14. Predecessor / Successor Information

 

Complete this section if the registering business entity is succeeding a predecessor (prior owner) in whole or in part.

Predecessor: A business entity that transfers all or part of its organization, trade or business from another business entity.

Successor: A business entity that acquires by transfer all or part of the organization, trade or business from another business entity.

The registering business entity may apply for the Unemployment Compensation (UC) experience record and reserve account balance of the predecessor by completing Section 15, Application for PA UC Experience Record and Reserve Account Balance of Predecessor.

The Department of Labor and Industry may determine that a transfer of experience from predecessor to the registering business entity will be mandatory provided there is common ownership or control, either directly or indirectly between the predecessor and the registering entity.

  • Provide predecessor information as required on the form.
  • Select from the drop-down box how the business was acquired.

Purchase: Occurs when operations continue by a new owner; for example, a purchase of all or part of the business entity.

Change in Legal Structure: Occurs when the form of organization changes; for example, when a sole proprietorship incorporates, or forms a partnership.

Consolidation: Occurs when a new corporation forms by combining two or more corporations, which then cease to exist.

Gift: Occurs when the title to the property is transferred without consideration.

Merger: Occurs when one corporation is absorbed by another. One corporation preserves its original charter or identity and continues to exist and the other corporate existence terminates.

IRC Section 338 Election: Occurs when a stock purchase is treated as an asset purchase under the Internal Revenue Code Section 338.

  • Enter the date the business operation was acquired.
  • Enter the percentage of the predecessor's total business operation acquired. Total business operation is defined as all activities reportable under a single federal Employer Identification Number (EIN) including any activities occurring outside of PA.
  • Enter the percentage of the predecessor's PA business operation acquired. If less than 100 percent, provide the additional information as requested on the form.
  • Describe the PA business activity(s) that the registering business entity acquired from the predecessor.
  • Check the appropriate box(s) to indicate the type(s) of assets acquired from the predecessor.
  • Enter the date the predecessor last paid wages in PA, if applicable.
  • Enter the date the predecessor ceased operations in PA, if applicable. If operations have not ceased, describe the predecessor's ongoing business activity in PA.
  • Check the appropriate box(s). If "Yes", provide the information requested on the form.