Compute tax rates for partial transfers of compensation
experience and adjust chargebacks and taxed wages
files to reflect the transfer of experience.
The goal of this function is to assure accuracy
in the computation of predecessor and successor
tax rates based on applicable experience.
The Experience Rating Unit performs this task
in accordance with Sec. 204.085 of the Texas
Unemployment Compensation Act.
Sec. 204.085 Contribution Rate for Successor
Employer
(a) A successor employing unit that is subject
to Section 204.083 or 204.084 and is an experience-rated
employer on the date of the acquisition shall
pay contributions from the date of the acquisition
until the end of the calendar year in which the
acquisition occurred at the rate applicable to
the successor employing unit on the date of the
acquisition.
(b) A successor employing unit that is subject
to Section 204.083 and 204.084 and is not an
experience rated employer on the date of the
acquisition shall pay contributions from the
date of the acquisition until the next tax rate
computation date at the highest rate applicable
at the time of the acquisition to any predecessor
employer who is a party to the acquisition.
The Rates accounts examiner assigned to the
partial transfer of compensation experience
has sixty (60) calendar days to complete the
work from the time the partial was assigned.
This period will be extended if the employer
did not submit all corresponding information.
The purpose of updating the Partial Transfer
Log is to provide State Office Tax personnel
with up to date information as to the status
of a partial transfer of experience tax rate.
Procedures:
Experience Rating Unit personnel updates the
log upon receipt of the partial transfer of
experience from the assistant section manager
of Status Section.
- Date issued to Rates
- Date issued to Rates AE
- AE Name
- Rates’ comments
- Completion Date
To record information on the spreadsheet you
have to access the partial log file named "Tracking
Spreadsheet for Partials.xls" that is
located on the Q drive. The file is password
protected. Get current password from Rates
Supervisor. The path to access the file is
Q:\TAX\__Partial Transfer Log.
Once you opened the file, find the account
number of the partial that you have to work.
Write the date that you receive/take the partial
on the cell that corresponds to row "your
account number" and column "Date
Issued to Rates AE".
Write the name of the accounts examiner assigned
to work the partial transfer on the cell that
corresponds to row "your account number " and
column "A.E. Name".
Save and close file.
The purpose of the Employer Tax Assignment
Log is to inquire/update information regarding
existing assignments and for processing new
assignments.
Procedures
The same Rating Experience Unit personnel
that updated the Partial Transfer Log will
process a new partial transfer of compensation
experience assignment to an accounts examiner
by using the Employer Tax Assignment Log. This
is the FTA screen on the EMF.
- Type FTA on the EMF
- Press Enter
- Enter the successor’s account number
on EID
- Press Enter
- Enter today’s date on ISSUE DATE
- Press TAB
- Enter S on ORIGIN
- Press TAB
- Enter ACC on TYPE
- Press TAB
- Enter the accounts examiner’s four-digit
number on EXAMINER
- Press Enter
The purpose of the Employer Tax System Assignment
Inventory is to allow the accounts examiner
assigned to work the partial transfer to view
data regarding current and past assignments.
In addition, the accounts examiner can change
the status of the assignment by accessing the
Employer Tax Assignment Log through Employer
Tax System Assignment Inventory.
An Experience Rating Unit accounts examiner
can view their assignment by:
Type FTI on EMF
Press Enter
For assignments in progress, enter A on
the STATUS field
For assignments completed month to date enter
C on the STATUS field
For 12 months of historically completed assignments,
enter H on STATUS field
Press Enter. You should be able to view assignments
based on the letter entered
To change the status of the partial transfer
from assigned to completed:
Type FTI on EMF
Press Enter
Press Enter again. This will allow you to
see all assignments in progress.
Position cursor to the left of the record
in question. You should be on the SEL field
for that record.
Type X.
Press Enter. These steps press the F5 key.
This will take you to the Employer Tax Assignment
Log for the selected account.
Change the letter R on the STATUS CODE field
to C.
Press Enter
Form C-82, Joint Application For Partial Transfer
of Compensation Experience. This Commission
form is a waiver of Partial Compensation Experience
by Predecessor. The predecessor waives only
his rights about the compensation experience
attributable to the part of the business, which
the successor acquired and continued. The employer
must fill in all the fields in this form.
