Kentucky House Bill 144 passed on March 25, 2022, changing the 2022 original increased amount for the unemployment taxable wage base. For calendar year 2022, the unemployment taxable wage base increase shall be suspended and the unemployment taxable wage base in effect for the calendar year 2020 shall be utilized at $10,800.
For calendar year 2022, the employer contribution rates shall revert to Schedule A (0.3% to 9.0%) which was also used in the 2020 calendar year. The Service Capacity Upgrade Fund (SCUF) Assessment will remain suspended for 2022.
Paylocity will be updating the system to reflect the updated wage base. If you have already met the higher wage base for some of your employees during the first quarter, Paylocity will be adjusting your account and we will return over-collected amounts through our variance process on date TBD. Your Kentucky Unemployment return and payment will be corrected prior to submission to the agency, and your account will be in balance.
Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.