How Do I Know If I Am Liable For State Unemployment Taxes?
The requirements for liability vary for different types of employment:
- FORPROFIT BUSINESS (other than agriculture) You will be liable if you pay at least $1,500 in gross wages in a single calendar quarter or if you have at least one worker performing service in each of 20 weeks out of a calendar year. (They do not have to be the same worker in each week, nor do the weeks have to be consecutive.)
- AGRICULTURAL EMPLOYERS You will be liable if you pay at least $20,000 in gross wages in a single calendar quarter or if you have at least ten workers performing service in each of 20 weeks out of a calendar year.
- DOMESTIC EMPLOYERS You will be liable if you pay at least $1,000 in gross wages in a single calendar quarter.
- ACQUISITION OF ALL OR PART OF AN EXISTING BUSINESS (which is already liable for Unemployment Insurance). Generally, you will be automatically liable as a successor employer.
- NOTFORPROFIT ORGANIZATION You will be liable if you employ at least four workers in each of 20 weeks out of a calendar year.
- STATE OR LOCAL GOVERNMENT EMPLOYER You are liable for any employment excluding elected officials and certain other exclusions.
- FEDERAL AND OUTOFSTATE LIABILITY If you are liable in another state or liable for federal unemployment tax, you are automatically liable for any employment in Kentucky.
- PREVIOUS LIABILITY IN KENTUCKY If you did not sell your former business or otherwise terminate your account, you are automatically liable upon resuming employment.
The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.
Additional Employment Law for Employees Articles
- What Are The Eligibility Requirements To Draw Unemployment Benefits?
- How Is My Benefit Amount Determined?
- How Do I File A Claim For Unemployment Benefits?
- Can I Claim Partial Benefits?
- When Do Extended Benefits Go Into Effect?
- How Much Can A Claimant Receive In Extended Benefits?
- Please Explain Electronic Claims Filing.
- How Do I Establish An Unemployment Tax Account?
- How Do I Report Wages And Pay Unemployment Tax?
- How Is My Tax Rate Determined?
- What Are Reimbursing Accounts?
- Is A Work Permit Required For Employment Of A Minor?
- What Hours Can Children Work?
- Are There Certain Occupations That Are Prohibited For Minors?
- Where Can I Obtain More Information On Child Labor Laws?
- What is the minimum wage in Kentucky?
- How Soon Must My Employer Pay Me If I Quit?
- What Can I Do If I Am Denied Unemployment Benefits?