Kentucky Statutes 341.270 – Determination of employer’s contribution rate
Current as of: 2024 | Check for updates
|
Other versions
(1) Except as otherwise provided in this section, each employer’s contribution rate shall be three percent (3%). Effective for employers who become subject to this chapter on or after January 1, 1999, except as otherwise provided in this section, each employer’s contribution rate shall be two and seven-tenths percent (2.7%).
(2) Except as otherwise provided in this section, no subject employer‘s contribution rate shall be less than two and seven-tenths percent (2.7%), unless he or she has been an employer subject to the provisions of this chapter for twelve (12) consecutive calendar quarters ended as of the computation date. In any calendar year in which the rate schedule prescribed in subsection (3)(a) of this section is in effect, no subject employer who was assigned an entry rate of three percent (3.0%) under the provisions of subsection (1) of this section prior to January 1, 1999, shall have a contribution rate less than two and eight hundred fifty-seven thousandths percent (2.857%), unless subject to this chapter for the minimum time period specified above.
(3) For the calendar year 2001 and each calendar year thereafter, employer contribution rates shall be determined in accordance with “Table A” set out in subsection (4) of this section. For each calendar year, the secretary shall determine the rate schedule to be in effect based upon the “trust fund balance” as of September 30 of the preceding year. If the “trust fund balance”:
(a) Equals or exceeds one and eighteen hundredths percent (1.18%) of the total wages paid in covered employment in the state during the state fiscal year ended as of June 30 of that year, the rates listed in the “Trust Fund Adequacy Rates” schedule of “Table A” shall be in effect;
(b) Equals or exceeds five hundred million dollars ($500,000,000) but is less than the amount required to effectuate the “Trust Fund Adequacy Rates” schedule as provided in paragraph (a) of this subsection, the rates listed in “Schedule A” of “Table A” shall be in effect;
(c) Equals or exceeds three hundred fifty million dollars ($350,000,000) but is less than five hundred million dollars ($500,000,000), the rates listed in “Schedule B” of “Table A” shall be in effect;
(d) Equals or exceeds two hundred fifty million dollars ($250,000,000) but is less than three hundred fifty million dollars ($350,000,000), the rates listed in “Schedule C” of “Table A” shall be in effect;
(e) Equals or exceeds one hundred fifty million dollars ($150,000,000) but is less than two hundred fifty million dollars ($250,000,000), the rates listed in “Schedule D” of “Table A” shall be in effect; and
(f) Is less than one hundred fifty million dollars ($150,000,000), the rates listed in “Schedule E” of “Table A” shall be in effect.
(4) For the calendar year 1982 and each calendar year thereafter, contribution rates shall be determined upon the basis of an individual employer’s reserve ratio as of the computation date and the schedule of rates established under subsection (3) of this section. Except as otherwise provided in this section, the contribution rate for each subject employer for the calendar year immediately following the computation
date shall be the rate in that “Schedule” of “Table A,” as set out below, effective with respect to the calendar year, which appears on the same line as his or her reserve ratio as shown in the “Employer Reserve Ratio” column of the same table.