It is Status Section responsibility for reviewing
this form. However, Rates accounts examiners
should double-check this form. Any questions
about the C-82s should be directed to the assistant
manager of the Status Section.
Verify that Document Locator Number (DLN)
appears at the top of the C-82.
Item 1
Acquisition date: Acquisition date on C-82
must be the same as acquisition date on the
EMF STS screen. TWC will not accept December
31 acquisitions unless the successor account
has its own liability in the fourth quarter.
List of predecessor’s segments of the
business:
Each Trade Name and Location: The different
parts of the business must be identifiable.
Nature of business: The different parts
of the business must be segregable.
Dates of First Wages Paid by Predecessor
Division: Dates of first employment of each
business segment.
Item 2
Verify parts of the predecessor’s business
is/are acquired by the successor.
Each Trade Name and Location: Parts acquired
must be contained on Item 1 list under the
same label.
Date Acquired: Date when the acquisition of
the predecessor took place.
Date of First Wages Paid by Successor: Dates
of first employment of the acquired business
segments.
Verify that the form has:
Original signatures of owner or officer of predecessor
and successor.
Notary signatures for the owner or officer of
predecessor and successor.
Form C-83, Wage Distribution
This form shows compensation experience that the
predecessor is waiving and transferring to the
successor, and the compensation experience that
the predecessor is retaining. not waiving, therefore,
keeping.
There must be one C-83 form for each quarter,
covering a maximum of four years before the year
of acquisition. If acquisition occurred in the
middle of the year, the employer has to send C-83s
for the four years prior, plus the quarters in
the acquisition year. If business acquired has
not been operating for at least four years, then
request a form C-83 for each quarter since business
started employment.
Check for legibility from a key entry point and
from a microfilming standpoint. If there is any
problem, contact the employer and request a better
copy.
The correct successor/predecessor account numbers
and styling must show in the successor/predecessor
boxes.
The quarter date must have a form consistent with
key entry standards: month-day-year. i.e. 10-31-00
or Oct 31, 00. (4/00 is not acceptable).
The body of the C-83 must list:
Column 1: Social Security Numbers in ascending
order.
Column 2: Employee’s Name
Column 3: Total wages as reported by predecessor:
amount of wages for each employee as reported on
the predecessor’s Form C-4 for that quarter.
Column 4: Total wages applicable to successor:
part of wages of each employee that corresponds
to successor.
Column 5: Total wages Retained by Predecessor
= Column 3 – Column 4
Bottom of the page:
Column 3 must have the wages as reported on the
Employers’ Quarterly Report by the predecessor
for the individual quarter (Column 3 = Column 4
+ Column 5). These figures should match the figures
on EMF for total wages and taxable wages.
Column 4 must have the amount of taxable wages
attributable to the successor part of the business.
Column 5 must have the amount of taxable wages
that the predecessor retained.
Each quarter must balance to the amount that the
predecessor originally reported. All the quarters
must total the predecessor’s rate figures
for that particular year. It is important that
this item is correct because it affects tax rate
computation. If you can not balance the predecessor’s
rate computation, then you can not finish the partial.
If attempt is unsuccessful, then: An accounts
examiner in the Rates unit will try to contact
the employer to resolve issues and make necessary
corrections.
Return the entire package to the employer.
Advice the employer in writing of your actions.
If partial acquisition occurred on of after October
7, 2002, then include on your letter to the employer
the date the 1-year rule expires.
Remove stop 16.
Place comment on FTC stating reasons why you can
not work the partial, along with attempts to contact
the employer to solve the problem.
Prepare Excel spreadsheet as follows:
| Acquisition Date |
| |
Predecessor
|
Successor
|
|
Account
|
|
|
|
Name
|
|
|
|
First Chargeable Quarter
|
|
|
There must be tables detailing the chargebacks,
and taxable wages (by quarters) that transfer to
the successor, and the ones that the predecessor
keeps.
| Chargebacks Table |
| Year |
Account Numbers
|
Chargebacks Retained by Predecessor
|
|
Predecessor
|
Successor
|
Follow the procedures below to fill in
this table.
