Removing the eight-week return to work expectation from the definition of temporary unemployment, excluding payments under compliant employer-sponsored supplemental unemployment benefit plans from the definition of wages and removing the negative debt write-off and forgiveness mechanism that conditionally moved employers to rate groups N11 for three years and the related option to avoid a negative debt write-off through voluntary contributions.

Session of 2026
SENATE BILL No. 512
By Committee on Assessment and Taxation
2-16
AN ACT concerning unemployment insurance; removing the eight-week
return to work expectation from the definition of temporary
unemployment; deleting the eight-week cap on temporary
unemployment; removing the secretary's authority and criteria to grant
eight-week extension increments, employer reporting duties for
extensions and the industry-specific eligibility for extensions;
excluding payments under compliant employer-sponsored supplemental
unemployment benefit plans from the definition of wages; removing
the negative debt write-off and forgiveness mechanism that
conditionally moved employers to rate groups N11 for three years and
the related option to avoid a negative debt write-off through voluntary
contributions; prohibiting charging contributing employers in ready-
mixed concrete and specified construction industries for benefit charges
arising from temporary layoffs; amending K.S.A. 2025 Supp. 44-703,
44-710, 44-710a and 44-775 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2025 Supp. 44-703 is hereby amended to read as
follows: 44-703. As used in this act, unless the context clearly requires
otherwise:
(a) (1) "Annual payroll" means the total amount of wages paid or
payable by an employer during the calendar year.
(2) "Average annual payroll" means the average of the annual
payrolls of any employer for the last three calendar years immediately
preceding the computation date as hereinafter defined if the employer has
been continuously subject to contributions during those three calendar
years and has paid some wages for employment during each of such years.
In determining contribution rates for the calendar year, if an employer has
not been continuously subject to contribution for the three calendar years
immediately preceding the computation date but has paid wages subject to
contributions during only the two calendar years immediately preceding
the computation date, such employer's "average annual payroll" shall be
the average of the payrolls for those two calendar years.
(3) "Total wages" means the total amount of wages paid or payable
by an employer during the calendar year, including that part of
remuneration in excess of the limitation prescribed as provided in
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SB 512 2
subsection (o)(1).
(b) "Base period" means the first four of the last five completed
calendar quarters immediately preceding the first day of an individual's
benefit year, except that the base period in respect to combined wage
claims means the base period as defined in the law of the paying state.
(1) If an individual lacks sufficient base period wages in order to
establish a benefit year in the manner set forth above and satisfies the
requirements of subsection (hh) and K.S.A. 44-705(g), and amendments
thereto, the claimant shall have an alternative base period substituted for
the current base period so as not to prevent establishment of a valid claim.
For the purposes of this subsection, "alternative base period" means the
last four completed quarters immediately preceding the date the qualifying
injury occurred. In the event the wages in the alternative base period have
been used on a prior claim, then they shall be excluded from the new
alternative base period.
(2) For the purposes of this chapter, the term "base period" includes
the alternative base period.
(c) (1) "Benefits" means the money payments payable to an
individual, as provided in this act, with respect to such individual's
unemployment.
(2) "Regular benefits" means benefits payable to an individual under
this act or under any other state law, including benefits payable to federal
civilian employees and to ex-servicemen pursuant to 5 U.S.C. chapter 85,
other than extended benefits.
(d) "Benefit year" with respect to any individual, means the period
beginning with the Sunday of the first week for which such individual files
a valid claim for benefits, and such benefit year shall continue for one full
year. In the case of a combined wage claim, the benefit year shall be the
benefit year of the paying state. Following the termination of a benefit
year, a subsequent benefit year shall commence on the Sunday of the first
week with respect to which an individual next files a claim for benefits.
Any claim for benefits made in accordance with K.S.A. 44-709(a), and
amendments thereto, shall be deemed to be a "valid claim" for the
purposes of this subsection if the individual has been paid wages for
insured work as required under K.S.A. 44-705(e), and amendments
thereto.
(e) "Commissioner" or "secretary" means the secretary of labor.
(f) (1) "Contributions" means the money payments to the state
employment security fund that are required to be made by employers on
account of employment under K.S.A. 44-710, and amendments thereto,
and voluntary payments made by employers pursuant to such statute.
(2) "Payments in lieu of contributions" means the money payments to
the state employment security fund from employers that are required to
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SB 512 3
make or that elect to make such payments under K.S.A. 44-710(e), and
amendments thereto.
