2015 Kentucky Revised Statutes CHAPTER 341 - UNEMPLOYMENT COMPENSATION 341.030 "Wages" defined -- Impact of trust fund balance on taxable wage base amount.
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341.030 "Wages" defined -- Impact of trust fund balance on taxable wage base
amount.
(1)
(2)
(3)
(4)
As used in this chapter, unless the context clearly requires otherwise, and except as
provided in subsections (2) to (7) of this section, "wages" means all remuneration
for services, including commissions, bonuses, and, except for services performed in
agriculture and domestic employment, the cash value of all remuneration in any
medium other than cash. The reasonable cash value of remuneration in any medium
other than cash shall be estimated and determined in accordance with rules
prescribed by the commission.
Amounts paid to traveling salesmen or other workers as allowance or
reimbursement for traveling or other expenses, incurred on the business of the
employing unit, constitute wages only to the extent of the excess of the amounts
over the expenses actually incurred and accounted for by the worker to his
employer; provided, however, that the cash value of meals and lodging when
furnished to the worker for the convenience of the employer shall not constitute
wages.
For purposes of this chapter, the term "wages" includes tips which are:
(a) Received while performing services which constitute employment;
(b) Included in a written statement furnished to the employer pursuant to Section
6053(a) of the Internal Revenue Code; and
(c) Shall be treated as having been paid by the employing unit.
"Wages" does not include the amount of any payment made to, or on behalf of, a
worker under a plan or system established by an employing unit that makes
provision for its workers generally or for a class of its workers, including any
amount paid by an employing unit for insurance or annuities, or into a fund, to
provide for any such payment, on account of:
(a) Retirement;
(b) Sickness or accident disability but, in the case of payments made to an
employee or any of his dependents, this subsection shall exclude from the
term "wages" only payments which are received under a workers'
compensation law;
(c) Medical and hospitalization expenses in connection with accident or sickness
disability; or
(d) Death, if the worker has not:
1.
The option to receive, instead of provision for the death benefit, any part
of the payment, or if the death benefit is insured, any part of the
premiums or contributions to premiums paid by his employing unit; and
2.
The right, under the provisions of the plan or system or policy of
insurance providing for the death benefit, to assign the benefit, or to
receive a cash consideration in lieu of it either upon his withdrawal from
the plan or system providing for the benefit or upon termination of the
plan or system or policy of insurance or of his employment with his
(5)
(6)
(7)
employing unit.
"Wages" does not include any payment on account of sickness or accident
disability, or medical or hospitalization expenses in connection with sickness or
accident disability, made by an employer to, or on behalf of, an employee after the
expiration of six (6) calendar months following the last calendar month in which the
employee worked for the employer.
"Wages" does not include the amount of any payment made by an employing unit
without deduction from the remuneration of the worker of the tax imposed under
Section 3101 of the Internal Revenue Code or any payment required from an
employer under a state unemployment compensation law with respect to
remuneration paid to an employee for domestic service in a private home of the
employer or for agricultural labor.
(a) "Wages" does not, for the purposes of KRS 341.260 to 341.310, include that
part of remuneration which, after wages equal to eight thousand dollars
($8,000) have been paid in a calendar year to a worker by a subject employer
or his predecessor with respect to covered employment during any calendar
year, is paid to the worker by the subject employer during the calendar year
unless that part of the wages is subject to a tax under a federal law, imposing a
tax against which credit may be taken for contributions required to be paid
into a state unemployment fund. On January 1, 2012, the amount of eight
thousand dollars ($8,000) in this subsection shall increase to nine thousand
dollars ($9,000), which shall increase by an additional three hundred dollars
($300) on January 1 of each subsequent year, unless limited by paragraph (b)
or (c) of this subsection, not to exceed twelve thousand dollars ($12,000). For
the purpose of this subsection, the term "covered employment" shall include
service constituting covered employment under any unemployment
compensation law of another state.
(b) If the trust fund balance on September 30 of a calendar year equals or exceeds
two hundred million dollars ($200,000,000), the taxable wage base amount in
effect at that time shall not increase on January 1 of the next calendar year or
on January 1 of subsequent calendar years, except as provided in paragraphs
(c) and (e) of this subsection.
(c) If the trust fund balance on September 30 of a calendar year equals or exceeds
two hundred million dollars ($200,000,000), but is twenty million dollars
($20,000,000) or less lower than the trust fund balance amount that would
trigger in a lower schedule of contribution rates under KRS 341.270, the
taxable wage base shall increase by three hundred dollars ($300) on January 1
of the next calendar year and that taxable wage base amount shall be the
taxable wage base amount in effect for subsequent calendar years, subject to
the limitations in paragraph (d) of this subsection.
(d) The total number of years that the increase in the taxable wage base shall be
prohibited or limited under paragraph (b) or (c) of this subsection shall not
exceed the total number of years that contributing employers paid additional
federal unemployment taxes because of a reduction in the credit against the
(e)
(f)
(g)
(h)
federal unemployment tax established in 26 U.S.C. sec. 3302 beginning in
2011.
If the taxable wage base on January 1 of the calendar year immediately
following the last year the increase in the taxable wage base was prohibited or
limited under this subsection is less than twelve thousand dollars ($12,000),
the taxable wage base amount shall be increased by three hundred dollars
($300), and by an additional three hundred dollars ($300) on January 1 of each
subsequent calendar year until the taxable wage base amount reaches twelve
thousand dollars ($12,000).
Notwithstanding paragraphs (b) and (c) of this subsection, if the trust fund
balance is less than two hundred million dollars ($200,000,000) on September
30 of a calendar year, the suspension of the taxable wage base increase shall
not occur.
Notwithstanding any other provision of this subsection, any increase in the
maximum weekly benefit rate which otherwise would have occurred except
for the suspension of the taxable wage base increase shall be implemented in
accordance with the provisions of this chapter.
The provisions of this subsection shall apply unless the United States
Department of Labor notifies the secretary that implementation of this
subsection would result in decertification of Kentucky's unemployment
insurance program, impact any cap application, affect the receipt of
emergency unemployment compensation funds, create an ineligibility for
receipt of federal funds, or result in other penalties or sanctions under the
Social Security Act or Federal Unemployment Tax Act, 26 U.S.C. secs. 3301
et seq.
Effective: July 12, 2012
History: Amended 2012 Ky. Acts ch. 52, sec. 8, effective July 12, 2012. -- Amended
2010 (1st Extra. Sess.) Ky. Acts ch. 5, sec. 1, effective August 28, 2010. -- Amended
1996 Ky. Acts ch. 266, sec. 1, effective July 15, 1996. -- Amended 1994 Ky. Acts ch.
136, sec. 1, effective July 15, 1994.. -- Amended 1986 Ky. Acts ch. Ky. Acts ch. 26,
sec. 1, effective July 15, 1986. -- Amended 1982 Ky. Acts ch. 67, sec. 3, effective
July 15, 1982; and ch. 261, sec. 1, effective January 1, 1982. -- Amended 1980 Ky.
Acts ch. 188, sec. 265, effective July 15, 1980. -- Amended 1978 Ky. Acts ch. 389,
sec. 3, effective July 1, 1978. -- Amended 1974 Ky. Acts ch. 182, sec. 1. -- Amended
1972 Ky. Acts ch. 21, sec. 1. -- Amended 1964 Ky. Acts ch. 168, sec. 1. -- Amended
1952 Ky. Acts ch. 154, secs. 1, 2, and 3. -- Amended 1950 Ky. Acts ch. 206, sec. 1. - Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky. Stat.
sec. 4748g-3.
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