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Franchise Asset Buyer Didn’t Inherit Seller’s Unemployment Tax Experience Rating

M&A Stories November 2, 2020 Introduction A company’s unemployment insurance liability depends upon its experience rating; the employee turnover history of the business. A buyer of the assets of a business usually starts with a lower unemployment liability than the

Posted in franchise sale, seller's unemployment experience rating Tagged with:

$3.5 Million Buyer Refund – No Transfer of Seller Unemployment Comp Experience

July 10, 2020 Introduction One tax expense to project when buying the assets of a business is unemployment compensation tax. Especially if the buyer is going to hire the seller’s employees. A potential risk for the buyer is inheriting a

Posted in seller's unemployment experience rating, successor liability Tagged with: ,

Business Buyer Sues Seller for Undisclosed Poor Unemployment Insurance Experience Rating

Introduction An asset business buyer can sometimes see its post-closing unemployment or workers compensation insurance experience rating unexpectedly jump after acquiring a business. The deal In this case, a company with a normal New York unemployment insurance experience rating acquired

Posted in seller's unemployment experience rating, seller's workers compensation experience rating, successor liability, Uncategorized

Buyer of Colorado restaurant assets stuck with seller’s higher unemployment tax rate liability even though buyer did not retain seller’s employees

Buyer began operating a restaurant in Palisade, Colorado (about 17 miles east of Grand Junction) after it acquired nearly all of the assets of Seller, which previously operated a different restaurant at the same location. Buyer acquired approximately 90% of

Posted in seller's unemployment experience rating, successor liability

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