A successor employer is one who buys an existing business and "inherits" the unemployment account of the predecessor.  If unemployment benefits have been paid over the last five years, or if the account has a "negative balance", chances are the successor will have a rate in excess of the 2.7 percent levied on new businesses.  In other words, an employing unit has acquired the organization, trade, business, in whole or in part, of another employing unit (predecessor).

A successor employer may also be an employer who has acquired 75% or more of the Michigan assets of the predecessor and/or has acquired their Michigan organization, trade, or business.