(g) "Employing unit" means any individual or type of organization,
including any partnership, association, limited liability company, agency
or department of the state of Kansas and political subdivisions thereof,
trust, estate, joint-stock company, insurance company or corporation,
whether domestic or foreign including nonprofit corporations, or the
receiver, trustee in bankruptcy, trustee or successor thereof, or the legal
representatives of a deceased person, that has in its employ one or more
individuals performing services for it within this state. All individuals
performing services within this state for any employing unit that maintains
two or more separate establishments within this state shall be deemed to be
employed by a single employing unit for all the purposes of this act. Each
individual employed to perform or to assist in performing the work of any
agent or employee of an employing unit shall be deemed to be employed
by such employing unit for all the purposes of this act, whether such
individual was hired or paid directly by such employing unit or by such
agent or employee, provided the employing unit had actual or constructive
knowledge of the employment.
(h) "Employer" means:
(1) (A) Any employing unit for which agricultural labor as defined in
subsection (w) is performed and during any calendar quarter in either the
current or preceding calendar year paid remuneration in cash of $20,000 or
more to individuals employed in agricultural labor or for some portion of a
day in each of 20 different calendar weeks, whether or not such weeks
were consecutive, in either the current or the preceding calendar year,
employed in agricultural labor 10 or more individuals, regardless of
whether they were employed at the same moment of time.
(B) For the purpose of this subsection (h)(1), any individual who is a
member of a crew furnished by a crew leader to perform services in
agricultural labor for any other person shall be treated as an employee of
such crew leader if:
(i) Such crew leader holds a valid certificate of registration under the
federal migrant and seasonal agricultural workers protection act or
substantially all the members of such crew operate or maintain tractors,
mechanized harvesting or cropdusting equipment or any other mechanized
equipment, that is provided by such crew leader; and
(ii) such individual is not in the employment of such other person
within the meaning of subsection (i).
(C) For the purpose of this subsection (h)(1), in the case of any
individual who is furnished by a crew leader to perform services in
agricultural labor for any other person and who is not treated as an
employee of such crew leader:
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(i) Such other person and not the crew leader shall be treated as the
employer of such individual; and
(ii) such other person shall be treated as having paid cash
remuneration to such individual in an amount equal to the amount of cash
remuneration paid to such individual by the crew leader, either on the crew
leader's own behalf or on behalf of such other person, for the services in
agricultural labor performed for such other person.
(D) For the purposes of this subsection (h)(1) "crew leader" means an
individual who:
(i) Furnishes individuals to perform services in agricultural labor for
any other person;
(ii) pays, either on such individual's own behalf or on behalf of such
other person, the individuals so furnished by such individual for the
services in agricultural labor performed by them; and
(iii) has not entered into a written agreement with such other person
under which such individual is designated as an employee of such other
person.
(2) (A) Any employing unit that for calendar year 2007 and each
calendar year thereafter: (i) In any calendar quarter in either the current or
preceding calendar year paid for services in employment wages of $1,500
or more; (ii) for some portion of a day in each of 20 different calendar
weeks, whether or not such weeks were consecutive, in either the current
or preceding calendar year, had in employment at least one individual,
whether or not the same individual was in employment in each such day;
or (iii) elects to have an unemployment tax account established at the time
of initial registration in accordance with K.S.A. 44-711(c), and
amendments thereto.
(B) Employment of individuals to perform domestic service or
agricultural labor and wages paid for such service or labor shall not be
considered in determining whether an employing unit meets the criteria of
this subsection (h)(2).
(3) Any employing unit for which service is employment as defined
in subsection (i)(3)(E).
(4) (A) Any employing unit, whether or not it is an employing unit
under subsection (g), that acquires or in any manner succeeds to: (i)
Substantially all of the employing enterprises, organization, trade or
business; or (ii) substantially all the assets, of another employing unit that
at the time of such acquisition was an employer subject to this act;
(B) any employing unit that is controlled substantially, either directly
or indirectly by legally enforceable means or otherwise, by the same
interest or interests, whether or not such interest or interests are an
employing unit under subsection (g), acquires or in any manner succeeds
to a portion of an employer's annual payroll, is less than 100% of such
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SB 512 5
employer's annual payroll, and intends to continue the acquired portion as
a going business.
