"Successor" is the employing unit which acquires substantially all of a business and "predecessor" is the employing unit which last operated the business. For the purposes of rate computation, all of the predecessor's payroll and benefit costs will be transferred to the successor if the successor has acquired the business or all or substantially all of the assets of the predecessor business and the predecessor has ceased to operate subsequent to the acquisition. To "acquire" the assets means to come in possession of, control of, or the right to the use of assets by any legal means such as by purchase, gift, lease or sub-lease, repossession, change in the form of ownership, inheritance, or foreclosure. It is not necessary to purchase the assets in order to have acquired the right to their use, nor is it necessary for the predecessor to have actually owned the assets for the successor to have acquired them.
Additionally, as a successor employer you assume the liability for any unpaid contributions owned by your predecessor. It is your responsibility to withhold a sufficient amount of the purchase money to cover the amount of any contribution, interest, and penalty that may be due to DWS from your predecessor prior to the transfer.
It is recommended that you obtain access to your predecessor's personnel records in order to furnish DWS with wage and separation information on individuals employed by your predecessor prior to the transfer. This allows you the opportunity to request relief of charges, based on the separation, and reduce the potential liability against your account.