Whenever one employer succeeds another employer in the operation of a business,
in whole or in part, though acquisition/merger or purchase/sale it's the
successor’s responsibility to:
- Notify BWC of the succession;
- Preserve the predecessor (former) employer’s payroll records
for five years preceding the date of succession.
The succeeding employer must notify BWC all such changes in business structure
to properly calculate the experience rating and to transfer the rights and
obligations to the new employer when appropriate.
For successions taking place on or after Sept. 1, 2006, BWC transfers any and all
existing and future liabilities or credits of the predecessor (former) employer, and
the experience rating when a new employer (successor) wholly succeeds another employer
in the operation of a business. If the new employer purchases or acquires only a
portion of the business, BWC only transfers that portion of the former employer’s
experience to the new employer. A BWC auditor inspects the former employer’s payroll
and claims records to allocate payroll and to identify the claims to be transferred
to the successor for rate calculation purposes.
If you acquire or purchase a business, complete and submit to BWC the Notification of
Business Acquisition/Merger or Purchase/Sale (U-118). If the succeeding employer does
not have Ohio workers’ compensation coverage, that employer must submit an
Application for Ohio Workers’ Compensation Coverage (U-3) in addition to the
Notification of Business Acquisition/Merger or Purchase/Sale (U-118).
Note: For successions taking place prior to Sept. 1, 2006 where all of an
operation was taken over by a succeeding employer, the experience transferred to the
new employer, but the transfer of the financial rights and obligations were optional.
BWC would transfer the account to the new owner if both the former employer and the
successor jointly complete and file the Application for Transfer of Workers’
Compensation Account and Premium Obligation to Succeeding Employer (U-9).
- Acquisition – When an existing business is purchased in whole or part
by another business. If only a portion of the business is purchased then
BWC will conduct an onsite audit to determine proper redistribution of
experience rating and premiums. If the entire business is purchased,
the purchaser (successor) will assume the experience of the business
(predecessor) being purchased.
- Merger - When two or more existing businesses combine to become one
entity under one policy number. All the pre-existing experiences of the
merged entities will be under the succeeding employer’s policy number.
If you have questions, please call 1-800-OHIOBWC, and follow the options.