{"data":{"id":"us-ky/krs-336.248","jurisdiction":"us-ky","citation":"KRS 336.248","heading":"Reports and contributions to unemployment insurance fund -- Options for","body":"submitting -- Changing choice of contribution method -- Clients contributing\nunder KRS 341.275 -- Client treated as new employer.\nFor the purposes of KRS Chapter 341:\n(1) The professional employer organization shall submit all required wage reports and\npay all required contributions to the Office of Unemployment Insurance under KRS\nChapter 341 using one (1) of the following:\n(a) The professional employer organization shall  file quarterly unemployment\nwage and tax reports to report the wages of all covered employees and pay all\ncontributions, penalties, and interest on wages paid by the professional\nemployer organization to its covered employees during the term of the\napplicable professional employer agreement under the reserve account of the\nprofessional employer organization; or\n(b) The professional employer organization shall file quarterly unemployment\nwage and tax reports to report the wages of all covered employees and shall\npay all contributions, penalties, and interest on wages paid by the professional\nemployer organization to its covered employees during the term of the\napplicable professional employer agreement under the reserve or reimbursing\naccount of the client. If the professional employer chooses this option:\n1. The professional employer organization shall notify the Office of\nUnemployment Insurance in writing;\n2. The professional employer organization shall assist the Office of\nUnemployment Insurance in the pro cess of the separation and\nidentification of the contribution history, benefit experience history, and\npayroll of each of its clients, and the Office of Unemployment Insurance\nshall transfer the benefit experience history to the client account;\n3. The Office of Unemployment Insurance shall determine the contribution\nrate of each client account separately based upon the client's\ncontribution history, benefit experience history, and actual payroll. If:\na. There is not sufficient benefit experience history in the client\naccount to establish a tax rate, the account will be assigned a tax\nrate pursuant to KRS 341.270(1); or\nb. The client has benefit experience history from a previous account,\nthat benefit experience history shall be used in calculating an\nearned tax rate pursuant to the provisions of KRS 341.270(4). The\nbenefit experience history shall be transferred to the acco unt\nassigned to that client as co-employer of the professional employer\norganization. If taxable wages were reported by the client in a\nprevious account within the calendar year that the professional\nemployer organization and the client enter into a profes sional\nemployer agreement, the professional employer organization shall\nbe given credit for the taxable wages reported by the client on each\nemployee in the previous account; and\n4. The professional employer organization shall produce all documentation\nand information necessary for the Office of Unemployment Insurance to\ncreate the client account within sixty (60) days of filing a notice under\nthis paragraph. If the information needed by the Office of\nUnemployment Insurance is not produced within the sixty (60) day\nperiod, the professional employer organization shall revert to reporting\nunder subsection (1)(a) of this section;\n(2) Beginning on January 6, 2023, and continuing through December 31, 2024, the\nprofessional employer organization shall submit all r equired wage reports and pay\nall required contributions to the Office of Unemployment Insurance using the state\nemployer identification number and contribution rate of the client. After January 1,\n2025, the professional employer organization shall report a nd pay all required\ncontributions to the unemployment insurance fund in accordance with the\nprovisions of subsection (1) of this section;\n(3) Any professional employer organization with an existing employer reserve account\nwith the Office of Unemployment Insurance as of June 29, 2023, shall comply with\nthe provisions of this section no later than January 1, 2025;\n(4) Any professional employer organization that does not have a current employer\nreserve account with the Office of Unemployment Insurance as of J une 29, 2023,\nshall be liable for contributions under KRS Chapter 341 pursuant to this section;\n(5) After choosing one (1) of the elections provided for under subsection (1) of this\nsection, a professional employer organization shall be permitted to change  its\ncontribution election only once. The change of contribution election shall be made\nby the professional employer organization in writing. The change of contribution\nelection shall become effective in the calendar year following the date the Office of\nUnemployment Insurance approves the professional employer organization's\nchange of contribution option. If the Office of Unemployment Insurance approves a\nchange of contribution election, all contribution history, benefit experience history,\nand payroll of each client shall be transferred to the:\n(a) Professional employer organization account, if the election of subsection\n(1)(a) of this section is chosen; or\n(b) Individual client accounts, if the election in subsection (1)(b) of this section is\nchosen;\n(6) Notwithstanding subsection (1) of this section, any client of a professional\nemployer organization that is eligible for and has made an election to use the\ncontribution method under KRS 341.275 shall continue using this method,\nregardless of whether the pr ofessional employer organization elected the option in\nsubsection (1)(a) of this section; and\n(7) Upon the termination of a contract between a professional employer organization\nand a client or the failure of a professional employer organization to submit reports\nor make tax payments as required by KRS 336.230 to 336.250, the client shall be\ntreated as a new employer without a previous experience record unless that client is\notherwise eligible for an experience rating.","path":["KRS Chapter 336"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53909","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:25Z","sha256":"34c98492b68b4cbbd2b02f7d736cb7b9cafe247404830c37548fe82f18ba859d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-336.246","next":"us-ky/krs-336.250"},"notice":"GroundRules: Original legal text. Not legal advice."}