TABLE A Rate Schedule
Employer Trust A B C D E Reserve Fund
Ratio Adequacy
Rates
8.0% and
over 0.000% 0.30% 0.40% 0.50% 0.60% 1.00%
7.0% but
under 8.0% 0.000% 0.40% 0.50% 0.60% 0.80% 1.05%
6.0% but
under 7.0% 0.008% 0.50% 0.60% 0.70% 0.90% 1.10%
5.0% but
under 6.0% 0.208% 0.70% 0.80% 1.00% 1.20% 1.40%
4.6% but
under 5.0% 0.508% 1.00% 1.20% 1.40% 1.60% 1.80%
4.2% but
under 4.6% 0.808% 1.30% 1.50% 1.80% 2.10% 2.30%
3.9% but
under 4.2% 1.008% 1.50% 1.70% 2.20% 2.40% 2.70%
3.6% but
under 3.9% 1.308% 1.80% 1.80% 2.40% 2.60% 3.00%
3.2% but
under 3.6% 1.508% 2.00% 2.10% 2.50% 2.70% 3.10%
2.7% but
under 3.2% 1.608% 2.10% 2.30% 2.60% 2.80% 3.20%
2.0% but
under 2.7% 1.708% 2.20% 2.50% 2.70% 2.90% 3.30%
1.3% but
under 2.0% 1.808% 2.30% 2.60% 2.80% 3.00% 3.40%
0.0% but
under 1.3% 1.908% 2.40% 2.70% 2.90% 3.10% 3.50%
-0.5% but
under -0.0% 6.500% 6.50% 6.75% 7.00% 7.25% 7.50%
-1.0% but
under -0.5% 6.750% 6.75% 7.00% 7.25% 7.50% 7.75%
-1.5% but
under -1.0% 7.000% 7.00% 7.25% 7.50% 7.75% 8.00%
-2.0% but
under -1.5% 7.250% 7.25% 7.50% 7.75% 8.00% 8.25%
-3.0% but
under -2.0% 7.500% 7.50% 7.75% 8.00% 8.25% 8.50%
-4.0% but
under -3.0% 7.750% 7.75% 8.00% 8.25% 8.50% 8.75%
-6.0% but
under -4.0% 8.250% 8.25% 8.50% 8.75% 9.00% 9.25%
-8.0% but
under -6.0% 8.500% 8.50% 8.75% 9.00% 9.25% 9.50% Less
than -8.0%. 9.000% 9.00% 9.25% 9.50% 9.75% 10.00% (5) As used in this section and elsewhere in this chapter, unless the context clearly
requires otherwise:
(a) “Trust fund balance” means the amount of money in the unemployment insurance fund, less any unpaid advances made to the state under Section
1201 of the Social Security Act. In determining the amount in the fund as of a given date all money received by the Office of Unemployment Insurance on that date shall be considered as being in the fund on that date;
(b) “Total wages” means all remuneration for services, as defined in KRS
341.030(1) to (7), paid by subject employers;
(c) An employer’s “reserve ratio” means the percentage ratio of his or her reserve account balance as of the computation date to his or her taxable payrolls for the twelve (12) consecutive calendar quarters ended as of June 30 immediately preceding the computation date;
(d) For the purposes of this section, an employer’s “reserve account balance” means the amount of contributions credited to his or her reserve account as of the computation date, less the benefit charges through June 30 immediately preceding the computation date. If benefits charged to an account exceed contributions credited to the account, the account shall be considered as having a debit balance and a reserve ratio of “less than zero”; and
(e) “Computation date” is July 31 of each calendar year prior to the effective date of new rates of contributions.
(6) Notwithstanding any other provisions of this chapter, for the calendar years 2021 and 2022, the employer contribution rates shall be determined using the rates listed in Schedule A of Table A.
Effective: July 1, 2023
History: Amended 2023 Ky. Acts ch. 80, sec. 6, effective July 1, 2023. — Amended
2022 Ky. Acts ch. 21, sec. 3, effective January 1, 2023; ch. 29, sec. 2, effective March 24, 2022; and ch. 236, sec. 139, effective July 1, 2022. — Amended 2021 Ky. Acts ch. 177, sec. 3, effective April 1, 2021. — Amended 2019 Ky. Acts ch. 146, sec.
60, effective June 27, 2019. — Amended 2010 (1st Extra. Sess.) Ky. Acts ch. 5, sec.
4, effective August 28, 2010. — Amended 2006 Ky. Acts ch. 211, sec. 144, effective July 12, 2006. — Amended 2000 Ky. Acts ch. 547, sec. 10, effective July 14, 2000. — Amended 1998 Ky. Acts ch. 167, sec. 1, effective July 15, 1998. — Amended 1996
Ky. Acts ch. 266, sec. 7, effective July 15, 1996. — Amended 1984 Ky. Acts ch. 1, sec. 2, effective July 13, 1984. — Amended 1982 Ky. Acts ch. 261, sec. 2, effective January 1, 1982. — Amended 1980 Ky. Acts ch. 67, sec. 1, effective January 1, 1980; ch. 188, sec. 270, effective July 15, 1980; and ch. 385, sec. 4, effective July 15,
1980. — Amended 1978 Ky. Acts ch. 389, sec. 15, effective July 1, 1978. — Amended 1974 Ky. Acts ch. 74, Art. VI, sec. 107(23), (31). — Amended 1972 Ky. Acts ch. 21, sec. 18. — Amended 1962 Ky. Acts ch. 223, sec. 1. — Amended 1958
Ky. Acts ch. 4, sec. 6. — Amended 1952 Ky. Acts ch. 154, sec. 9, effective January
1, 1953. — Amended 1950 Ky. Acts ch. 206, sec. 1. — Amended 1948 Ky. Acts ch.
