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Joint Employer Experience Rating Accounts
Regulation XXX of the Commission’s Rules and Regulations provides:
Two or more "employers" as defined in Section 41-27-210, South Carolina Code
of Laws, 1976, as amended, in the same or a related trade, occupation, profession, or
enterprise, or having a common financial interest, hereinafter referred to as an
"Employer Group," may enter into an agreement with the South Carolina Employment
Security Commission to establish a joint experience rating account as provided in Section
41-31-20, subject to the provisions of Title 68, Chapter 4, Article 2 – Rates of
Contributions; shall be treated as a separate employer account and subject to the
following provisions:
- A joint account may not be established for a period of less than five (5) years.
- The contribution rate for an "employer group" shall be computed by combining
the reserve balances and the computation of a combined experience rate of the first day of
the first month following the quarter in which the agreement is executed between the
"employer group" and the Commission.
- No "employer" may become a member of an "employer group" until such
employer has satisfied the provision of Section 41-31-40 (24 months of coverage).
- Separate accounts shall be maintained for each employer in an "employer group"
for identification with such separate accounts being combined only for the purpose of
establishing a joint experience rate.
- No "employer group" shall have a reduced contribution rate when an execution
for unpaid contributions is outstanding against one or more members of the "employer
group."
- If a member of an "employer group" acquires the business of an employer, the
provision of Section 41-31-100 or Section 41-31-110 as applicable, shall apply to the
"employer group" (Successor).
- The successor who acquires the business of a member of an "employer group"
shall continue to be a member of such group until the "employer group" is
dissolved.
- An "employer group" may be dissolved and the joint account distributed in
accord with Section 41-31-120 on the next regular computation date:
- by the parent employer, if each member of the "employer group" is
owned or controlled by such parent employer;
- by 50 percent or more of the employers in the "employer group" each of which
has at least a 5 percent reserve on the date of dissolution.
- Each member of an "employer group" shall be liable individually or
collectively for past dues contributions of any member and shall be subject to the
provision of Title 41, Chapter 31, Article 3.
- Benefits paid and chargeable to a member of an "employer group" shall be used
in computing the experience rate of the "employer group", however, only the
employer to whom benefits are chargeable shall have the right of appeal in accord with the
appeals provisions in Title 41, Chapter 35, Article 5.
- If for any reason the business of a member of an "employer group" is
discontinued or terminated in accord with Title 41, Chapter 37, the balance in the reserve
account of the discontinued business shall remain a part of the reserve balance of the
"employer group" until the dissolution of such "employer group."
- No provision in Section 41-31-20 or in this regulation issued pursuant thereto shall be
construed as giving any member of an "employer group" any authority over the
operation of another member with respect to the administration of the joint "employer
group" account.
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