{"data":{"id":"us-ky/krs-341.614","jurisdiction":"us-ky","citation":"KRS 341.614","heading":"Surcharge to be paid by subject contributing employers each year","body":"funds insufficient in unemployment  compensation  administration fund --\nPercentage rate -- Annual adjustment -- Payment  and collection.\n(1) Effective January 1, 2014, there shall be a surcharge upon  all subject\ncontributing employers for any  year there are insufficient funds in the\nunemployment  compensation administration fund for the payment of interest on\nadvances  under Title XII of the Social Security Act or for the repayment of\nmoney, including any interest thereon, received from any source related to the\npayment of interest on such advances.\n(2) (a) The surcharge shall be twenty-two hundredths of one percent (0.22%) of\nthe first nine thousand six hundred dollars ($9,600) in wages paid to each\nworker by a subject contributing employer or his predecessor with respect\nto covered employment during any calendar year.\n(b) Effective January 1, 2015, and each calendar year thereafter, the\nsecretary shall adjust the surcharge percentage rate based on any\nincrease to the taxable wage base for that calendar year as provided in\nKRS  341.030(7). The purpose of the adjustment shall be to maintain\ncosts per worker comparable to the original surcharge. Any reduction in\nthe surcharge percentage rate shall correspond to the increase to the\ntaxable wage base for that calendar year and shall be rounded up to the\nnearest one-hundredth of one percent (0.01%).\n(c) Notwithstanding paragraph (b) of this subsection, the secretary may\nreduce the surcharge percentage rate or suspend the surcharge for any\ncalendar year based on the balance of the unemployment  insurance\ninterest payment  fund and the projected amount  due for interest on\nadvances under Title XII of the Social Security Act and for repayment of\nmoney,  including any interest thereon, received from any source related\nto the payment of interest on such advances.\n(3) The surcharge established in this section shall be due and payable at the same\ntime and in the same  manner  as employer contributions. Any  surcharge\ncollected shall be deposited in the unemployment insurance interest payment\nfund.\n(4) Any surcharge unpaid on the date on which it is due and payable, pursuant to\nsubsection (3) of this section, shall be subject to interest at the rate of one and\none-half percent (1.5%) per month or fraction thereof, not to exceed ninety\npercent (90%) of the amount of such surcharge, from and after such date until\npayment  is received by the cabinet, regardless of whether such delinquency\nhas been reduced to a judgment or not as provided in subsection (6) of this\nsection or is the subject of an administrative appeal or court action. The\ninterest collected shall be deposited in the unemployment insurance interest\npayment fund.\n(5) A  lien of the same  nature and having the same  force, effect, and priority as\nprovided in KRS  341.310 shall commence  on all property of a subject\ncontributing employer delinquent in the payment of any surcharge or interest\nthereon.\n(6) If, after due notice, any subject contributing employer defaults in payment of\nany surcharge or interest thereon, the amount due may be collected by a civil\naction instituted in the Franklin Circuit Court or the Franklin District Court\ndepending on the jurisdictional amount in controversy, including interest and\npenalties, in the name  of the state, and the subject contributing employer\nadjudged in default shall pay the costs of the action. Civil actions brought under\nthis section shall be heard by the court, without the intervention of a jury, at the\nearliest possible date and shall be entitled to preference on the calendar of the\ncourt over all other civil actions, except petitions for judicial review under this\nchapter and cases arising under the Kentucky workers' compensation law.\n(7) At or after the commencement  of an action under subsection (6) of this section,\nattachment may be had against the property of the liable subject contributing\nemployer for such surcharge and interest without execution of a bond, or, after\njudgment has been entered, an execution may be issued against the property\nof such employer without the execution of a bond.\n(8) An action for the recovery of a surcharge or interest thereon under this section\nshall be barred, and any lien therefor shall be canceled and extinguished,\nunless collected or suit for collection has been filed within ten (10) years from\nthe due date of such surcharge.\n(9) Notwithstanding subsection (6) of this section, any delinquent surcharge or\ninterest thereon may  be collected in accordance with the levy and distraint\nprovisions of this chapter.\n(10) Any delinquent surcharge or interest collected after July 31, 2017, shall not be\nsubject to the credit provisions contained in KRS  341.612 and shall be\ndeposited into the penalty and interest account.\n(11) Notwithstanding any other provisions of this chapter, for the calendar years\n2021 and 2022, there shall be no surcharge assessment.","path":["KRS Chapter 341"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52057","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:29Z","sha256":"41b416e6f4622450ee956dfb10611f6135a855306a7768ff392c671b88ab7f1d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-341.613","next":"us-ky/krs-341.620"},"notice":"GroundRules: Original legal text. Not legal advice."}