{"data":{"id":"us-ky/krs-341.030","jurisdiction":"us-ky","citation":"KRS 341.030","heading":"\"Wages\"  defined -- Impact of trust fund balance on taxable wage","body":"base amount.\n(1) As  used in this chapter, unless the context clearly requires otherwise, and\nexcept as provided in subsections (2) to (7) of this section, \"wages\" means all\nremuneration for services, including commissions, bonuses, and, except for\nservices performed in agriculture and domestic employment, the cash value of\nall remuneration in any medium other than cash. The reasonable cash value of\nremuneration in any  medium  other than cash  shall be  estimated and\ndetermined in accordance with rules prescribed by the commission.\n(2) Amounts  paid to traveling salesmen  or other workers as allowance or\nreimbursement for traveling or other expenses, incurred on the business of the\nemploying unit, constitute wages  only to the extent of the excess of the\namounts over the expenses actually incurred and accounted for by the worker\nto his employer; provided, however, that the cash value of meals and lodging\nwhen  furnished to the worker for the convenience of the employer shall not\nconstitute wages.\n(3) For purposes of this chapter, the term \"wages\" includes tips which are:\n(a) Received while performing services which constitute employment;\n(b) Included in a written statement furnished to the employer pursuant to\nSection 6053(a) of the Internal Revenue Code; and\n(c) Shall be treated as having been paid by the employing unit.\n(4) \"Wages\" does not include the amount of any payment made to, or on behalf of,\na worker under a plan or system established by an employing unit that makes\nprovision for its workers generally or for a class of its workers, including any\namount  paid by an employing unit for insurance or annuities, or into a fund, to\nprovide for any such payment, on account of:\n(a) Retirement;\n(b) Sickness or accident disability but, in the case of payments made  to an\nemployee or any of his dependents, this subsection shall exclude from the\nterm  \"wages\" only payments  which are received under a workers'\ncompensation law;\n(c) Medical and hospitalization expenses in connection with accident or\nsickness disability; or\n(d) Death, if the worker has not:\n1. The option to receive, instead of provision for the death benefit, any\npart of the payment, or if the death benefit is insured, any part of the\npremiums  or contributions to premiums paid by his employing unit;\nand\n2. The  right, under the provisions of the plan or system or policy of\ninsurance providing for the death benefit, to assign the benefit, or to\nreceive a cash consideration in lieu of it either upon his withdrawal\nfrom the plan or system providing for the benefit or upon termination\nof the plan or system or policy of insurance or of his employment\nwith his employing unit.\n(5) \"Wages\"  does not include any payment on account of sickness or accident\ndisability, or medical or hospitalization expenses in connection with sickness or\naccident disability, made by an employer to, or on behalf of, an employee after\nthe expiration of six (6) calendar months following the last calendar month in\nwhich the employee worked for the employer.\n(6) \"Wages\" does not include the amount of any payment made by an employing\nunit without deduction from the remuneration of the worker of the tax imposed\nunder Section 3101 of the Internal Revenue  Code or any payment required\nfrom an employer under a state unemployment compensation law with respect\nto remuneration paid to an employee for domestic service in a private home of\nthe employer or for agricultural labor.\n(7) (a) \"Wages\" does not, for the purposes of KRS  341.260 to 341.310, include\nthat part of remuneration which, after wages  equal to eight thousand\ndollars ($8,000) have been paid in a calendar year to a worker by a\nsubject employer or his predecessor with respect to covered employment\nduring any calendar year, is paid to the worker by the subject employer\nduring the calendar year unless that part of the wages is subject to a tax\nunder a federal law, imposing a tax against which credit may be taken for\ncontributions required to be paid into a state unemployment  fund. On\nJanuary 1, 2012, the amount of eight thousand dollars ($8,000) in this\nsubsection shall increase to nine thousand dollars ($9,000), which shall\nincrease by an additional three hundred dollars ($300) on January 1 of\neach  subsequent year, unless limited by paragraph (b) or (c) of this\nsubsection, not to exceed twelve thousand dollars ($12,000). For the\npurpose of this subsection, the term \"covered employment\" shall include\nservice constituting covered employment  under any  unemployment\ncompensation law of another state.\n(b) If the trust fund balance on September 30 of a calendar year equals or\nexceeds  two hundred million dollars ($200,000,000), the taxable wage\nbase amount in effect at that time shall not increase on January 1 of the\nnext calendar year or on January 1 of subsequent calendar years, except\nas provided in paragraphs (c) and (e) of this subsection.\n(c) If the trust fund balance on September 30 of a calendar year equals or\nexceeds two hundred million dollars ($200,000,000), but is twenty million\ndollars ($20,000,000) or less lower than the trust fund balance amount\nthat would trigger in a lower schedule of contribution rates under KRS\n341.270, the taxable wage base shall increase by three hundred dollars\n($300) on January 1 of the next calendar year and that taxable wage base\namount  shall be the taxable wage base amount in effect for subsequent\ncalendar years, subject to the limitations in paragraph (d) of this\nsubsection.\n(d) The  total number of years that the increase in the taxable wage base\nshall be prohibited or limited under paragraph (b) or (c) of this subsection\nshall not exceed the total number of years that contributing employers\npaid additional federal unemployment taxes because of a reduction in the\ncredit against the federal unemployment tax established in 26 U.S.C. sec.\n3302 beginning in 2011.\n(e) If the taxable wage base on January 1 of the calendar year immediately\nfollowing the last year the increase in the taxable wage  base was\nprohibited or limited under this subsection is less than twelve thousand\ndollars ($12,000), the taxable wage base amount shall be increased by\nthree hundred dollars ($300), and by an additional three hundred dollars\n($300) on January 1 of each subsequent calendar year until the taxable\nwage  base amount reaches twelve thousand dollars ($12,000).\n(f) Notwithstanding paragraphs (b) and (c) of this subsection, if the trust fund\nbalance is less than two hundred million dollars ($200,000,000) on\nSeptember  30 of a calendar year, the suspension of the taxable wage\nbase increase shall not occur.\n(g) Notwithstanding any other provision of this subsection, any increase in\nthe maximum  weekly benefit rate which otherwise would have occurred\nexcept for the suspension of the taxable wage  base increase shall be\nimplemented in accordance with the provisions of this chapter.\n(h) The  provisions of this subsection shall apply unless the United States\nDepartment of Labor notifies the secretary that implementation of this\nsubsection would result in decertification of Kentucky's unemployment\ninsurance program, impact any cap application, affect the receipt of\nemergency  unemployment compensation funds, create an ineligibility for\nreceipt of federal funds, or result in other penalties or sanctions under the\nSocial Security Act or Federal Unemployment  Tax Act, 26 U.S.C. secs.\n3301 et seq.\n(i) Notwithstanding any other provisions of this chapter, for the calendar\nyears  2021  and  2022, the taxable wage  base  increase shall be\nsuspended  and the taxable wage  base in effect for the calendar year\n2020 shall be utilized.","path":["KRS Chapter 341"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52055","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:28Z","sha256":"911a4d967f5e8265ef37448982081bb9be31f2a19e003945fd4ca34b81e5c5cb","source_id":"us-ky","stale":false,"prev":"us-ky/krs-341.020","next":"us-ky/krs-341.040"},"notice":"GroundRules: Original legal text. Not legal advice."}