(5) Any employing unit that paid cash remuneration of $1,000 or
more in any calendar quarter in the current or preceding calendar year to
individuals employed in domestic service as defined in subsection (aa).
(6) Any employing unit that having become an employer under this
subsection (h) has not, under K.S.A. 44-711(b), and amendments thereto,
ceased to be an employer subject to this act.
(7) Any employing unit that has elected to become fully subject to
this act in accordance with K.S.A. 44-711(c), and amendments thereto.
(8) Any employing unit not an employer by reason of any other
paragraph of this subsection (h), for which within either the current or
preceding calendar year services in employment are or were performed
with respect to which such employing unit is liable for any federal tax
against which credit may be taken for contributions required to be paid
into a state unemployment compensation fund; or that, as a condition for
approval of this act for full tax credit against the tax imposed by the
federal unemployment tax act, is required, pursuant to such act, to be an
"employer" under this act.
(9) Any employing unit described in section 501(c)(3) of the federal
internal revenue code of 1986 that is exempt from income tax under
section 501(a) of the code that had four or more individuals in
employment for some portion of a day in each of 20 different weeks,
whether or not such weeks were consecutive, within either the current or
preceding calendar year, regardless of whether they were employed at the
same moment of time.
(i) "Employment" means:
(1) Subject to the other provisions of this subsection, service,
including services in interstate commerce, performed by:
(A) Any active officer of a corporation;
(B) any individual who, under the usual common law rules applicable
in determining the employer-employee relationship, has the status of an
employee subject to the provisions of subsection (i)(3)(D); or
(C) any individual other than an individual who is an employee under
subsection (i)(1)(A) or subsection (i)(1)(B) above who performs services
for remuneration for any person:
(i) As an agent-driver or commission-driver engaged in distributing
meat products, vegetable products, fruit products, bakery products,
beverages, other than milk, or laundry or dry-cleaning services, for such
individual's principal; or
(ii) as a traveling or city salesman, other than as an agent-driver or
commission-driver, engaged upon a full-time basis in the solicitation on
behalf of, and the transmission to, a principal, except for side-line sales
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SB 512 6
activities on behalf of some other person, of orders from wholesalers,
retailers, contractors, or operators of hotels, restaurants, or other similar
establishments for merchandise for resale or supplies for use in their
business operations.
For purposes of subsection (i)(1)(C), the term "employment" includes
services described in paragraphs (i) and (ii) above only if:
(a) The contract of service contemplates that substantially all of the
services are to be performed personally by such individual;
(b) the individual does not have a substantial investment in facilities
used in connection with the performance of the services, other than in
facilities for transportation; and
(c) the services are not in the nature of a single transaction that is not
part of a continuing relationship with the person for whom the services are
performed.
(2) The term "employment" includes an individual's entire service
within the United States, even though performed entirely outside this state
if:
(A) The service is not localized in any state;
(B) the individual is one of a class of employees who are required to
travel outside this state in performance of their duties; and
(C) the individual's base of operations is in this state, or if there is no
base of operations, then the place where service is directed or controlled is
in this state.
(3) The term "employment" also includes:
(A) Services performed within this state but not covered by the
provisions of subsection (i)(1) or subsection (i)(2) shall be deemed to be
employment subject to this act if contributions are not required and paid
with respect to such services under an unemployment compensation law of
any other state or of the federal government.
(B) Services performed entirely without this state, with respect to no
part of which contributions are required and paid under an unemployment
compensation law of any other state or of the federal government, shall be
deemed to be employment subject to this act only if the individual
performing such services is a resident of this state and the secretary
approved the election of the employing unit for whom such services are
performed that the entire service of such individual shall be deemed to be
employment subject to this act.
(C) Services covered by an arrangement pursuant to K.S.A. 44-
714(j), and amendments thereto, between the secretary and the agency
charged with the administration of any other state or federal
unemployment compensation law, pursuant to which all services
performed by an individual for an employing unit are deemed to be
performed entirely within this state, shall be deemed to be employment if
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SB 512 7
the secretary has approved an election of the employing unit for whom
such services are performed, pursuant to which the entire service of such
individual during the period covered by such election is deemed to be
insured work.
(D) Services performed by an individual for wages or under any
contract of hire shall be deemed to be employment subject to this act if the
business for which activities of the individual are performed retains not
only the right to control the end result of the activities performed, but the
manner and means by which the end result is accomplished.
