336.248 Reports and contributions to unemployment insurance fund -- Options for
877 words·~4 min read·
/ky/336-248A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
submitting -- Changing choice of contribution method -- Clients contributing
under KRS 341.275 -- Client treated as new employer. For the purposes of KRS Chapter 341:
(1)The professional employer organization shall submit all required wage reports and
pay all required contributions to the Office of Unemployment Insurance under KRS
Chapter 341 using one
(1)of the following:
(a)The professional employer organization shall file quarterly unemployment
wage and tax reports to report the wages of all covered employees and pay all
contributions, penalties, and interest on wages paid by the professional
employer organization to its covered employees during the term of the
applicable professional employer agreement under the reserve account of the
professional employer organization; or
(b)The professional employer organization shall file quarterly unemployment
wage and tax reports to report the wages of all covered employees and shall
pay all contributions, penalties, and interest on wages paid by the professional
employer organization to its covered employees during the term of the
applicable professional employer agreement under the reserve or reimbursing
account of the client. If the professional employer chooses this option:
1. The professional employer organization shall notify the Office of
Unemployment Insurance in writing;
2. The professional employer organization shall assist the Office of
Unemployment Insurance in the process of the separation and
identification of the contribution history, benefit experience history, and
payroll of each of its clients, and the Office of Unemployment Insurance
shall transfer the benefit experience history to the client account;
3. The Office of Unemployment Insurance shall determine the contribution
rate of each client account separately based upon the client's
contribution history, benefit experience history, and actual payroll. If:
a. There is not sufficient benefit experience history in the client
account to establish a tax rate, the account will be assigned a tax
rate pursuant to KRS 341.270(1); or
b. The client has benefit experience history from a previous account,
that benefit experience history shall be used in calculating an
earned tax rate pursuant to the provisions of KRS 341.270(4). The
benefit experience history shall be transferred to the account
assigned to that client as co-employer of the professional employer
organization. If taxable wages were reported by the client in a
previous account within the calendar year that the professional
employer organization and the client enter into a professional
employer agreement, the professional employer organization shall
be given credit for the taxable wages reported by the client on each
employee in the previous account; and
4. The professional employer organization shall produce all documentation
and information necessary for the Office of Unemployment Insurance to
create the client account within sixty
(60)days of filing a notice under
this paragraph. If the information needed by the Office of
Unemployment Insurance is not produced within the sixty
(60)day
period, the professional employer organization shall revert to reporting
under subsection (1)(a) of this section;
(2)Beginning on January 6, 2023, and continuing through December 31, 2024, the
professional employer organization shall submit all required wage reports and pay
all required contributions to the Office of Unemployment Insurance using the state
employer identification number and contribution rate of the client. After January 1,
2025, the professional employer organization shall report and pay all required
contributions to the unemployment insurance fund in accordance with the
provisions of subsection
(1)of this section;
(3)Any professional employer organization with an existing employer reserve account
with the Office of Unemployment Insurance as of June 29, 2023, shall comply with
the provisions of this section no later than January 1, 2025;
(4)Any professional employer organization that does not have a current employer
reserve account with the Office of Unemployment Insurance as of June 29, 2023,
shall be liable for contributions under KRS Chapter 341 pursuant to this section;
(5)After choosing one
(1)of the elections provided for under subsection
(1)of this
section, a professional employer organization shall be permitted to change its
contribution election only once. The change of contribution election shall be made
by the professional employer organization in writing. The change of contribution
election shall become effective in the calendar year following the date the Office of
Unemployment Insurance approves the professional employer organization's
change of contribution option. If the Office of Unemployment Insurance approves a
change of contribution election, all contribution history, benefit experience history,
and payroll of each client shall be transferred to the:
(a)Professional employer organization account, if the election of subsection
(1)(a) of this section is chosen; or
(b)Individual client accounts, if the election in subsection (1)(b) of this section is
chosen;
(6)Notwithstanding subsection
(1)of this section, any client of a professional
employer organization that is eligible for and has made an election to use the
contribution method under KRS 341.275 shall continue using this method,
regardless of whether the professional employer organization elected the option in
subsection (1)(a) of this section; and
(7)Upon the termination of a contract between a professional employer organization
and a client or the failure of a professional employer organization to submit reports
or make tax payments as required by KRS 336.230 to 336.250, the client shall be
treated as a new employer without a previous experience record unless that client is
otherwise eligible for an experience rating.