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.
As always, if there are any questions please do not hesitate to contact us or visit our website at www.thomas-and-company.com.