KRS 341.260: Payment of contributions by employer -- Guarantee and liability of

contractor.

(1) Contributions shall accrue and become payable by each subject employer for

each calendar year in which he is subject to this chapter. Such contributions

shall be based upon wages paid during such calendar year for covered

employment. Such contributions shall become due and be paid at the offices of

the Office of Unemployment Insurance in Frankfort by each subject employer

to the office for the fund in accordance with such regulations as the secretary

prescribes, and shall not be deducted in whole or in part from the wages of

workers in his employ. In the payment of any contributions, a fractional part of

a cent shall be disregarded, unless it amounts to one-half cent ($0.005) or

more, in which case it shall be increased to one cent ($0.01).

(2) Any contractor, who is or becomes a subject employer under the provisions of

this chapter, who contracts with any subcontractor, who also is or becomes a

subject employer under the provisions of this chapter, shall withhold sufficient

moneys on said contract to guarantee that all contributions, penalties, and

interest are paid upon completion of said contract, or shall require of said

subcontractor a good and sufficient bond guaranteeing payment of all

contributions, penalties, and interest due, or to become due with respect to

wages paid for employment on said contract. Failure to comply with the

provisions of this section shall render said contractor directly liable for such

contributions, penalties, and interest due from said subcontractor and the

wages paid by said subcontractor shall be deemed wages paid by the said

contractor with respect to the same periods for all purposes under this chapter,

and liens of the same nature are attachable and enforceable in the same

manner as liens under KRS 341.310 and 341.315. A person, employing unit, or

entity that enters into a verbal or written agreement with another, or between

which there exists an implied contract based upon the circumstances, conduct,

or acts or relations of the parties:

(a) To have work performed consisting of the removal, excavation or drilling

of soil, rock, or mineral, or the cutting or removal of timber from land; or

(b) To have work performed of a kind which is a customary or a recurrent

part of the work of the trade, business, occupation, or profession of such

person or entity, shall for the purposes of this subsection be deemed a

contractor, and such other person or entity a subcontractor. This

subsection shall not apply to the owner or lessee of land principally used

for agriculture.