Termination of Coverage

To terminate coverage, even in case such coverage was by voluntary election, the employer must file an application for termination of coverage. Such application must be submitted before April 30 of the year following the calendar year in which the employer did not otherwise meet the statutory requirements of the Law with respect to liability.

An employer who has rendered no employment and paid no wages in the State for a continuous period of one calendar year may submit an application for termination of coverage upon the resumption of employment in the State.

When termination is granted, any reserve which the employer may have to his credit for experience rating purposes will be forfeited. Should the employer subsequently become a liable employer, the reserve could not be used in calculating an experience rate.

When an employer acquires substantially all of the business of a predecessor employer and the experience rating reserve of the predecessor is transferred to the successor, the liability of the predecessor may be terminated at the end of the calendar year during which said succession occurred provided there were no twenty different weeks in the calendar year after the succession during which the predecessor employed one or more individuals, and no calendar quarter within the calendar year during which the predecessor paid for service in employment wages of fifteen hundred dollars or more.