section 4125.01 of the Revised Code . (L) The director shall adopt rules applicable to alternate employer organizations as

defined in section 4133.01 of the Revised Code that are consistent with the requirements of and rules adopted under division (K)

of this section.