Kentucky Lowers Employers’ Unemployment Technology Assessment

Kentucky’s service capacity upgrade fund assessment, which is paid by employers subject to unemployment insurance tax, will decrease under a bill effective July 14.

The assessment, which applies to unemployment-taxable wages, will decrease to 0.0115% from 0.075% for calendar year 2027, under SB 129. Starting in 2028, the assessment rate will be subject to annual adjustments but may not exceed 0.025%, under the bill.

The state will suspend the assessment if the service capacity upgrade fund balance reaches at least $15 million or the state unemployment trust fund balance dips below the balance it had as of Dec. 31, ...