Tex.
Labor Code Section 204.0861
Surplus Credit for Successor Employing Units
(a)
In this section, “surplus credit” means a credit described by Section 204.0651 (Surplus Credit).(b)
A successor employing unit to which compensation experience is transferred under Section 204.083 (Acquisition of All or Part of Experience-rated Organization, Trade, or Business; Transfer of Compensation Experience) is entitled to a surplus credit attributable to, but not applied or received by, the predecessor employing unit.(c)
A successor employing unit to which compensation experience is transferred under Section 204.084 (Acquisition of Part of Experience-rated Organization, Trade, or Business: Approval of Transfer of Compensation Experience Without Substantially Common Management or Control or Substantially Common Ownership; Contribution Rate) is entitled to a surplus credit attributable to, but not applied or received by, the predecessor employing unit if the commission determines that the requirement described by Section 204.084 (Acquisition of Part of Experience-rated Organization, Trade, or Business: Approval of Transfer of Compensation Experience Without Substantially Common Management or Control or Substantially Common Ownership; Contribution Rate)(c)(3) is satisfied.(d)
If the commission determines that a transfer of compensation experience was accomplished solely or primarily for the purpose of obtaining a lower contribution rate, a successor employing unit is not entitled to, and may not apply or receive, a surplus credit under Subsection (b) or (c).(e)
A predecessor employing unit is not entitled to, and may not apply or receive, all or any portion of a surplus credit that is based on compensation experience that is transferred to a successor employing unit under this subchapter.(f)
The commission shall adopt rules necessary to implement and enforce this section, including rules that ensure that only a successor employing unit applies or receives all or part of a surplus credit previously attributable to a predecessor employing unit.
Source:
Section 204.0861 — Surplus Credit for Successor Employing Units, https://statutes.capitol.texas.gov/Docs/LA/htm/LA.204.htm#204.0861 (accessed Jun. 5, 2024).
