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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
(3)
(4)
paid after 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 wages in each of such four (4) calendar
quarters, the amount of the deposit shall be as determined by the
(5)
(6)
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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