(E) Services performed by an individual in the employ of a state or
any instrumentality thereof, any political subdivision of a state or any
instrumentality thereof, or in the employ of an Indian tribe, as defined
pursuant to section 3306(u) of the federal unemployment tax act, any
instrumentality of more than one of the foregoing or any instrumentality
that is jointly owned by this state or a political subdivision thereof or
Indian tribes and one or more other states or political subdivisions of this
or other states, provided that such service is excluded from "employment"
as defined in the federal unemployment tax act by reason of section
3306(c)(7) of that act and is not excluded from "employment" under
subsection (i)(4)(A) of this section. For purposes of this section, the
exclusions from employment in subsections (i)(4)(A) and (i)(4)(L) shall
also be applicable to services performed in the employ of an Indian tribe.
(F) Services performed by an individual in the employ of a religious,
charitable, educational or other organization that is excluded from the term
"employment" as defined in the federal unemployment tax act solely by
reason of section 3306(c)(8) of that act, and is not excluded from
employment under subsection (i)(4)(I) through (M).
(G) The term "employment" includes the services of an individual
who is a citizen of the United States, performed outside the United States
except in Canada, in the employ of an American employer, other than
service that is deemed "employment" under the provisions of subsection (i)
(2) or subsection (i)(3) or the parallel provisions of another state's law, if:
(i) The employer's principal place of business in the United States is
located in this state; or
(ii) the employer has no place of business in the United States, but:
(a) The employer is an individual who is a resident of this state;
(b) the employer is a corporation which is organized under the laws
of this state; or
(c) the employer is a partnership or a trust and the number of the
partners or trustees who are residents of this state is greater than the
number who are residents of any other state; or
(iii) none of the criteria of (i)(3)(G)(i) and (ii) are met but the
employer has elected coverage in this state or, the employer having failed
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SB 512 8
to elect coverage in any state, the individual has filed a claim for benefits,
based on such service, under the law of this state.
(H) An "American employer," for purposes of subsection (i)(3)(G),
means a person who is:
(i) An individual who is a resident of the United States;
(ii) a partnership if ⅔ or more of the partners are residents of the
United States;
(iii) a trust, if all of the trustees are residents of the United States; or
(iv) a corporation organized under the laws of the United States or of
any state.
(I) Notwithstanding subsection (i)(2), all services performed by an
officer or member of the crew of an American vessel or American aircraft
on or in connection with such vessel or aircraft, if the operating office,
from which the operations of such vessel or aircraft operating within, or
within and without, the United States are ordinarily and regularly
supervised, managed, directed and controlled is within this state.
(J) Notwithstanding any other provisions of this subsection (i),
services with respect to which a tax is required to be paid under any
federal law imposing a tax against which credit may be taken for
contributions required to be paid into a state unemployment compensation
fund or that as a condition for full tax credit against the tax imposed by the
federal unemployment tax act is required to be covered under this act.
(K) Domestic service in a private home, local college club or local
chapter of a college fraternity or sorority performed for a person who paid
cash remuneration of $1,000 or more in any calendar quarter in the current
calendar year or the preceding calendar year to individuals employed in
such domestic service.
(4) The term "employment" does not include: (A) Services performed
in the employ of an employer specified in subsection (h)(3) if such service
is performed by an individual in the exercise of duties:
(i) As an elected official;
(ii) as a member of a legislative body, or a member of the judiciary, of
a state, political subdivision or of an Indian tribe;
(iii) as a member of the state national guard or air national guard;
(iv) as an employee serving on a temporary basis in case of fire,
storm, snow, earthquake, flood or similar emergency;
(v) in a position that, under or pursuant to the laws of this state or
tribal law, is designated as a major nontenured policymaking or advisory
position or as a policymaking or advisory position the performance of the
duties of which ordinarily does not require more than eight hours per
week;
(B) services with respect to which unemployment compensation is
payable under an unemployment compensation system established by an
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SB 512 9
act of congress;
(C) services performed by an individual in the employ of such
individual's son, daughter or spouse, and services performed by a child
under the age of 21 years in the employ of such individual's father or
mother;
(D) services performed in the employ of the United States
government or an instrumentality of the United States exempt under the
constitution of the United States from the contributions imposed by this
act, except that to the extent that the congress of the United States shall
permit states to require any instrumentality of the United States to make
payments into an unemployment fund under a state unemployment
compensation law, all of the provisions of this act shall be applicable to
such instrumentalities, and to services performed for such
instrumentalities, in the same manner, to the same extent and on the same
terms as to all other employers, employing units, individuals and services.
