11 code 086 potential successor suspected base wage records
Potential Successor Suspected Base on Wage Records - Code 086
This edit is the “flip side” of the Potential Predecessor check. Essentially, it will flag an employer that has a high employment level that appears to be migrating to another employer, according to wage record data. This edit only applies to private-ownership employers that are experience-rated singles or masters. They must have had sufficiently high employment in the prior quarter (i.e., exceeding the PK086 tolerance), and must either be no longer active in the current quarter or, at a minimum, not show any reported employment in the current quarter. In addition, if there is already an actual successor account assigned to this employer, then it is ineligible for this edit. Stating these preconditions as an equation looks like the following–
The eligible employers are checked against potential successor data, found in the Predecessor Successor Potential File). The largest potential successor’s shared employee count is tested against the Potential Predecessor/Successor Percentage Limit (PK087). If the count is greater, then Edit code 086 is flagged, since the potential successor is large enough to be considered a potential association. The equation for this assignment appears below:
EmplBigPot is the associated employee count of the biggest potential successor. This is considered a crucial-level condition. BLS classification code: A.1.5. EXPO “G” code: B086.
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