Kentucky Administrative Regulations › Title 105 - KENTUCKY PUBLIC PENSION AUTHORITY › Chapter 1 - General Rules › Section 105 KAR 1:451 - Quasi-governmental employer reports on independent contractors and leased employees

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO:
				KRS
				61.5991,
				61.510,
				61.543,
				61.552,
				61.645,
				61.675,
				61.685
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				61.645(9)(e) requires the
				Board of Trustees of the Kentucky Retirement Systems to promulgate all
				administrative regulations necessary or proper in order to carry out the
				provisions of KRS
				16.505 to
				16.652 and
				61.510 to
				61.705, and to conform to
				federal statutes and regulations.
				KRS
				61.5991 requires certain employers that
				participate in the Kentucky Employees Retirement System to report information
				to the Kentucky Public Pensions Authority on some persons providing services
				for the participating employer as an independent contractor, a leased employee,
				or via any other similar employment arrangement. This administrative regulation
				establishes quasi-governmental employer reports on independent contractors and
				leased employees.
Section 1.
			 Definitions.
(1) "Complete" means all required
			 sections of a form are filled out, the form has been fully executed by an
			 agency head, appointing authority, or authorized designee (such as the
			 reporting official), and all supporting documentation required by the form is
			 included with the form.
(2) "Core
			 services independent contractor" means a person, either personally or through a
			 company or other legal entity, who provides services for a quasi-governmental
			 employer as an independent contractor, other than as a non-core services
			 independent contractor.
(3) "Core
			 services leased employee" means a person who provides services for a
			 quasi-governmental employer as a leased employee through a staffing company,
			 other than as a non-core services independent contractor.
(4) "Direct employment" means employees
			 reported by the quasi-governmental employer in accordance with
			 KRS
			 61.675 and
			 105 KAR 1:140.
(5) "Employee" is defined by
			 KRS
			 61.510(5).
(6) "File" means a form has been received at
			 the retirement office by mail, fax, secure email, or in-person delivery or via
			 Employer Self Service on the Web site maintained by the agency (if
			 available).
(7) "Fiscal year" is
			 defined by KRS
			 61.510(19).
(8) "KPPA" means the administrative staff of
			 the Kentucky Public Pensions Authority.
(9) "Noncompliant" means the
			 quasi-governmental employer falsifies, fails to provide, or withholds all, or a
			 portion of, the required documentation or information within the time periods
			 prescribed by this administrative regulation.
(10) "Non-core services independent
			 contractor" is defined by
			 KRS
			 61.5991(9).
(11) "Other employment arrangement":
(a) Means any written agreement between a
			 quasi-governmental employer and a third party (including a person, company, or
			 other legal entity) for one (1) or more persons to provide services for the
			 quasi-governmental employer in exchange for the third party receiving monetary
			 compensation, remuneration, or profit; and
(b) Does not mean direct employment, any
			 written agreement for one (1) or more persons to provide services for a
			 quasi-governmental employer as a non-core services independent contractor, or
			 any written agreement for one (1) or more persons to provide services to a
			 quasi-governmental employer if the persons would not be in a regular full-time
			 position if the persons were directly employed by the quasi-governmental
			 employer.
(12) "Prior
			 fiscal year" means the fiscal year beginning July 1 that is immediately prior
			 to the fiscal year in which the KPPA provides the report to the state budget
			 director's office and the Legislative Research Commission required by
			 KRS
			 61.5991(3).
(13) "Quasi-governmental employer":
(a) Means an employer participating in the
			 Kentucky Employees Retirement System that is a local or district health
			 department governed by KRS Chapter 212, state-supported university or community
			 college, mental health/mental retardation board, domestic violence shelter,
			 rape crisis center, child advocacy center, or any other employer that is
			 eligible to voluntarily cease participation in the Kentucky Employees
			 Retirement System as provided by
			 KRS
			 61.522; and
(b) Does not include county attorneys, the
			 Council on State Governments (CSG), the Kentucky Educational Television (KET)
			 Foundation, Association of Commonwealth's Attorneys, the Kentucky High School
			 Athletic Association (KHSAA), the Municipal Power Association of Kentucky, the
			 Kentucky Office of Bar Admissions, the Nursing Home Ombudsman, the Kentucky
			 Association of Regional Programs (KARP), and the Kentucky Association of Sexual
			 Assault Programs.
(14)
			 "Regular full-time position" is defined by
			 KRS
			 61.510(21).)]