To identify claims for a partial acquisition you
need two documents:
C-66a: Benefits- Employer Chargebacks (report
BNE615R1) is the agency’s record of the
predecessor’s chargeback history. This document
contains the amount of unemployment benefits
drawn in a quarter by claimants, and the base
period used when the claimant started the claim.
C-83: Wages Distribution Section of Joint Application
for Partial Transfer of Compensation Experience:
the employer provides this document, identifying
the wages to be moved from the predecessor to
the successor. Make sure you have at least sixteen
(16) quarters worth of C-83’s before the
acquisition date.
Procedures:
Find the C-66A that equates to the oldest quarter
necessary to calculate the first computed tax
rate after the acquisition.
I.e. If the partial acquisition date is 10-01-98,
then the first computed rate will be 01-01-99.
The rate computation period is 4-95 through 3-98;
therefore, you should start looking at C-66As
from 4-95.
The C-66As show the base period wages. Identify
the oldest quarter of the base period claim,
then look for the claims wages on the C-83 for
that quarter. You only need to identify those
claimants that appear under the ‘charges’ column
of the C-66A’s. If you do not have a C-83
for a quarter that has base period wages, then
assume that that particular quarter stays with
the predecessor.
If you found the claimant on the C-83 and the
C-66A, and they match, then mark chargebacks
applicable to the successor with an "S";
otherwise, mark it with a "P" for predecessor
next to the wages on the C-66A. Also, underline
the name, SSN, and wages on the C-83, and note
the I.C. Date to the right of the wages.
To save time, now that you have made a find,
look ahead to other C-83s in the base period
to see if you find the same claimant. We do this
to ensure that all the base period wages are
moving to the successor; make sure to note the
find as you did before.
If you can not find the base period wages on
the C-83, then note a "P", for predecessor,
next to the claim on the C-66A.
If a claimant has all his/her base period quarters
with a "P" then place a "P" next
to the charges for that claim. This same rule
applies if all base period quarters have an "S." However,
if the base period quarters have "S" and "P" then
you have to prorate the charges.
To prorate the charges you need to add all the
base period quarters that are going to the successor
account. Divide that amount by the total base
period amount. The quotient is the ratio of charges
corresponding to the successor. Multiply this
ratio by the total amount of charges for that
claimant and round the result to the nearest
hundredth. This will give you the total amount
of charges that need to move to the successor
account. Subtract this amount from the original
amount of charges. This figure is the amount
of charges remaining in the predecessor account.
Example:
| Base period wages by quarter |
Total
Charged |
1-02 1,000.00 P 2-02
1,500.00 S 3-02 1,000.00
S 4-02 500.00 S
|
4,000.00
166.15 |
Total base period wages corresponding to the successor
= 3,000.00
Total base period wages = 4,000.00
Ratio of charges going to successor => 3,000.00/
4,000.00 = 0.75
Total amount of charges going to successor => 0.75
* 166.55 = 124.9125
Total amount of charges going to successor rounded
to the nearest hundredth => 124.91
Total amount of charges staying with the predecessor
=> 166.15 – 124.91 = 41.24
After you successfully identified the quarter’s
chargebacks, add up all the chargebacks belonging
to the successor and those staying with the predecessor.
Circle the total for that quarter and write "S" with
the amount moving to the successor and "P" with
the adjusted amount staying with the predecessor.
| Taxable Wages Table |
|
Quarters
|
Account Numbers
|
Taxable wages retained by predecessor
|
|
Predecessor
|
Successor
|
Determine which year to proof and add the successor
and predecessor charges and wages. Compare the
totals obtained with the figures on RAT file.
You should proof to the figures for the next
year’s tax rate computation if the information
is available. If the information is not available,
proof to the figures for the year of acquisition.
This means that if the acquisition that you
are working is before the current year, then
proof to the figures for the years after the
year of acquisition through current year. If
the acquisition that you are working is in the
current year, then proof to the figures for the
year of acquisition.
