Section
205.021(a) of the Act allows two or more
reimbursing employers to form a "Group Account".
The members of the Group Account share the cost
of reimbursing the Commission for unemployment
benefits paid to former employees. Unemployment
costs are borne by the entire group rather than
an individual employer. Taxed employers are not
eligible to form a Group Account.
The formation of a Group Account is treated as
an acquisition. The transaction is recorded on
Commission records as a total acquisition from
the predecessors (Individual Member Accounts) to
the successor (Group Account). Because all entities
comprising a Group Account are reimbursing employers,
there is no transfer of experience.
The effective date of a Group Account is the beginning
of the calendar quarter in which the application,
Form C-6C, Joint Application for Establishment
of a Group Account, is received. Once established,
a Group Account must remain in effect at least
two years.
To establish a Group Account:
- Provide Form C-6C to the Group Account's agent.
A Group Account cannot be established without
a properly completed Form C-6C.
- Review the completed Form C-6C. Return improperly
completed forms to the group's agent with a drafted
letter explaining the problem. The letter must be approved by your Supervisor.
- If Form C-6C is properly completed, date & sign
it on the Tax Director's behalf. Write “for” next to Director Tax Department.
- Prepare Forms C-10 to inactivate each individual
reimbursing account becoming part of the Group
Account.
Write Account Number
AE
Number
Init (Initials)
Date
Authority
Brief Name (above items 1 - 6)
Write Inactive On (Effective Date of Group
Account)
Final
Wages Date
Reason
Code => 4
Successor Account Number leave blank. Group Account Number to be completed by Status Operations Unit (SOU).
Write Brief
Name
Effective
Date
Joint
Application => 1 (Total)
=> 0
(Not Filed))
- Prepare Form C-10 to establish the Group Account.
Account Number leave blank. Group Account number to be completed by SOU.
Write AE
Number
Init (Initials)
Date
Authority
Brief Name (above items 1-6)
Write FEID
Type
Business => 23 (Political Subdivision Group
Account)
=>
24 (501(c)(3) Non-Profit Group Account)
Area
Code
Phone Number
Write the Employer's name and address on lines 1 through 6.
Line 1
Line 2 (must read - Group Account-)
Line 3
Line 4
Line 5
Line 6
Write Regular Liability Code => 1
Domestic Liability Code => 2
Agricultural Liability Code
=> 2
Write Subject Section => 6 (Political Subdivision
Group Account)
3
(501(c)(3) Non-Profit Group Account)
Write Subject Date (Effective
Date of Group Account)
1st
Taxable Wages Date (Effective Date of Group Account)
1st
Chargeable Quarter
Write Year
Qtr
Write Predecessor Account Number (Member Account
Number)
Brief
Name
Effective
Date
Joint
Application => 1 (Total)
=> 0
(Not Filed)
- Complete Form C-1C designating Reimbursing
Group Account.
- Place C-1C, C-10’s, C-1P, or C-1 along with the signed Form C-6C in this order into a red out card and place in the C-10’s basket.
- SOU will:
Retrieve
Forms C-10,
Assign
an account number to the Group Account, and
Send
Forms C-10 to Data Processing for keying.
- The SOU will mail output to the
employer enclosing the approved C-6C and place the
approved copy in the Doc Log & Destroy basket.
Once a Group Account has been established, it
may want to add additional members. The transaction
is recorded on Commission records as a total acquisition
from the predecessor (Individual Member Account)
to the successor (Group Account). Because all entities
comprising a Group Account are reimbursing employers,
there is no transfer of experience.
The addition of the new members is effective the
first day of the quarter in which the application,
Form C-6D, Joint Application for Addition of Members
to a Group Account, is received.
To add a member to a Group Account:
- Provide Form C-6D to the Group Account's agent.
A member cannot be added without a properly completed
Form C-6D.
- Review the completed Form C-6D. Return improperly
completed forms to the group's agent with a drafted
letter explaining the problem. The letter must be approved by your Supervisor.
- If Form C-6D is properly completed, date and
sign it on the Tax Director's behalf. Write "for" next to Director Tax Department.
- Mail the group's agent a copy of the approved
C-6D. Place the approved copy in the Doc Log & Destroy basket.
- Use the STA screen to inactivate each individual
reimbursing account becoming part of the Group
Account.
Access the STA Screen
Key ACCT
Press <Enter>
The record for the account will display.
Key REG SUSPD DT
NORPTDUE
REAS => 5
Key A SUCC (Group Account Number)
DT (Effective Date)
T/P => 1 (Total)
A/N => 0 (Not Filed)
Press <PF5> to add the record.
- Use the STA screen to add the additional members
to the Group Account.
Access the STA Screen
Key ACCT
Press <Enter>
The record for the account will display.
Key A PRED (Member Account Number)
DT (Effective
Date)
T/P => 1 (Total)
A/N => 0 (Not Filed)
Press <PF5> to add the record.
Once a Group Account has been established, some
of its members may want to leave the Group Account.
The effective date for deletion of members is the
end of the quarter in which the application, Form
C-6E, Joint Application for Withdrawal of Members
From a Group Account, is approved by the Commission.
To delete members from a Group Account:
- Provide Form C-6E to the Group Account's agent.
A member cannot be deleted without a properly
completed Form C-6E.
- Review the completed Form C-6E. Return improperly
completed forms to the group's agent with a drafted
letter explaining the problem. The letter must be approved by your Supervisor.
- If Form C-6E is properly completed, date and
sign it on the Tax Director's behalf. Write "for" next to Director Tax Department.
- Mail the group's agent a copy of the approved
C-6E. Place an approved copy in the Doc Log & Destroy basket.
- Use the STA screen to reactivate each member
account withdrawing from the Group Account.
Access the STA Screen
Key ACCT
Press <Enter>
The record for the account will display.
Key REG ACTVE DT
1ST
WGS
Key RPTS YY – start with first wages resume date.
Press <PF5> to add the record.
Note: New account numbers are needed if a member's
old account number has been terminated. Use Forms
C-10 when necessary to establish a new account.
See Chapter 1 - "New Accounts 201.023" and "New Accounts 201.026".
The members of a Group Account may decide to terminate
the account. The deadline to apply for termination
is December 1 to be effective at the beginning
of the next calendar year.
To terminate a Group Account:
- Provide Form C-6G, Joint Application For Termination
of a Group Account, to the Group Account's agent.
A Group Account cannot be terminated without
a properly completed Form C-6G.
- Review the completed Form C-6G. Return late
or improperly completed forms to the group's
agent with a drafted letter explaining the problem. The letter must be approved by your Supervisor.
- If Form C-6G is properly completed, date and
sign it on the Tax Director's behalf. Write "for" next to Director Tax Department.
- Use the STA screen to reactivate each member
account of the Group Account just terminated.
Access the STA Screen
Key ACCT
Press <Enter>
The record for the account will display.
Key REG ACTVE DT
1ST
WGS
Key RPTS YY
Press <PF5> to add the record.
Note: New account numbers are needed if a member's
old account number has been terminated. Use Forms
C-10 when necessary to establish a new account.
See Chapter 1 - "New
Accounts 201.023" and "New Accounts 201.026".
- Use the STA screen to terminate the Group Account.
Key REG SUSPD DT
NORPTDUE
REAS
=> 1
Key TERM REG => A
ON 1-1 => (Year
termination is effective)
Press <PF5> to add the record.
- Forward the approved Form C-6G to SOU with an approved copy for Doc Log & Destroy. They will mail the form and the system generated termination letter, FL-42, to the employer.