216, sec. 6. — Amended 1942 Ky. Acts ch. 19, secs. 5 and 14; and ch. 20, secs. 2 and
8. — Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4748g-7.
Legislative Research Commission Note (1/1/2023). 2022 Ky. Acts ch. 21, sec. 26, provides that the Act, which amended this statute, may be cited as the Unemployment Insurance Sustainability Act of 2022.
Legislative Research Commission Note (3/24/2022). 2022 Ky. Acts ch. 29, sec. 5, provides that the amendments made to this statute in that Act are retroactive to January 1, 2022.
Legislative Research Commission Note (4/1/2021). The language in subsection (6) of this statute has been changed in codification from the way it was enacted to delete a reference to calendar year 2022, which was deleted in the Governor’s line-item veto of 2021 HB 413 (2021 Ky. Acts ch. 177, sec. 23).
Legislative Research Commission Note (4/1/2021). Ky. Acts ch. 177, sec. 7, provides that the amendments made to this statute in that Act are retroactive to March 6, 2020.
(2) Except as otherwise provided in this section, no subject employer‘s contribution rate shall be less than two and seven-tenths percent (2.7%), unless he or she has been an employer subject to the provisions of this chapter for twelve (12) consecutive calendar quarters ended as of the computation date. In any calendar year in which the rate schedule prescribed in subsection (3)(a) of this section is in effect, no subject employer who was assigned an entry rate of three percent (3.0%) under the provisions of subsection (1) of this section prior to January 1, 1999, shall have a contribution rate less than two and eight hundred fifty-seven thousandths percent (2.857%), unless subject to this chapter for the minimum time period specified above.
Terms Used In Kentucky Statutes 341.270
- Benefits: means the money payments payable to a worker under this chapter and under any previous unemployment compensation law of this state with respect to his unemployment. See Kentucky Statutes 341.020
- Calendar year: means a year beginning on January 1. See Kentucky Statutes 341.080
- Commission: means the Unemployment Insurance Commission. See Kentucky Statutes 341.005
- Contributions: means the money payments, exclusive of interest and penalties, to the unemployment insurance fund required by this chapter and by any previous unemployment compensation law of this state. See Kentucky Statutes 341.020
- covered employment: shall include service constituting covered employment under any unemployment compensation law of another state. See Kentucky Statutes 341.030
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Fund: means the unemployment insurance fund established by KRS §. See Kentucky Statutes 341.020
- Reserve account: means a separate book account maintained by the cabinet for each subject contributing employer under KRS §. See Kentucky Statutes 341.040
- Secretary: means the secretary of the Education and Labor Cabinet or his or her duly authorized representative. See Kentucky Statutes 341.005
- State: includes , in addition to the states of the United States of America, the
District of Columbia, Puerto Rico, the Dominion of Canada, and Virgin Islands. See Kentucky Statutes 341.020 - Statute: A law passed by a legislature.
- subject employer: means :
(1) Any employing unit which in any calendar quarter in either the current or preceding calendar year paid for service in covered employment wages of fifteen hundred dollars ($1,500) or more. See Kentucky Statutes 341.070 - Veto: The procedure established under the Constitution by which the President/Governor refuses to approve a bill or joint resolution and thus prevents its enactment into law. A regular veto occurs when the President/Governor returns the legislation to the house in which it originated. The President/Governor usually returns a vetoed bill with a message indicating his reasons for rejecting the measure. In Congress, the veto can be overridden only by a two-thirds vote in both the Senate and the House.