If this state shall not be certified for any year by the federal security
agency under section 3304(c) of the federal internal revenue code of 1986,
the payments required of such instrumentalities with respect to such year
shall be refunded by the secretary from the fund in the same manner and
within the same period as is provided in K.S.A. 44-717(h), and
amendments thereto, with respect to contributions erroneously collected;
(E) services covered by an arrangement between the secretary and the
agency charged with the administration of any other state or federal
unemployment compensation law pursuant to which all services performed
by an individual for an employing unit during the period covered by such
employing unit's duly approved election, are deemed to be performed
entirely within the jurisdiction of such other state or federal agency;
(F) services performed by an individual under the age of 18 in the
delivery or distribution of newspapers or shopping news, not including
delivery or distribution to any point for subsequent delivery or
distribution;
(G) services performed by an individual for an employing unit as an
insurance agent or as an insurance solicitor, if all such service performed
by such individual for such employing unit is performed for remuneration
solely by way of commission;
(H) services performed in any calendar quarter in the employ of any
organization exempt from income tax under section 501(a) of the federal
internal revenue code of 1986, other than an organization described in
section 401(a) or under section 521 of such code, if the remuneration for
such service is less than $50. In construing the application of the term
"employment," if services performed during ½ or more of any pay period
by an individual for the person employing such individual constitute
employment, all the services of such individual for such period shall be
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SB 512 10
deemed to be employment; but if the services performed during more than
½ of any such pay period by an individual for the person employing such
individual do not constitute employment, then none of the services of such
individual for such period shall be deemed to be employment. As used in
this subsection (i)(4)(H) the term "pay period" means a period, of not more
than 31 consecutive days, for which a payment of remuneration is
ordinarily made to the individual by the person employing such individual.
This subsection (i)(4)(H) shall not be applicable with respect to services
with respect to which unemployment compensation is payable under an
unemployment compensation system established by an act of congress;
(I) services performed in the employ of a church or convention or
association of churches, or an organization which is operated primarily for
religious purposes and which is operated, supervised, controlled, or
principally supported by a church or convention or association of
churches;
(J) services performed by a duly ordained, commissioned, or licensed
minister of a church in the exercise of such individual's ministry or by a
member of a religious order in the exercise of duties required by such
order;
(K) services performed in a facility conducted for the purpose of
carrying out a program of:
(i) Rehabilitation for individuals whose earning capacity is impaired
by age or physical or mental deficiency or injury; or
(ii) providing remunerative work for individuals who because of their
impaired physical or mental capacity cannot be readily absorbed in the
competitive labor market, by an individual receiving such rehabilitation or
remunerative work;
(L) services performed as part of an employment work-relief or
work-training program assisted or financed in whole or in part by any
federal agency or an agency of a state or political subdivision thereof or of
an Indian tribe, by an individual receiving such work relief or work
training;
(M) services performed by an inmate of a custodial or correctional
institution;
(N) services performed, in the employ of a school, college, or
university, if such service is performed by a student who is enrolled and is
regularly attending classes at such school, college or university;
(O) services performed by an individual who is enrolled at a
nonprofit or public educational institution that normally maintains a
regular faculty and curriculum and normally has a regularly organized
body of students in attendance at the place where its educational activities
are carried on as a student in a full-time program, taken for credit at such
institution, that combines academic instruction with work experience, if
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such service is an integral part of such program, and such institution has so
certified to the employer, except that this subsection (i)(4)(O) shall not
apply to service performed in a program established for or on behalf of an
employer or group of employers;
(P) services performed in the employ of a hospital licensed, certified
or approved by the secretary of health and environment, if such service is
performed by a patient of the hospital;
(Q) services performed as a qualified real estate agent. As used in this
subsection (i)(4)(Q) the term "qualified real estate agent" means any
individual who is licensed by the Kansas real estate commission as a
salesperson under the real estate brokers' and salespersons' license act and
for whom:
(i) Substantially all of the remuneration, whether or not paid in cash,
for the services performed by such individual as a real estate salesperson is
directly related to sales or other output, including the performance of
services, rather than to the number of hours worked; and
(ii) the services performed by the individual are performed pursuant
