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Discussion Forum Index --> Tax Questions --> Change of UI rate when change of entity? CA
Casper (talk|edits) said:
| 7 January 2006
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| I received the DE2088 form from the State of California EDD stating the Employer's UI rate for tax year 2006. However, effective 1/1/06, the client incorporated from a sole proprietorship. The EDD said the client would keep their same Employer account number. However, do I still use the 6.2% stated on the DE2088 for TY06 or does it revert to the 3.4% used for the first year of every new business? I'm gussing that since it's not really a new business, only a change in entity, that the 6.2% UI rate would continue to be used. What has your experience shown?
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DZCPA (talk|edits) said:
| 8 January 2006
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| A corporation looks like a new business to me. Go with the lower rate they gave you.
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Skhyatt (talk|edits) said:
| 8 January 2006
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| I would say, same account number=same rate. I would call and ask to be sure.
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