How Do I Know If I Am Liable For State Unemployment Taxes?

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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.

Other Kentucky Labor and Employment FAQs

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A: If you need to file a claim for unemployment benefits: Report to the nearest Unemployment Insurance Office and present your Social Security Card. Register for work … More
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A: Once you become liable, you will be required to file a report at the end of each calendar quarter listing your employees and their wages and compute and pay tax based … More
Q: How Is My Tax Rate Determined?
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