to a written contract between such individual and the person for whom the
services are performed and such contract provides that the individual will
not be treated as an employee with respect to such services for state tax
purposes;
(R) services performed for an employer by an extra in connection
with any phase of motion picture or television production or television
commercials for less than 14 days during any calendar year. As used in this
subsection, the term "extra" means an individual who pantomimes in the
background, adds atmosphere to the set and performs such actions without
speaking and "employer" shall not include any employer that is a
governmental entity or any employer described in section 501(c)(3) of the
federal internal revenue code of 1986 that is exempt from income taxation
under section 501(a) of the code;
(S) services performed by an oil and gas contract pumper. As used in
this subsection (i)(4)(S), "oil and gas contract pumper" means a person
performing pumping and other services on one or more oil or gas leases, or
on both oil and gas leases, relating to the operation and maintenance of
such oil and gas leases, on a contractual basis for the operators of such oil
and gas leases and "services" shall not include services performed for a
governmental entity or any organization described in section 501(c)(3) of
the federal internal revenue code of 1986 that is exempt from income
taxation under section 501(a) of the code;
(T) service not in the course of the employer's trade or business
performed in any calendar quarter by an employee, unless the cash
remuneration paid for such service is $200 or more and such service is
performed by an individual who is regularly employed by such employer
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to perform such service. For purposes of this paragraph, an individual shall
be deemed to be regularly employed by an employer during a calendar
quarter only if:
(i) On each of some 24 days during such quarter such individual
performs for such employer for some portion of the day service not in the
course of the employer's trade or business; or
(ii) such individual was regularly employed, as determined under
subparagraph (i), by such employer in the performance of such service
during the preceding calendar quarter.
Such excluded service shall not include any services performed for an
employer that is a governmental entity or any employer described in
section 501(c)(3) of the federal internal revenue code of 1986 that is
exempt from income taxation under section 501(a) of the code;
(U) service which is performed by any person who is a member of a
limited liability company and that is performed as a member or manager of
that limited liability company; and
(V) services performed as a qualified direct seller. The term "direct
seller" means any person if:
(i) Such person:
(a) Is engaged in the trade or business of selling or soliciting the sale
of consumer products to any buyer on a buy-sell basis or a deposit-
commission basis for resale, by the buyer or any other person, in the home
or otherwise rather than in a permanent retail establishment; or
(b) is engaged in the trade or business of selling or soliciting the sale
of consumer products in the home or otherwise than in a permanent retail
establishment;
(ii) substantially all the remuneration whether or not paid in cash for
the performance of the services described in subparagraph (i) is directly
related to sales or other output including the performance of services rather
than to the number of hours worked;
(iii) the services performed by the person are performed pursuant to a
written contract between such person and the person for whom the services
are performed and such contract provides that the person will not be
treated as an employee for federal and state tax purposes;
(iv) for purposes of this act, a sale or a sale resulting exclusively from
a solicitation made by telephone, mail, or other telecommunications
method, or other nonpersonal method does not satisfy the requirements of
this subsection;
(W) services performed as an election official or election worker, if
the amount of remuneration received by the individual during the calendar
year for services as an election official or election worker is less than
$1,000;
(X) services performed by agricultural workers who are aliens
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admitted to the United States to perform labor pursuant to section 1101(a)
(15)(H)(ii)(a) of the immigration and nationality act;
(Y) services performed by an owner-operator of a motor vehicle that
is leased or contracted to a licensed motor carrier with the services of a
driver and is not treated under the terms of the lease agreement or contract
with the licensed motor carrier as an employee for purposes of the federal
insurance contribution act, 26 U.S.C. § 3101 et seq ., the federal social
security act, 42 U.S.C. § 301 et seq., the federal unemployment tax act, 26
U.S.C. § 3301 et seq ., and the federal statutes prescribing income tax
withholding at the source, 26 U.S.C. § 3401 et seq. Employees or agents of
the owner-operator shall not be considered employees of the licensed
motor carrier for purposes of employment security taxation or
compensation. As used in this subsection (Y), the following definitions
apply: (i) "Motor vehicle" means any automobile, truck-trailer, semitrailer,
tractor, motor bus or any other self-propelled or motor-driven vehicle used
upon any of the public highways of Kansas for the purpose of transporting
persons or property; (ii) "licensed motor carrier" means any person, firm,
corporation or other business entity that holds a certificate of convenience
