Kentucky Unemployment Tax Rates Set to Rise in 2021

By December 1, 2020News, Regional

The Kentucky Division of Unemployment Insurance announced that unemployment tax rates are set to increase for 2021.

Effective January 1, 2021, unemployment tax rates for experience-rated employers are to be determined with Schedule E. Rates are to range from 1.00% to 3.50% for positive-rated employers and from 7.50% to 10.00% for negative-rated employers.

Schedule A, which has the second-lowest range of rates out of the state’s six unemployment tax rate schedules, was in effect for 2020. Rates under Schedule A ranged from 0.30% to 9.00%.

Effective for 2021, the standard tax rate for new employers is to be 2.70%. The tax rate for new contract construction employers with out-of-state headquarters is to be 10.00%, up from 9.00% in 2020.

Kentucky’s unemployment-taxable wage base for 2021 is to be $11,100, up from $10,800 in 2020.

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Josh Kendall

Author Josh Kendall

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