For Example:
- 2002 acquisition worked in 2004. Then proof
to the figures for 2003 and 2004. The successor
may get a transfer rate from the predecessor
for 2002 if successor became an employer in
the quarter of acquisition.
- 2003 acquisition worked in 2003. Then proof
to the figures for 2003 only.
If you have multiple successors, list the predecessor
account number, then the successors account numbers
and names and the acquisition date. Detail the
chargeback information first-what goes to the successor
and what information the predecessor keeps. Prepare
the taxable wage data the same way you did the
chargebacks. Write your instructions at the bottom
spreadsheet. The information on the successor and
predecessor first chargeable quarters is generally
toward the top of the page, but wherever it is,
make sure it is noticeable.
Write your partial instructions. Generally, the
first line states, "Assign the ____% rate
of the predecessor for ____" (the year of acquisition)
and then, " compute an annual/interim rate
for ______" (the next year).
Type your name and the approval date of the partial
at the bottom of the spreadsheet.
Verify payments for voluntary contributions under
the predecessor account. If there is any voluntary
contribution payment applied to quarters used for
combined experience under the successor/s account,
you may need to transfer the whole payment or prorate
it.
Use the STA screen to change the first chargeable
quarter and "partial approved" information.
Make sure to type the letter "C" at
the left of the line that contains the information
for the partial, then change the "0",
partial not approved, to "5", partial
approved. To make the changes effective, you have
to press the key labeled F5. Otherwise the changes
will not work.
The Transfer Taxable Wages (RTW) transfers the
taxable wages. Make sure to write "P" for
partial transfer although you may transfer the
whole amount for a quarter. For this screen, you
need to have the paid date for each quarter in
question. You may have multiple entries per quarter,
depending on the payment dates. You will have to
prorate any late payments to compensate both accounts
equally. We do this to avoid on time monies in
one account and not the other.
The Chargeback Adjustment screen (RCA) adds the
chargebacks to the successor account or deletes
them from the predecessor account. The changes
on the RCA screen must be permanent adjustments
not temporary. You must use the RCA screen for
both the predecessor and successor.
You may use all the screens in the same day; otherwise,
you may want to use half the screens one-day and
the other half the next day depending on how much
information you input. If
you split using the screens, then change the rate
and approve the partial on the first day. This
will show anyone who accesses the STS that you
nearly finished the partial. Overnight processing
of the partial can cause the system to recompute
the predecessors rates in error. If this occurs
you will use RRI to set the rates back to the correct/original
calculation.
Change the rate(s) via the Rate Input (RRI) screen.
If you used the RRI screen correctly, then the
rate notices will come in the next day’s tax
run. Mail corrected rate notice/s with letter of
explanation to successor. Write a letter to the
successor to let them know about the rate change(s).
You will write a letter to the predecessor only
if their rate changes as a result of the partial
transfer.
Use the STA screen to change the first chargeable
quarter and "partial approved" information.
Make sure to type the letter "C" at
the left of the line that contains the information
for the partial, then change the "0",
partial not approved, to "5", partial
approved. To make the changes effective, you have
to press the key labeled F5. Otherwise the changes
will not work.
The Transfer Taxable Wages (RTW) transfers the
taxable wages. Make sure to write "P" for
partial transfer although you may transfer the
whole amount for a quarter. For this screen, you
need to have the paid date for each quarter in
question. You may have multiple entries
per quarter, depending on the payment dates. You
will have to prorate any late payments to compensate
both accounts equally. We do this to avoid on time
monies in one account and not the other.
The Chargeback Adjustment screen (RCA) adds the
chargebacks to the successor account or deletes
them from the predecessor account. The changes
on the RCA screen must be permanent adjustments
not temporary. You must use the RCA screen for
both the predecessor and successor.
You may use all the screens in the same day; otherwise,
you may want to use half the screens one-day and
the other half the next day depending on how much
information you input. If
you split using the screens, then change the rate
and approve the partial on the first day. This
will show anyone who accesses the STS that you
nearly finished the partial. Overnight processing
of the partial can cause the system to recompute
the predecessors rates in error. If this occurs
you will use RRI to set the rates back to the correct/original
calculation.
