|OhioBWC - Basics: State Fund Mergers and Acquisitions|
Acquisition/Merger or Purchase/Sale of a business
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:
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).
If you have questions, please call 1-800-OHIOBWC, and follow the options.