KRS § 341.270 — KY Code / Title XXVII / Chapter 341 / Section 341.270
341.270 Determination of employer's contribution rate
Status: in_force

341.270 Determination of employer's contribution rate.

(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.