Article provided by Kentucky Retail Federation
Governor Bevin announced Thursday that the Kentucky Education and Workforce Development Cabinet will suspend the current unemployment insurance (UI) surcharge for contributing employers, effective immediately.
The state’s approximately 91,000 employers have been paying a surcharge assessment – currently 0.21 percent of their taxable wage base of $10,200 per employee – since January 1, 2014.
Cabinet officials estimate that this action will save Kentucky companies as much as $34.2 million annually.
Tod Griffin, Kentucky Retail Federation President said. “By not having to pay the surcharge, Kentucky retailers will have an opportunity to increase hiring and grow their business.”
When the Great Recession of 2008 hit Kentucky and unemployment increased rapidly, the state borrowed nearly $1 billion from the federal government to cover the cost of benefits claims.
In response to the growing debt, former Governor Steve Beshear developed a task force to come up with solutions to pay down Kentucky’s unemployment debt. Kentucky Retail Federation Senior Vice President of Government Affairs Gay Dwyer was a key member of the task force providing input into its recommendations.
During the 2012 session of the General Assembly legislation passed requiring employers to pay a UI surcharge in order to payoff approximately $55 million in unpaid interest to the federal government.
Individuals and employers can find full details about UI at Kentucky’s Electronic Workplace for Employment Services – http://www.KEWES.ky.gov.