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KY- 2022 Unemployment Taxable Wage Base and Contribution Rates revert to 2020 amounts

March 28, 2022

Alert

At a Glance

  • Kentucky unemployment taxable wage base for 2022 will be $10,800, reverting back to the 2020 wage base.
  • Kentucky Rate Schedule will use Schedule A, reverting to the 2020 Schedule.

Introduction

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.

Next Steps

  • According to the Kentucky unemployment department the new contribution rates will
    be updated in the system.
  • Paylocity is working with the agency to get updated rates.
  • Kentucky will also send notices to all employers notifying of the wage base and
    contribution rate changes.
  • Paylocity is waiting for confirmation from the state as to when the above will be done.

 

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.