- wages: includes tips which are: (a) Received while performing services which constitute employment. See Kentucky Statutes 341.030
- Year: means calendar year. See Kentucky Statutes 446.010
(3) For the calendar year 2001 and each calendar year thereafter, employer contribution rates shall be determined in accordance with “Table A” set out in subsection (4) of this section. For each calendar year, the secretary shall determine the rate schedule to be in effect based upon the “trust fund balance” as of September 30 of the preceding year. If the “trust fund balance”:
(a) Equals or exceeds one and eighteen hundredths percent (1.18%) of the total wages paid in covered employment in the state during the state fiscal year ended as of June 30 of that year, the rates listed in the “Trust Fund Adequacy Rates” schedule of “Table A” shall be in effect;
(b) Equals or exceeds five hundred million dollars ($500,000,000) but is less than the amount required to effectuate the “Trust Fund Adequacy Rates” schedule as provided in paragraph (a) of this subsection, the rates listed in “Schedule A” of “Table A” shall be in effect;
(c) Equals or exceeds three hundred fifty million dollars ($350,000,000) but is less than five hundred million dollars ($500,000,000), the rates listed in “Schedule B” of “Table A” shall be in effect;
(d) Equals or exceeds two hundred fifty million dollars ($250,000,000) but is less than three hundred fifty million dollars ($350,000,000), the rates listed in “Schedule C” of “Table A” shall be in effect;
(e) Equals or exceeds one hundred fifty million dollars ($150,000,000) but is less than two hundred fifty million dollars ($250,000,000), the rates listed in “Schedule D” of “Table A” shall be in effect; and
(f) Is less than one hundred fifty million dollars ($150,000,000), the rates listed in “Schedule E” of “Table A” shall be in effect.
(4) For the calendar year 1982 and each calendar year thereafter, contribution rates shall be determined upon the basis of an individual employer’s reserve ratio as of the computation date and the schedule of rates established under subsection (3) of this section. Except as otherwise provided in this section, the contribution rate for each subject employer for the calendar year immediately following the computation
date shall be the rate in that “Schedule” of “Table A,” as set out below, effective with respect to the calendar year, which appears on the same line as his or her reserve ratio as shown in the “Employer Reserve Ratio” column of the same table.
TABLE A Rate Schedule
Employer Trust A B C D E Reserve Fund
Ratio Adequacy
Rates
8.0% and
over 0.000% 0.30% 0.40% 0.50% 0.60% 1.00%
7.0% but
under 8.0% 0.000% 0.40% 0.50% 0.60% 0.80% 1.05%
6.0% but
under 7.0% 0.008% 0.50% 0.60% 0.70% 0.90% 1.10%
5.0% but
under 6.0% 0.208% 0.70% 0.80% 1.00% 1.20% 1.40%
4.6% but
under 5.0% 0.508% 1.00% 1.20% 1.40% 1.60% 1.80%
4.2% but
under 4.6% 0.808% 1.30% 1.50% 1.80% 2.10% 2.30%
3.9% but
under 4.2% 1.008% 1.50% 1.70% 2.20% 2.40% 2.70%
3.6% but
under 3.9% 1.308% 1.80% 1.80% 2.40% 2.60% 3.00%
3.2% but
under 3.6% 1.508% 2.00% 2.10% 2.50% 2.70% 3.10%
2.7% but
under 3.2% 1.608% 2.10% 2.30% 2.60% 2.80% 3.20%
2.0% but
under 2.7% 1.708% 2.20% 2.50% 2.70% 2.90% 3.30%
1.3% but
under 2.0% 1.808% 2.30% 2.60% 2.80% 3.00% 3.40%
0.0% but
under 1.3% 1.908% 2.40% 2.70% 2.90% 3.10% 3.50%
-0.5% but
under -0.0% 6.500% 6.50% 6.75% 7.00% 7.25% 7.50%
-1.0% but
under -0.5% 6.750% 6.75% 7.00% 7.25% 7.50% 7.75%
-1.5% but
under -1.0% 7.000% 7.00% 7.25% 7.50% 7.75% 8.00%
-2.0% but
under -1.5% 7.250% 7.25% 7.50% 7.75% 8.00% 8.25%
-3.0% but
under -2.0% 7.500% 7.50% 7.75% 8.00% 8.25% 8.50%
-4.0% but
under -3.0% 7.750% 7.75% 8.00% 8.25% 8.50% 8.75%
-6.0% but
under -4.0% 8.250% 8.25% 8.50% 8.75% 9.00% 9.25%
-8.0% but
under -6.0% 8.500% 8.50% 8.75% 9.00% 9.25% 9.50% Less
than -8.0%. 9.000% 9.00% 9.25% 9.50% 9.75% 10.00% (5) As used in this section and elsewhere in this chapter, unless the context clearly
requires otherwise:
(a) “Trust fund balance” means the amount of money in the unemployment insurance fund, less any unpaid advances made to the state under Section
1201 of the Social Security Act. In determining the amount in the fund as of a given date all money received by the Office of Unemployment Insurance on that date shall be considered as being in the fund on that date;
(b) “Total wages” means all remuneration for services, as defined in KRS
341.030(1) to (7), paid by subject employers;
(c) An employer’s “reserve ratio” means the percentage ratio of his or her reserve account balance as of the computation date to his or her taxable payrolls for the twelve (12) consecutive calendar quarters ended as of June 30 immediately preceding the computation date;
(d) For the purposes of this section, an employer’s “reserve account balance” means the amount of contributions credited to his or her reserve account as of the computation date, less the benefit charges through June 30 immediately preceding the computation date. If benefits charged to an account exceed contributions credited to the account, the account shall be considered as having a debit balance and a reserve ratio of “less than zero”; and
(e) “Computation date” is July 31 of each calendar year prior to the effective date of new rates of contributions.
