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341.275 Financing benefits for nonprofit organizations.
(1)
(2)
For the purpose of this section, a nonprofit organization is an organization (or group
of organizations) described in Section 501(c)(3) of the United States Internal
Revenue Code which is exempt from income tax under Section 501(a) of such code.
For the purpose of this section, "cabinet" shall mean the Education and Workforce
Development Cabinet and "secretary" shall mean the secretary of the Education and
Workforce Development Cabinet.
Any nonprofit organization which, pursuant to KRS 341.070(4), is, or becomes, a
subject employer shall pay contributions under the provisions of KRS 341.270,
unless it elects, in accordance with this section, to pay to the cabinet for the fund an
amount equal to the amount of regular benefits and of one-half (1/2) of the extended
benefits paid to workers for weeks of unemployment that is attributable to service in
the employ of the nonprofit organization, performed during the effective period of
the election but only if the employer is the worker's most recent employer. No
employer shall be deemed to be the most recent employer unless the eligible worker
to whom benefits are payable shall have worked for that employer in each of ten
(10) weeks whether or not consecutive.
(a) Any nonprofit organization which is, or becomes, a subject employer on July
1, 1972, may elect to become liable for payments in lieu of contributions for a
period of not less than the remainder of 1972 and the calendar year of 1973,
provided it files with the cabinet a written notice of its election within the
thirty (30) day period immediately following such date.
(b) Any nonprofit organization which becomes a subject employer after July 1,
1972, may elect to become liable for payments in lieu of contributions for a
period of not less than the period of subjectivity during the year in which such
subjectivity begins and the following calendar year by filing a written notice
of its election with the cabinet not later than thirty (30) days immediately
following the date of the determination of such subjectivity.
(c) Any nonprofit organization which makes an election in accordance with
paragraph (a) or (b) of this subsection will continue to be liable for payments
in lieu of contributions until it files with the secretary a written notice
terminating its election not later than thirty (30) days prior to the beginning of
the calendar year for which such termination shall first be effective, except
that liability for payments in lieu of contributions shall continue thereafter
with respect to wages paid prior to the effective date of such termination.
(d) Any nonprofit organization which has been paying contributions under this
chapter for a period subsequent to July 1, 1972, may change to a reimbursable
basis by filing with the cabinet not later than thirty (30) days prior to the
beginning of any calendar year a written notice of election to become liable
for payments in lieu of contributions. Such election shall not be terminable by
such organization for that and the following year.
(e) The secretary may for good cause extend the period within which a notice of
election, or a notice of termination, must be filed and may permit an election
to be retroactive but not any earlier than with respect to benefits paid after
(3)
(4)
December 31, 1969.
(f) The secretary shall notify each nonprofit organization of any determination
which may be made of its status as an employer and of the effective date of
any election which it makes and of any termination of such election. Such
determinations shall be subject to appeal and review in accordance with the
provisions of KRS 341.430(2).
Payments in lieu of contributions shall be made in accordance with the provisions
of this subsection.
(a) At the end of each calendar quarter or at the end of any other period as
determined by the secretary, the cabinet shall bill each nonprofit organization
(or group of such organizations) which has elected to make payments in lieu
of contributions for an amount equal to the full amount of regular benefits
plus one-half (1/2) of the amount of extended benefits paid during such
quarter plus any prior period adjustments, which are attributable to service
performed in covered employment in the employ of such organization plus
interest on the total amount billed at the average rate of earnings in the
unemployment insurance fund for the prior calendar year. All interest
collected under this subsection shall be credited to the unemployment
insurance fund.
(b) Payment of any bill rendered under paragraph (a) shall be made not later than
thirty (30) days after such bill was mailed to the last known address of the
nonprofit organization or was otherwise delivered to it, unless there has been
an application for review in accordance with paragraph (d) of this subsection.
(c) Payments made by any nonprofit organization under the provisions of this
subsection shall not be deducted or deductible, in whole or in part, from the
remuneration of workers in the employ of the organization.
(d) The amount due specified in any bill from the secretary shall be conclusive on
the organization unless, not later than fifteen (15) days after the bill was
mailed to its last known address or otherwise delivered to it, the organization
files an appeal to the commission setting forth the grounds for such appeal.
Proceedings on appeal to the commission from the amount of a bill rendered
under this subsection shall be in accordance with the provisions of KRS
341.430, and the decision of the commission shall be subject to review under
the provisions of KRS 341.460(1).
(e) Past-due payments of amounts in lieu of contributions shall be subject to the
same interest, penalties, collection service, and lien provisions that, pursuant
to KRS 341.300 to 341.310, apply to past-due contributions.
(a) The secretary may, in accordance with regulations prescribed by the cabinet,
require any nonprofit organization that elects to become liable for payments in
lieu of contributions to deposit with the cabinet, within thirty (30) days after
the effective date of its election as a condition thereof, money equal to two
percent (2%) of the organization's total wages paid for employment as defined
in KRS 341.050(1)(e) for the four (4) calendar quarters immediately preceding
the effective date of such election. If the nonprofit organization did not pay
(5)
(6)
wages in each of such four (4) calendar quarters, the amount of the deposit
shall be as determined by the secretary.
(b) Money deposited in accordance with this subsection shall be retained by the
cabinet in an escrow account until all possible liability to the fund under the
election is terminated, at which time it shall be returned to the organization,
less any deductions as hereinafter provided. The cabinet may deduct from the
money deposited under this subsection by a nonprofit organization to the
extent necessary to satisfy any due and unpaid payments in lieu of
contributions and any applicable interest and penalties provided for in
subsection (3)(e) of this section. The secretary shall require the organization
within thirty (30) days following any deduction from a money deposit under
the provisions of this subsection to deposit sufficient additional money to
make whole the organization's deposit at the prior level. The secretary may, at
any time, review the adequacy of the deposit made by any organization. If, as
a result of such review, he determines that an adjustment is necessary, he shall
require the organization to make additional deposit within thirty (30) days of
written notice of his determination or shall return to it such portion of the
deposit as he no longer considers necessary, whichever action is appropriate.
(c) If any nonprofit organization fails to make a deposit, or to increase or make
whole the amount of a previously made deposit, as provided under this
subsection, the secretary may terminate such organization's election to make
payments in lieu of contributions and such termination shall continue for not
less than the remainder of that calendar year and the following calendar year
beginning with the quarter in which such termination becomes effective;
provided, that the secretary may extend for good cause the applicable filing,
deposit, or adjustment period by not more than sixty (60) days.
If any nonprofit organization is delinquent in making payments in lieu of
contributions as required under subsection (3) of this section, the secretary may
terminate such organization's election to make payments in lieu of contributions as
of the beginning of the next calendar year, and such termination shall be effective
for that and the next calendar year.
Notwithstanding any other section of this chapter, no employing unit electing to
make payments in lieu of contributions under the provisions of this section shall be
entitled to relief of benefit charges.
Effective: August 28, 2010
History: Amended 2010 (1st Extra. Sess.) Ky. Acts ch. 5, sec. 6, effective August 28,
2010. -- Amended 2009 Ky. Acts ch. 11, sec. 77, effective June 25, 2009. -Amended 2006 Ky. Acts ch. 211, sec. 145, effective July 12, 2006. -- Amended 1996
Ky. Acts ch. 266, sec. 8, effective July 15, 1996; and ch. 271, sec. 19, effective July
15, 1996. --Amended 1978 Ky. Acts ch. 389, sec. 16, effective July 1, 1978. -Amended 1974 Ky. Acts ch. 74, Art. VI, secs. 101 and 107(21), (23). --Created 1972
Ky. Acts ch. 21, sec. 19.
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