{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/60.2-536.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/60.2-536.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/60.2-536.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/60.2-536.1.html"}],"law_id":80870,"edition_id":1,"section_id":80870,"structure_id":13145,"section_number":"60.2-536.1","catch_line":"Transfers for the purpose of obtaining a lower unemployment compensation tax rate; assignment of rates","history":"2005, cc. 47, 91.","full_text":"A\n\nIf an employer shall transfer any trade or business to another employer where, at the time of transfer, there is substantially common ownership, management, or control of the trade or business, then the unemployment experience attributable to the transferred business shall also be transferred to, and combined with the unemployment experience attributable to, the employer to whom such business is transferred. If the sole or primary purpose of such transfer is to obtain a lower unemployment tax rate, that employer shall be subject to the penalties established by § 60.2-536.3.B\n\nIf an employer shall transfer any trade or business to a person who is not otherwise an employer at the time of such transfer, and the sole or primary purpose of such transfer is to obtain a lower unemployment tax rate:1\n\nThe unemployment experience of the acquired business shall not be transferred to such person; instead, such person shall be assigned the higher of the transferred business’ calculated rate or the new employer rate under § 60.2-526; and2\n\nSuch person shall be subject to the penalties established by § 60.2-536.3.C\n\nAny person who shall knowingly advise another person to engage in a transfer of any trade or business, where the sole or primary purpose of such transfer is to obtain a lower unemployment tax rate, shall be subject to the penalties established by § 60.2-536.3.D\n\nThe Commission shall establish methods to identify and investigate the transfer or acquisition of a business for purposes of this section.1\n\nFor the purposes of determining whether there is “substantially common ownership, management, or control of two or more employers,” the Commission shall consider all relevant facts and circumstances, including the extent of commonality or similarity of: (i) ownership, (ii) any familial relationships, (iii) principals or corporate officers, (iv) organizational structure, (v) day-to-day operations, (vi) assets and liabilities, and (vii) stated business purpose.2\n\nFor the purposes of determining whether a business was transferred solely or primarily to obtain a lower unemployment tax rate, the Commission shall consider the facts and circumstances of the transfer, including: (i) the cost of acquiring the business, (ii) how long such business was continued, and (iii) whether a substantial number of new employees was hired to perform duties unrelated to the business activity conducted prior to the transfer.","order_by":null,"text":{"0":{"id":289876,"text":"If an employer shall transfer any trade or business to another employer where, at the time of transfer, there is substantially common ownership, management, or control of the trade or business, then the unemployment experience attributable to the transferred business shall also be transferred to, and combined with the unemployment experience attributable to, the employer to whom such business is transferred. If the sole or primary purpose of such transfer is to obtain a lower unemployment tax rate, that employer shall be subject to the penalties established by § 60.2-536.3.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":289877,"text":"If an employer shall transfer any trade or business to a person who is not otherwise an employer at the time of such transfer, and the sole or primary purpose of such transfer is to obtain a lower unemployment tax rate:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":289878,"text":"The unemployment experience of the acquired business shall not be transferred to such person; instead, such person shall be assigned the higher of the transferred business’ calculated rate or the new employer rate under § 60.2-526; and","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":289879,"text":"Such person shall be subject to the penalties established by § 60.2-536.3.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"C"},"4":{"id":289880,"text":"Any person who shall knowingly advise another person to engage in a transfer of any trade or business, where the sole or primary purpose of such transfer is to obtain a lower unemployment tax rate, shall be subject to the penalties established by § 60.2-536.3.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2","next_prefix":"D"},"5":{"id":289881,"text":"The Commission shall establish methods to identify and investigate the transfer or acquisition of a business for purposes of this section.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D1"},"6":{"id":289882,"text":"For the purposes of determining whether there is “substantially common ownership, management, or control of two or more employers,” the Commission shall consider all relevant facts and circumstances, including the extent of commonality or similarity of: (i) ownership, (ii) any familial relationships, (iii) principals or corporate officers, (iv) organizational structure, (v) day-to-day operations, (vi) assets and liabilities, and (vii) stated business purpose.","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"7":{"id":289883,"text":"For the purposes of determining whether a business was transferred solely or primarily to obtain a lower unemployment tax rate, the Commission shall consider the facts and circumstances of the transfer, including: (i) the cost of acquiring the business, (ii) how long such business was continued, and (iii) whether a substantial number of new employees was hired to perform duties unrelated to the business activity conducted prior to the transfer.