KRS 341.530: Employer reserve accounts -- Reimbursing employer accounts -- Relief for

improper benefit payments -- Charging of benefits -- Voluntary payments --

Payments of benefits related to state of emergency or disaster declaration.

(1) The Office of Unemployment Insurance shall maintain a reserve account for each

subject employer making contributions to the fund and a reimbursing employer

account for each subject employer making payment in lieu of contributions, and

shall, except as provided in KRS 341.590, credit to such account the total amount of

all contributions or benefit reimbursement paid by the employer on his or her own

behalf. Nothing in this section or elsewhere in this chapter shall be construed to

grant any employer or individual who is o r was in his or her employ prior claims or

rights to the amounts paid by him or her into the fund.

(2) Except as provided in subsection (3) of this section, all regular benefits paid to an

eligible worker in accordance with KRS 341.380 plus the extended be nefits paid in

accordance with KRS 341.700 to 341.740, subject to the provisions of paragraphs

(a) and (b) of this subsection, shall be charged against the reserve account or

reimbursing employer account of his or her 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 such employer in each of ten (10) weeks

whether or not consecutive back to the beginning of the worker's base period.

Shared work benefits paid to an eligible worker in accordance with KRS 341.4161

to 341.4173 shall be charged against the reserve account or reimbursing employer

account of the shared work employer.

(a) Subject employers, which are not governmental entities as defined in KR S

341.069, shall be charged one -half (1/2) of the extended benefits paid in

accordance with KRS 341.700 to 341.740; and

(b) Subject employers which are governmental entities, as defined in KRS

341.069, shall be charged for all extended benefits paid in acc ordance with

KRS 341.700 to 341.740 for compensable weeks occurring on or after

January 1, 1979, and for one -half (1/2) of the extended benefits paid for

compensable weeks occurring prior to such date.

(3) Notwithstanding the provisions of subsection (2) o f this section, benefits paid to an

eligible worker and chargeable to a contributing employer's reserve account under

such subsection shall be charged against the pooled account if such worker was

discharged by such employer for misconduct connected with h is or her most recent

work for such employer, voluntarily left his or her most recent work with such

employer without good cause attributable to the employment, or the employer has

continued to provide part -time employment and wages, without interruption, to the

same extent that was provided from the date of hire, and the employer within a

reasonable time, as prescribed by regulation of the secretary, notifies the office, in

writing, of the alleged voluntary quitting, discharge for misconduct or continuing

part-time employment; provided, however, that no employer making payments to

the fund in lieu of contributions shall be relieved of charges by reason of this

subsection.

(4) Notwithstanding the provisions of subsection (3) of this section, no contributing

employer's reserve account shall be relieved of any charges for benefits relating to

an improper benefit payment to a worker established after October 21, 2013, if:

(a) The improper benefit payment was made because the employer, or an agent of

the employer, was at fault for failing to respond timely or adequately to the

request of the secretary for information relating to a claim for benefits; and

(b) The employer, or an agent of the employer, has a pattern of failing to respond

timely or adequately to requ ests under paragraph (a) of this subsection. For

purposes of this paragraph, a "pattern of failing" means at least six (6) failures

occur in a calendar year or the failure to respond to two percent (2%) of such

requests in a calendar year, whichever is greater.

(5) Any determination under subsection (4) of this section shall be transmitted to the

last known physical or electronic address provided by the employer and may be

appealed in accordance with the provisions of KRS 341.420(2).

(6) Each subject employ er's reserve account or reimbursing account shall, unless

terminated as of the computation date (as defined in subsection (5) of KRS

341.270), be charged with all benefits paid to eligible workers which are chargeable

to such reserve account or reimbursing account under subsection (2) of this section.

A subject employer's reserve account or reimbursing account shall be deemed to be

terminated if he or she has ceased to be subject to this chapter, and his or her

account has been closed and any balance remain ing therein has been transferred to

the fund's pooled account or to a successor's account as provided in KRS 341.540 or

has been refunded if the employer is a reimbursing employer.

(7) Notwithstanding subsection (1) of this section, two (2) or more nonprofit Internal

Revenue Code sec. 501(c)(3) organizations may jointly request the secretary to

establish a group reserve account or reimbursing account for such nonprofit

organizations. Two (2) or more governmental entities may jointly request the

secretary to establish a group reserve account or reimbursing account, and once

established, such account shall remain in effect at least two (2) calendar years and

thereafter until either dissolve d at the discretion of the secretary or upon filing

application for dissolution by the group members. Each member of a group shall be

jointly and severally liable for all payments due under this chapter from each or all

of such group members. The secretary shall prescribe such procedures as he or she

deems necessary for the establishment, maintenance, and dissolution of a group

reserve account or reimbursing account.

(8) Any subject contributing employer may at any time on or before December 31,

2011, make voluntary payments to the fund, additional to the contributions required

under KRS 341.260 and 341.270. Effective January 1, 2012, any subject

contributing employer with a negative reserve account balance may make voluntary

payments to the fund every other calendar year, in addition to the contributions

required under KRS 341.260 and 341.270. Notwithstanding any other provision of

this chapter, contributions paid on or before the computation date and voluntary

payments made within twenty (20) days following the mailing of notices of new

rates shall be credited to an employer's reserve account as of the computation date,

provided no voluntary payments shall be used in computing an employer's rate

unless the payment is made prior to the expiration of one hundr ed and twenty (120)

days after the beginning of the year for which the rate is effective. Voluntary

payments by any employer shall not exceed any negative balance they may have in

their reserve account as of the computation date. Any employer who is delinq uent

in the payment of contributions, penalties, or interest as of the computation date

shall be entitled to make voluntary payments only after the amount of the

delinquency is paid in full.

(9) Notwithstanding any other provisions of this chapter, any ben efits paid to an

eligible worker for reasons related to a state or federal state of emergency or

disaster declaration shall be paid from the pooled account provided in KRS 341.550

and not from the reserve account of the employer of that individual. The res erve

account shall not be charged for benefits related to a state of emergency or disaster

declaration. Payments shall be accounted for separately to allow the secretary to

seek reimbursement from the federal government.