Edd

American Employers Group, Inc., appeals from the dismissal of its action following the denial of its petition for writ of mandate and the sustaining of a demurrer without leave to amend. We find no error and affirm.

FACTUAL AND PROCEDURAL SUMMARY

Unemployment Insurance Code sections 135.1 and 135.2 codify the tax concept of unity of enterprise. Under these provisions, the Employment Development Department (EDD) is authorized to consolidate multiple businesses united by factors of ownership or control into a single employing unit for purposes of determining the rate of employer contributions. These statutes are aimed at preventing a tax evasion practice known as “SUTA dumping.” As explained in an information sheet published by the EDD, SUTA dumping “includes acts to manipulate state account numbers and the [unemployment insurance] experience rating process. When a low [unemployment insurance] rate is obtained, payroll from another entity with a high [unemployment insurance] tax rate is shifted to the account with the lower rate. The entity with the higher rate is then ‘dumped.’ The entity inactivates the higher rated account and the charges are apportioned to the rest of…