Kentucky house passes employer relief on unemployment insurance taxes

Published 5:46 am Tuesday, February 1, 2022

The Kentucky House overwhelmingly passed a bill Monday that would extend pandemic-related relief for employers on their unemployment insurance tax assessments.

The measure would allow employers to continue using the rate set for 2020 before the COVID-19 pandemic. Supporters say it it would save Kentucky businesses, on average, about $70 per employee. The bill would apply retroactively to Jan. 1, 2022, if it becomes law.

The bill was put on a fast track in the House, having cleared a committee late last week. The legislation won 87-4 passage in the House and now moves on to the Senate.

Continuing to lock in unemployment insurance tax rates would give small businesses some “breathing room” as they struggle with other pandemic-related challenges, including workforce shortages and supply chain problems, said Republican Rep. Russell Webber, the bill’s lead sponsor.