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1"}},"ancestry":[{"id":13145,"edition_id":1,"name":"Computation of Tax Rate","identifier":"4","label":"article","depth":3,"order_by":1,"parent_id":13052,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":267753,"object_type":"structure","relational_id":13145,"identifier":"4","token":"60.2\/5\/4","url":"\/60.2\/5\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13052,"edition_id":1,"name":"Taxation","identifier":"5","label":"chapter","depth":2,"order_by":1,"parent_id":12883,"metadata":{},"date_created":"2026-06-26 03:44:11","date_modified":"2026-06-26 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This law was first created in 2005. The record of its establishment is cataloged in chapters 47<\/a> and 91<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":69818,"section_number":"60.2-536.2","catch_line":"Advisory opinion by the Commission","order_by":null,"url":"\/60.2-536.2\/"},{"id":71778,"section_number":"60.2-536.3","catch_line":"Violations; penalties","order_by":null,"url":"\/60.2-536.3\/"},{"id":70450,"section_number":"60.2-536.4","catch_line":"Interpretation","order_by":null,"url":"\/60.2-536.4\/"},{"id":87449,"section_number":"60.2-536.5","catch_line":"Definitions","order_by":null,"url":"\/60.2-536.5\/"}],"refers_to":[{"id":84523,"section_number":"60.2-526","catch_line":"General provisions","order_by":null,"url":"\/60.2-526\/"}],"permalink":{"id":267807,"object_type":"law","relational_id":80870,"identifier":"60.2-536.1","token":"60.2\/5\/4\/60.2-536.1","url":"\/60.2-536.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/60.2-536.1\/","token":"60.2\/5\/4\/60.2-536.1","dublin_core":{"Title":"Transfers for the purpose of obtaining a lower unemployment compensation tax rate; assignment of rates","Type":"Text","Format":"text\/html","Identifier":"\u00a7 60.2-536.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> If an employer shall transfer any trade or business to another employer where, at the time of transfer, there is substantially common ownership, management, or control of the trade or business, then the unemployment experience attributable to the transferred business shall also be transferred to, and combined with the unemployment experience attributable to, the employer to whom such business is transferred. If the sole or primary purpose of such transfer is to obtain a lower unemployment tax rate, that employer shall be subject to the penalties established by § 60.2-536.3<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If an employer shall transfer any trade or business to a person who is not otherwise an employer at the time of such transfer, and the sole or primary purpose of such transfer is to obtain a lower unemployment tax rate: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The unemployment experience of the acquired business shall not be transferred to such person; instead, such person shall be assigned the higher of the transferred business’ calculated rate or the new employer rate under § 60.2-526<\/a>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Such person shall be subject to the penalties established by § 60.2-536.3<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any person who shall knowingly advise another person to engage in a transfer of any trade or business, where the sole or primary purpose of such transfer is to obtain a lower unemployment tax rate, shall be subject to the penalties established by § 60.2-536.3<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The Commission shall establish methods to identify and investigate the transfer or acquisition of a business for purposes of this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> For the purposes of determining whether there is “substantially common ownership, management, or control of two or more employers,” the Commission shall consider all relevant facts<\/span> and circumstances, including the extent of commonality or similarity of: (i) ownership, (ii) any familial relationships, (iii) principals or corporate officers, (iv) organizational structure, (v) day-to-day operations, (vi) assets<\/span> and liabilities, and (vii) stated business purpose. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> For the purposes of determining whether a business was transferred solely or primarily to obtain a lower unemployment tax rate, the Commission shall consider the facts<\/span> and circumstances of the transfer, including: (i) the cost of acquiring the business, (ii) how long such business was continued, and (iii) whether a substantial number of new employees was hired to perform duties unrelated to the business activity conducted prior to the transfer. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nTRANSFERS FOR THE PURPOSE OF OBTAINING A LOWER UNEMPLOYMENT COMPENSATION TAX\nRATE; ASSIGNMENT OF RATES (\u00a7 60.2-536.1)\n\nA. If an employer shall transfer any trade or business to another employer\nwhere, at the time of transfer, there is substantially common ownership,\nmanagement, or control of the trade or business, then the unemployment\nexperience attributable to the transferred business shall also be transferred\nto, and combined with the unemployment experience attributable to, the employer\nto whom such business is transferred. If the sole or primary purpose of such\ntransfer is to obtain a lower unemployment tax rate, that employer shall be\nsubject to the penalties established by § 60.2-536.3.\n\nB. If an employer shall transfer any trade or business to a person who is not\notherwise an employer at the time of such transfer, and the sole or primary\npurpose of such transfer is to obtain a lower unemployment tax rate:\n\n 1. The unemployment experience of the acquired business shall not be\n transferred to such person; instead, such person shall be assigned the higher\n of the transferred business’ calculated rate or the new employer rate\n under § 60.2-526; and\n\n 2. Such person shall be subject to the penalties established by §\n 60.2-536.3.\n\nC. Any person who shall knowingly advise another person to engage in a transfer\nof any trade or business, where the sole or primary purpose of such transfer is\nto obtain a lower unemployment tax rate, shall be subject to the penalties\nestablished by § 60.2-536.3.\n\nD. The Commission shall establish methods to identify and investigate the\ntransfer or acquisition of a business for purposes of this section.\n\n 1. For the purposes of determining whether there is “substantially\n common ownership, management, or control of two or more employers,” the\n Commission shall consider all relevant facts and circumstances, including the\n extent of commonality or similarity of: (i) ownership, (ii) any familial\n relationships, (iii) principals or corporate officers, (iv) organizational\n structure, (v) day-to-day operations, (vi) assets and liabilities, and (vii)\n stated business purpose.\n\n 2. For the purposes of determining whether a business was transferred solely\n or primarily to obtain a lower unemployment tax rate, the Commission shall\n consider the facts and circumstances of the transfer, including: (i) the cost\n of acquiring the business, (ii) how long such business was continued, and\n (iii) whether a substantial number of new employees was hired to perform\n duties unrelated to the business activity conducted prior to the transfer.\n\nHISTORY: 2005, cc. 47, 91.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}