This process takes place after you changed the
rate/s for the partial, and moved wages and chargebacks.
Check the predecessor and successor account numbers
for accuracy on all partial forms. The page and
wage data and quarter date should be compatible
with Data Processing standards. Your accounts examiner
number must be printed on the "Audited by" box
(top right corner) of each C-83 that you reviewed.
You must place the C-83s in a designated area
in successor account number order. Once a week,
usually on Friday, an accounts examiner fills out
a route sheet with filming and keying instructions,
and sends the bundle to Micrographics. When the
C-83's are returned make sure to keep the Route
Sheet with each rubber-banded group in case of
having to re-key the information. Scanner Operations
needs the Route Sheet for reference purposes.
Micrographics, assigns a Document Locator Number
(DLN) to each C-83, films the documents and forwards
the forms to Key Entry via Scanner Operations.
Key Entry writes the social security numbers, names,
wage amounts and DLN into the System, and returns
the documents to the Experience Rating Unit.
Make sure to keep the Route Sheet with each rubber-banded
group in case of having to re-key the information.
Scanner Operations needs the Route Sheet for reference
purposes.
As you are flipping through the C-83s, glance
at the DLN to be sure it was legible or the C-83
may not show up on the Document Log (TDO).
A yellow "post-it" note at the front
of the batch shows problems that Microfilms or
Key Entry identified. If any problems come up,
such as a wrong account number or questionable
quarter date, then the key operator was unable
to keep up with the keying process. Make the necessary
correction, put a check mark through the annotation
and, leaving the "post-it" note attached,
take the correction with the Route Sheet back to
Scanner Operations.
Check the TDO to make sure that Microfilm and
Scanner Operations filmed and keyed every quarter
that was necessary to finish the partial. For this,
you will need to look at the STS to note the acquisition
date. Make sure each C-83 that you have is on the
Document Log. The C-83s are in sequential order
on the TDO, so you can easily check if any are
missing. Missing quarters are due to a C-83 skipped,
lost, or that had an error making it not keyable.
Try ordering some sample copies of the C-83s off
the TDO to check the quality of the filming. If
the copy is not very clear due to the filming process,
you may want to save the originals to work the
future year's tax rates. If the copy is okay, then
you can place the C-83s in the burn box.
Please note if you do not save the original C-83s,
you will need to order them off the TDO to work
future rates for the predecessor/successor. That
will involve time to order, time to process, whereas,
if you save the originals, you get to use the original
copy, you have them instantly as you saved them
at your desk.
You should identify chargebacks for the most
current quarter available when you work a partial,
not the last one for figuring the current rate.
For example, if you are working a year-2000 partial
on July 1, 2000, you will probably proof to the
year-2000 rate figures. This means that only the
division of chargebacks through 3/99 is necessary
for the proof figures, but the chargebacks for
4/99 and 1/00 are available and you need to identify
them.
You should check to see which claimants and how
much of the charges moved to the successor account
in the first CHARGEBACK UPDATE (after Scanner Operations
keyed the C-83s). One way is to check the RVC for
the predecessor to see if they have any negative
chargeback amounts. Negative chargeback amounts
occur when the charges move out of the predecessor
account and over to the successor account causing
your original RVC entry to be invalid.
You can view the Charges by Employer Account (CBCE)
screen to determine how far back you need to go
in ordering the Chargeback Inquiry Report (BE615)
under the predecessor and successor accounts. Compare
them to the BE615 that you used to work the partial
initially. That will give you an idea when the
first charges moved out of the predecessor and
into the successor accounts.
The current quarter being keyed in Key Entry determines
how much of the chargebacks moves. You can access
charges by Claimant SSN (CBCS) and Claim Wage Detail
(MDCW) to see where the cut-off occurs. Make a
+ or - to your original permanent chargeback adjustment
via the RCA screen to reflect the status of the
chargebacks now.
You may have to monitor numerous quarters after
the partial acquisition date until the Base Period
Wages (BPW) are no longer being considered in a
claim. You can consider yourself through identifying
claimants only when the BPW are no longer being
used in current claims.
