unemployment insurance

hrdisney

We have a company that has been closed down under company name x. Now there is company y who will be purchasing what was formerly company x (this company will have ne id #s, etc.). Under unemployment insurance in MD if an ee who was under company x files an unemployment claim under company x does that automatically get covered under company y since company y bought company x? Thank you.

Don D

I noticed you hadn't had an answer from your state. I can't fully answer since I'm in MS. but I think I can refer you. Call your local or state office of the Employment Security Commission or Employment Commission or Unemployment Insurance Division of your State DOL. Ask for a the UI Tax Division. They will readily have the answer to your question. you may have to know some degree of detail about the acquisition and it would be very helpful if you knew the UI account number of the closed company. Hope this helps.

marc

This is more of an issue about how the company was acquired than how the Unemployment Insurance in MD reads.

If the company bought the stock to acquire ownership, then it would assume all liabilities, however the company can acquire the assets without being on the hook for the liabilities.

Don D

Sounds like one I would defer to a finance guru. I do know that each employing establishment is required to register with the state DOL UI Tax Division and pay quarterly UI taxes into the system unless they have some other arrangement such as dollar for dollar assessment for UI benefits. When a business folds, its tax consequences for UI purposes die with it as long as the taxes have been paid. This is one for the UI Tax experts to answer for you.