2014 Kentucky Revised Statutes CHAPTER 341 - UNEMPLOYMENT COMPENSATION 341.614 Surcharge to be paid by subject contributing employers each year funds insufficient in unemployment compensation administration fund -- Percentage rate -- Annual adjustment -- Payment and collection.
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341.614 Surcharge to be paid by subject contributing employers each year
funds insufficient in unemployment compensation administration fund -Percentage rate -- Annual adjustment -- Payment and collection.
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Effective January 1, 2014, there shall be a surcharge upon all subject
contributing employers for any year there are insufficient funds in the
unemployment compensation administration fund for the payment of interest on
advances under Title XII of the Social Security Act or for the repayment of
money, including any interest thereon, received from any source related to the
payment of interest on such advances.
(a) The surcharge shall be twenty-two hundredths of one percent (0.22%) of
the first nine thousand six hundred dollars ($9,600) in wages paid to each
worker by a subject contributing employer or his predecessor with respect
to covered employment during any calendar year.
(b)
Effective January 1, 2015, and each calendar year thereafter, the
secretary shall adjust the surcharge percentage rate based on any
increase to the taxable wage base for that calendar year as provided in
KRS 341.030(7). The purpose of the adjustment shall be to maintain
costs per worker comparable to the original surcharge. Any reduction in
the surcharge percentage rate shall correspond to the increase to the
taxable wage base for that calendar year and shall be rounded up to the
nearest one-hundredth of one percent (0.01%)
(c)
Notwithstanding paragraph (b) of this subsection, the secretary may
reduce the surcharge percentage rate or suspend the surcharge for any
calendar year based on the balance of the unemployment insurance
interest payment fund and the projected amount due for interest on
advances under Title XII of the Social Security Act and for repayment of
money, including any interest thereon, received from any source related
to the payment of interest on such advances.
The surcharge established in this section shall be due and payable at the same
time and in the same manner as employer contributions. Any surcharge
collected shall be deposited in the unemployment insurance interest payment
fund.
Any surcharge unpaid on the date on which it is due and payable, pursuant to
subsection (3) of this section, shall be subject to interest at the rate of one and
one-half percent (1.5%) per month or fraction thereof, not to exceed ninety
percent (90%) of the amount of such surcharge, from and after such date until
payment is received by the cabinet, regardless of whether such delinquency
has been reduced to a judgment or not as provided in subsection (6) of this
section or is the subject of an administrative appeal or court action. The
interest collected shall be deposited in the unemployment insurance interest
payment fund.
A lien of the same nature and having the same force, effect, and priority as
provided in KRS 341.310 shall commence on all property of a subject
contributing employer delinquent in the payment of any surcharge or interest
thereon.
If, after due notice, any subject contributing employer defaults in payment of
any surcharge or interest thereon, the amount due may be collected by a civil
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action instituted in the Franklin Circuit Court or the Franklin District Court
depending on the jurisdictional amount in controversy, including interest and
penalties, in the name of the state, and the subject contributing employer
adjudged in default shall pay the costs of the action. Civil actions brought under
this section shall be heard by the court, without the intervention of a jury, at the
earliest possible date and shall be entitled to preference on the calendar of the
court over all other civil actions, except petitions for judicial review under this
chapter and cases arising under the Kentucky workers' compensation law.
At or after the commencement of an action under subsection (6) of this section,
attachment may be had against the property of the liable subject contributing
employer for such surcharge and interest without execution of a bond, or, after
judgment has been entered, an execution may be issued against the property
of such employer without the execution of a bond.
An action for the recovery of a surcharge or interest thereon under this section
shall be barred, and any lien therefor shall be canceled and extinguished,
unless collected or suit for collection has been filed within ten (10) years from
the due date of such surcharge.
Notwithstanding subsection (6) of this section, any delinquent surcharge or
interest thereon may be collected in accordance with the levy and distraint
provisions of this chapter.
Effective:April 11, 2012
History: Created 2012 Ky. Acts ch. 52, sec. 7, effective April 11, 2012.
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