2014 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)
(5)
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 employing unit.
"Wages" does not include any payment on account of sickness or accident
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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 federal unemployment tax established in 26 U.S.C. sec.
3302 beginning in 2011.
(e) If the taxable wage base on January 1 of the calendar year immediately
(f)
(g)
(h)
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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