(6) Notwithstanding any other provisions of this chapter, for the calendar years 2021 and 2022, the employer contribution rates shall be determined using the rates listed in Schedule A of Table A.
Effective: July 1, 2023
History: Amended 2023 Ky. Acts ch. 80, sec. 6, effective July 1, 2023. — Amended
2022 Ky. Acts ch. 21, sec. 3, effective January 1, 2023; ch. 29, sec. 2, effective March 24, 2022; and ch. 236, sec. 139, effective July 1, 2022. — Amended 2021 Ky. Acts ch. 177, sec. 3, effective April 1, 2021. — Amended 2019 Ky. Acts ch. 146, sec.
60, effective June 27, 2019. — Amended 2010 (1st Extra. Sess.) Ky. Acts ch. 5, sec.
4, effective August 28, 2010. — Amended 2006 Ky. Acts ch. 211, sec. 144, effective July 12, 2006. — Amended 2000 Ky. Acts ch. 547, sec. 10, effective July 14, 2000. — Amended 1998 Ky. Acts ch. 167, sec. 1, effective July 15, 1998. — Amended 1996
Ky. Acts ch. 266, sec. 7, effective July 15, 1996. — Amended 1984 Ky. Acts ch. 1, sec. 2, effective July 13, 1984. — Amended 1982 Ky. Acts ch. 261, sec. 2, effective January 1, 1982. — Amended 1980 Ky. Acts ch. 67, sec. 1, effective January 1, 1980; ch. 188, sec. 270, effective July 15, 1980; and ch. 385, sec. 4, effective July 15,
1980. — Amended 1978 Ky. Acts ch. 389, sec. 15, effective July 1, 1978. — Amended 1974 Ky. Acts ch. 74, Art. VI, sec. 107(23), (31). — Amended 1972 Ky. Acts ch. 21, sec. 18. — Amended 1962 Ky. Acts ch. 223, sec. 1. — Amended 1958
Ky. Acts ch. 4, sec. 6. — Amended 1952 Ky. Acts ch. 154, sec. 9, effective January
1, 1953. — Amended 1950 Ky. Acts ch. 206, sec. 1. — Amended 1948 Ky. Acts ch.
216, sec. 6. — Amended 1942 Ky. Acts ch. 19, secs. 5 and 14; and ch. 20, secs. 2 and
8. — Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 4748g-7.
Legislative Research Commission Note (1/1/2023). 2022 Ky. Acts ch. 21, sec. 26, provides that the Act, which amended this statute, may be cited as the Unemployment Insurance Sustainability Act of 2022.
Legislative Research Commission Note (3/24/2022). 2022 Ky. Acts ch. 29, sec. 5, provides that the amendments made to this statute in that Act are retroactive to January 1, 2022.
Legislative Research Commission Note (4/1/2021). The language in subsection (6) of this statute has been changed in codification from the way it was enacted to delete a reference to calendar year 2022, which was deleted in the Governor’s line-item veto of 2021 HB 413 (2021 Ky. Acts ch. 177, sec. 23).
Legislative Research Commission Note (4/1/2021). Ky. Acts ch. 177, sec. 7, provides that the amendments made to this statute in that Act are retroactive to March 6, 2020.