This section discusses a special type of account commonly referred to as a C-111 account.

A C-111 account is a special type of account which is established when an Employer resumes paying wages (prior to termination) after transferring its experience to another Employer Identification Number (EID).

The term C-111 account is not widely recognized outside of the Status Section. C-111 accounts acquired their name from an obsolete data entry form numbered C-111.

Prior to September 1, 2005:

C-111 accounts are established whenever an Employer transfers its experience to another EID and resumes paying wages (without reacquiring that same EID number and experience) prior to terminating. The C-111 account is set up because the entity is still defined as an Employer per the TUCA until it terminates.

A new EID is necessary because no experience remains with the Employer's original EID.

Effective September 1, 2005:

SUTA legislation required that both total and partial successors share the compensation experience of the business acquired if common ownership or common management and control exist. In such cases, the compensation experience remains with the predecessor so there is no need to establish a C-111 account.

The only time a C-111 account is needed in regards to acquisitions occurring after September 1, 2005 is when the all the experience has been transferred through the filing of 2 or more Applications for Partial Transfer of Compensation Experience (C-82's and C-83's).

The C-82's and C-83's continue to be voluntary and is the only means of physically moving the experience from one account to another for acquisitions occurring on or after September 1, 2005.

If the predecessor account is closed and shows two or more partial acquisitions (2/5 P-JA-A and/or 3/5 P-PA-A) the accounts examiner will need to review the RAT and RDT screens to make sure no charges/experience (taxable wages) remains on the account. If the accounts examiner is not sure consult with your supervisor who in turn may need to discuss it with the Experience Rating Unit. If no charges/experience (taxable wages) remain in the predecessor account then a C-111 account will have to be assigned. The reason being that the predecessor no long has experience associated with the account.

Because C-111 accounts will not pass STA Screen edits they must be processed using Form C-10. Two Form C-10s are required; one Form C-10 is processed to the Employer's old EID and the second is processed to the Employer's C-111 account which is the new EID.

Before completion of the Form C-10s, the Accounts Examiner should assign a new pending account number to the Employer if one has not already been assigned. See Chapter 10 - “Assigning Pending Account Numbers” for more information.

The purpose of this Form C-10 is to provide a cross reference between the Employer's old EID and their new EID.

Sometimes an Employer will resume paying wages under a different employment type. For example an Employer originally liable under regular employment might resume paying wages under domestic or agricultural employment. When this occurs, it is proper to establish a C-111 account only if the Employer incurs liability under the new employment type prior to termination of their previous account.

Consider an Employer, liable under regular employment, who transfers their experience to another Employer and subsequently resumes paying wages under domestic employment. A C-111 account should be established for the Employer only if the Employer becomes liable under domestic employment prior to termination of their previous account.

When establishing a C-111 account for an Employer who resumed under a different employment type, ensure that the previous subject section can be used under the new employment type. The following chart details what sections are permissible for regular, domestic and agricultural employment.

According to the chart section 201.021 is not permitted under domestic and agricultural employment.

Any attempt to use an improper subject section will result in a failed transaction.

If the old subject section can be used under the new employment type, use the old subject section when establishing the C-111 account.

If the old subject section cannot be used when establishing the C-111 account use section:

201.021 under regular employment,
201.027 under domestic employment,
201.028 under agricultural employment.