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Wage Base Continuation: Restructures
During a mid-year restructure, in most cases, the predecessor company has already met certain (if not all) unemployment taxable wage base and tax
payment premiums. The successor company is entitled to transfer the wage bases and taxes paid of the predecessor, and not forced to start over or
duplicate amounts per employee when reporting for the remainder of the year. This is true for both SUTA & FUTA. However, in some cases, it may not
be beneficial to transfer the wage base and payments made if the actual tax rate transfer is not desired.
Barnett analyzes the effect of all potential wages base transfers, and the compound effect of securing or denying the experience tax rate itself.
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