Effective: September 5, 2005
Latest Legislation: Senate Bill 81 - 126th General Assembly
(A) No person shall acquire the trade or business of an employer, or a portion thereof, solely or primarily for the purpose of obtaining a lower rate of contributions under sections 4141.09, 4141.23, 4141.24, 4141.241, 4141.242, 4141.25, 4141.26, and 4141.27 of the Revised Code.
(B) In determining whether the trade or business was acquired solely or primarily for the purpose of obtaining a lower rate of contributions, the director shall use objective factors that may include all of the following:
(1) The cost of acquiring the trade or business;
(2) Whether the person continued the trade or business of the acquired trade or business;
(3) If the trade or business was continued, how long the trade or business was continued;
(4) Whether a substantial number of new employees were hired for performance of duties unrelated to the business activity conducted prior to the acquisition.
(C) If a person knowingly violates, attempts to violate, or advises another person in a way that results in a violation of division (A) of this section or any other provision of this chapter related to determining the assignment of a contribution rate, the person is subject to the following penalties:
(1) If the person is an employer, the director shall assign the employer the highest maximum rate or penalty rate assignable under this chapter for the rate year during which the violation or attempted violation occurred and the three rate years immediately following that rate year, except that, if the person's business is already at the highest rate for any of those years, or if the amount of increase in the person's rate would be less than two per cent for that year, then an additional penalty rate of contributions of two per cent of taxable wages shall be imposed for that year.
(2) If the person is not an employer, the director shall assess a fine of five thousand dollars.
(D) The director shall deposit any fine collected under division (C)(2) of this section into the special administrative fund established under section 4141.11 of the Revised Code.
(E) The director shall credit fifty per cent of amounts paid to the director under rates determined pursuant to division (C)(1) of this section to the individual employer's account and fifty per cent to the mutualized account established pursuant to division (B) of section 4141.25 of the Revised Code.
(F) The director shall round the contribution rates the director determines under division (C)(1) of this section to the nearest tenth of one per cent.
(G) For purposes of this section:
(1) "Knowingly" means having actual knowledge of or acting with deliberate ignorance or reckless disregard for the prohibition involved.
(2) "Person" has the same meaning as under "The Internal Revenue Code of 1986," 100 Stat. 2138, 26 U.S.C. 7701.
(3) "Trade or business" includes the employer's workforce.
(4) "Violates or attempts to violate" includes, but is not limited to, intent to evade, misrepresentation, or willful nondisclosure.
Structure Ohio Revised Code
Chapter 4141 | Unemployment Compensation
Section 4141.01 | Unemployment Compensation Definitions.
Section 4141.031 | Appointment of Agricultural Ombudsperson.
Section 4141.04 | Free Employment Services.
Section 4141.042 | Promoting Employment Competencies and Upward Mobility of Women.
Section 4141.046 | Prohibition Against Accepting Compensation for Securing Employment.
Section 4141.06 | Unemployment Compensation Review Commission.
Section 4141.07 | Non-Lawyer Representatives - Commission or Representative Fees Prohibited.
Section 4141.08 | Unemployment Compensation Advisory Council.
Section 4141.10 | Unemployment Compensation Administration Fund.
Section 4141.11 | Unemployment Compensation Special Administrative Fund.
Section 4141.12 | Unemployment Compensation Modernization and Improvement Council.
Section 4141.13 | Director of Job and Family Services - Additional Duties.
Section 4141.131 | Sale of Real Property.
Section 4141.162 | Establishing Income and Eligibility Verification System.
Section 4141.17 | Oaths, Depositions, and Subpoenas.
Section 4141.18 | Employer Shall Keep Employment Record.
Section 4141.20 | Employers to Furnish Information to Director - Quarterly Reports - Forfeiture.
Section 4141.22 | Divulging Information.
Section 4141.23 | Employer Contributions - Payments in Lieu of Contributions.
Section 4141.231 | Satisfying Employer's Deficiency.
Section 4141.24 | Employer Accounts.
Section 4141.241 | Nonprofit Organizations as Employers.
Section 4141.242 | Public Entities as Employers.
Section 4141.25 | Contribution Rates.
Section 4141.251 | Unemployment Compensation Interest Contingency Fund.
Section 4141.26 | Notifying Employer of Contribution Rate.
Section 4141.27 | Proceeding Against Employer Who Fails to Comply.
Section 4141.28 | Determination of Benefit Rights and Claims for Benefits.
Section 4141.281 | Appeal to Director.
Section 4141.282 | Appeal to Court.
Section 4141.283 | Unemployment Due to Labor Dispute.
Section 4141.284 | Child Support Obligations.
Section 4141.285 | Unemployment Caused by Major Disaster.
Section 4141.286 | Mandatory Checks for Determining Benefit Rights and Eligibility.
Section 4141.29 | Eligibility for Benefits.
Section 4141.291 | Voluntarily Quitting to Accept Recall.
Section 4141.292 | State Disaster Unemployment Benefit Payment.
Section 4141.293 | Participation in Learn to Earn Program.
Section 4141.30 | Paying Benefits.
Section 4141.301 | Extended Benefit Period.
Section 4141.31 | Benefits Reduced by Remuneration.
Section 4141.32 | No Waiver or Assignment of Benefits.
Section 4141.321 | Federal Income Tax Deducted or Withheld.
Section 4141.33 | Seasonal Employment.
Section 4141.35 | Fraudulent Misrepresentations to Obtain Benefits - Other Reasons.
Section 4141.36 | Deductions From Salaries Not Permitted Except for Private Benefits.
Section 4141.37 | Compliance by Firm or Corporation Mandatory.
Section 4141.38 | Prohibition Against Failure to Make Reports or Pay Contributions.
Section 4141.40 | Prohibition Against Violations Not Otherwise Specified.
Section 4141.43 | Cooperation With Federal, State, and Other Agencies.
Section 4141.431 | Domestic Service in Private Home.
Section 4141.432 | Unemployment Compensation Administrative Support Other Sources Fund.
Section 4141.45 | Right to Amend or Repeal.
Section 4141.46 | Liberal Construction of Statutes.
Section 4141.48 | Acquisition of Trade or Business to Lower Contribution Rate Prohibited.
Section 4141.50 | Sharedwork Ohio Definitions.
Section 4141.51 | Participation in Sharedwork Ohio.
Section 4141.52 | Commencement and Duration of Shared Work Plan.
Section 4141.53 | Eligibility for Shared Work Compensation.
Section 4141.54 | Employees Who Satisfy Availability Requirement.