{"data":{"id":"us-ky/krs-341.275","jurisdiction":"us-ky","citation":"KRS 341.275","heading":"Financing benefits for nonprofit organizations.","body":"(1) For the purpose of this section, a nonprofit organization is an organization (or\ngroup of organizations) described in Section 501(c)(3) of the United States\nInternal Revenue Code which is exempt from income tax under Section 501(a)\nof such code. For the purpose of this section, \"cabinet\" shall mean  the\nEducation and Labor Cabinet and \"secretary\" shall mean  the secretary of the\nEducation and Labor Cabinet.\n(2) Any nonprofit organization which, pursuant to KRS  341.070(4), is, or becomes,\na  subject employer shall pay contributions under the provisions of KRS\n341.270, unless it elects, in accordance with this section, to pay to the cabinet\nfor the fund an amount equal to the amount of regular benefits and of one-half\n(1/2) of the extended benefits paid to workers for weeks of unemployment that\nis attributable to service in the employ of the nonprofit organization, performed\nduring the effective period of the election but only if the employer is the\nworker's most recent employer. No employer shall be deemed  to be the most\nrecent employer unless the eligible worker to whom  benefits are payable shall\nhave  worked for that employer in each of ten (10) weeks  whether or not\nconsecutive.\n(a) Any  nonprofit organization which is, or becomes, a subject employer on\nJuly 1, 1972, may  elect to become  liable for payments  in lieu of\ncontributions for a period of not less than the remainder of 1972 and the\ncalendar year of 1973, provided it files with the cabinet a written notice of\nits election within the thirty (30) day period immediately following such\ndate.\n(b) Any nonprofit organization which becomes  a subject employer after July\n1, 1972, may elect to become  liable for payments in lieu of contributions\nfor a period of not less than the period of subjectivity during the year in\nwhich such subjectivity begins and the following calendar year by filing a\nwritten notice of its election with the cabinet not later than thirty (30) days\nimmediately following the date of the determination of such subjectivity.\n(c) Any  nonprofit organization which makes an election in accordance with\nparagraph (a) or (b) of this subsection will continue to be liable for\npayments  in lieu of contributions until it files with the secretary a written\nnotice terminating its election not later than thirty (30) days prior to the\nbeginning of the calendar year for which such termination shall first be\neffective, except that liability for payments in lieu of contributions shall\ncontinue thereafter with respect to wages paid prior to the effective date\nof such termination.\n(d) Any  nonprofit organization which has been paying contributions under\nthis chapter for a period subsequent to July 1, 1972, may change to a\nreimbursable basis by filing with the cabinet not later than thirty (30) days\nprior to the beginning of any calendar year a written notice of election to\nbecome  liable for payments in lieu of contributions. Such election shall not\nbe terminable by such organization for that and the following year.\n(e) The secretary may for good cause extend the period within which a notice\nof election, or a notice of termination, must be filed and may permit an\nelection to be retroactive but not any earlier than with respect to benefits\npaid after December 31, 1969.\n(f) The  secretary shall notify each  nonprofit organization of  any\ndetermination which may be made of its status as an employer and of the\neffective date of any election which it makes  and of any termination of\nsuch election. Such determinations shall be subject to appeal and review\nin accordance with the provisions of KRS 341.430(2).\n(3) Payments  in lieu of contributions shall be made  in accordance with the\nprovisions of this subsection.\n(a) At the end of each calendar quarter or at the end of any other period as\ndetermined  by  the secretary, the cabinet shall bill each  nonprofit\norganization (or group of such organizations) which has elected to make\npayments in lieu of contributions for an amount equal to the full amount of\nregular benefits plus one-half (1/2) of the amount of extended benefits\npaid during such quarter plus any prior period adjustments, which are\nattributable to service performed in covered employment in the employ of\nsuch organization plus interest on the total amount billed at the average\nrate of earnings in the unemployment  insurance fund for the prior\ncalendar year. All interest collected under this subsection shall be\ncredited to the unemployment insurance fund.\n(b) Payment  of any bill rendered under paragraph (a) shall be made not later\nthan thirty (30) days after such bill was mailed to the last known address\nof the nonprofit organization or was otherwise delivered to it, unless there\nhas been an application for review in accordance with paragraph (d) of\nthis subsection.\n(c) Payments  made by any nonprofit organization under the provisions of this\nsubsection shall not be deducted or deductible, in whole or in part, from\nthe remuneration of workers in the employ of the organization.\n(d) The  amount  due  specified in any bill from the secretary shall be\nconclusive on the organization unless, not later than fifteen (15) days after\nthe bill was mailed to its last known address or otherwise delivered to it,\nthe organization files an appeal to the commission setting forth the\ngrounds for such appeal. Proceedings on appeal to the commission from\nthe amount of a bill rendered under this subsection shall be in accordance\nwith the provisions of KRS  341.430, and the decision of the commission\nshall be subject to review under the provisions of KRS 341.460(1).\n(e) Past-due payments of amounts in lieu of contributions shall be subject to\nthe same  interest, penalties, collection service, and lien provisions that,\npursuant to KRS 341.300 to 341.310, apply to past-due contributions.\n(4) (a) The  secretary may, in accordance with regulations prescribed by the\ncabinet, require any nonprofit organization that elects to become liable for\npayments  in lieu of contributions to deposit with the cabinet, within thirty\n(30) days after the effective date of its election as a condition thereof,\nmoney  equal to two percent (2%) of the organization's total wages paid\nfor employment as defined in KRS  341.050(1)(e) for the four (4) calendar\nquarters immediately preceding the effective date of such election. If the\nnonprofit organization did not pay wages in each of such four (4) calendar\nquarters, the amount  of the deposit shall be as determined by the\nsecretary.\n(b) Money  deposited in accordance with this subsection shall be retained by\nthe cabinet in an escrow account until all possible liability to the fund\nunder the election is terminated, at which time it shall be returned to the\norganization, less any deductions as hereinafter provided. The cabinet\nmay  deduct from the money  deposited under this subsection by a\nnonprofit organization to the extent necessary to satisfy any due and\nunpaid payments in lieu of contributions and any applicable interest and\npenalties provided for in subsection (3)(e) of this section. The secretary\nshall require the organization within thirty (30) days following any\ndeduction from a money deposit under the provisions of this subsection to\ndeposit sufficient additional money  to make  whole the organization's\ndeposit at the prior level. The secretary may, at any time, review the\nadequacy of the deposit made by any organization. If, as a result of such\nreview, he determines that an adjustment is necessary, he shall require\nthe organization to make  additional deposit within thirty (30) days of\nwritten notice of his determination or shall return to it such portion of the\ndeposit as he  no  longer considers necessary, whichever action is\nappropriate.\n(c) If any nonprofit organization fails to make  a deposit, or to increase or\nmake  whole the amount of a previously made deposit, as provided under\nthis subsection, the secretary may terminate such organization's election\nto make  payments in lieu of contributions and such termination shall\ncontinue for not less than the remainder of that calendar year and the\nfollowing calendar year beginning with the quarter in which such\ntermination becomes  effective; provided, that the secretary may extend\nfor good cause the applicable filing, deposit, or adjustment period by not\nmore than sixty (60) days.\n(5) If any nonprofit organization is delinquent in making payments in lieu of\ncontributions as required under subsection (3) of this section, the secretary\nmay  terminate such organization's election to make  payments  in lieu of\ncontributions as of the beginning of the next calendar year, and  such\ntermination shall be effective for that and the next calendar year.\n(6) Notwithstanding any other section of this chapter, no employing unit electing to\nmake  payments in lieu of contributions under the provisions of this section shall\nbe entitled to relief of benefit charges.","path":["KRS Chapter 341"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52449","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:29Z","sha256":"3a9bac832f6ac7973e8e7e1c63826f10ced8b27c10920bb4ce92f96e11c73131","source_id":"us-ky","stale":false,"prev":"us-ky/krs-341.272","next":"us-ky/krs-341.277"},"notice":"GroundRules: Original legal text. Not legal advice."}