and necessity or a certificate of public service from the state corporation
commission or is required to register motor carrier equipment pursuant to
49 U.S.C. § 14504; and (iii) "owner-operator" means a person, firm,
corporation or other business entity that is the owner of a single motor
vehicle that is driven exclusively by the owner under a lease agreement or
contract with a licensed motor carrier; and
(Z) services performed by a petroleum landman on a contractual
basis. As used in this subparagraph, "petroleum landman" means an
individual performing services on a contractual basis who is not an
individual who is an active officer of a corporation as described in
subsection (i)(1)(A) that may include:
(i) Negotiating for the acquisition or divestiture of mineral rights;
(ii) negotiating business agreements that provide exploration for or
development of minerals;
(iii) determining ownership in minerals through the research of public
and private records;
(iv) reviewing the status of title, curing title defects, providing title
due diligence and otherwise reducing title risk associated with ownership
in minerals or the acquisition and divestiture of mineral properties;
(v) managing rights or obligations derived from ownership of
interests in minerals; or
(vi) unitizing or pooling of interests in minerals. For purposes of this
subparagraph, "minerals" includes oil, natural gas or petroleum. "Services"
does not include services performed for a governmental entity or any
organization described in section 501(c)(3) of the federal internal revenue
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code of 1986 , or a federally recognized Indian tribe that is exempt from
income taxation under section 501(a) of the code.
(j) "Employment office" means any office operated by this state and
maintained by the secretary of labor for the purpose of assisting persons to
become employed.
(k) "Fund" means the employment security fund established by this
act, to which all contributions and reimbursement payments required and
from which all benefits provided under this act shall be paid and including
all money received from the federal government as reimbursements
pursuant to section 204 of the federal-state extended compensation act of
1970, and amendments thereto.
(l) "State" includes, in addition to the states of the United States of
America, any dependency of the United States, the Commonwealth of
Puerto Rico, the District of Columbia and the Virgin Islands.
(m) "Unemployment." An individual shall be deemed "unemployed"
with respect to any week during which such individual performs no
services and with respect to which no wages are payable to such
individual, or with respect to any week of less than full-time work if the
wages payable to such individual with respect to such week are less than
such individual's weekly benefit amount.
(n) "Employment security administration fund" means the fund
established by this act, from which administrative expenses under this act
shall be paid.
(o) "Wages" means all compensation for services, including
commissions, bonuses, back pay and the cash value of all remuneration,
including benefits, paid in any medium other than cash. The reasonable
cash value of remuneration in any medium other than cash, shall be
estimated and determined in accordance with rules and regulations
prescribed by the secretary. Compensation payable to an individual that
has not been actually received by that individual within 21 days after the
end of the pay period in which the compensation was earned shall be
considered to have been paid on the 21 st day after the end of that pay
period. Effective January 1, 1986, gratuities, including tips received from
persons other than the employing unit, shall be considered wages when
reported in writing to the employer by the employee. Employees must
furnish a written statement to the employer, reporting all tips received if
they total $20 or more for a calendar month whether the tips are received
directly from a person other than the employer or are paid over to the
employee by the employer. This includes amounts designated as tips by a
customer who uses a credit card to pay the bill. Notwithstanding the other
provisions of this subsection (o), wages paid in back pay awards or
settlements shall be allocated to the week or weeks and reported in the
manner as specified in the award or agreement, or, in the absence of such
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SB 512 15
specificity in the award or agreement, such wages shall be allocated to the
week or weeks in which such wages, in the judgment of the secretary,
would have been paid. The term "wages" shall not include:
(1) For calendar years 2016 through 2025, that part of the
remuneration that has been paid in a calendar year to an individual by an
employer or such employer's predecessor in excess of $14,000, except that
if the definition of the term "wages" as contained in the federal
unemployment tax act is amended to include remuneration paid to an
individual by an employer under the federal act in excess of $14,000 with
respect to employment during calendar years 2016 through 2025, wages
shall include remuneration paid in a calendar year to an individual by an
employer subject to this act or such employer's predecessor with respect to
employment during any calendar year up to an amount equal to the dollar
limitation specified in the federal unemployment tax act. For the purposes
of this subsection (o)(1), the term "employment" shall include service
constituting employment under any employment security law of another
state or of the federal government;
(2) (A) For the calendar year as set forth below, except as provided by
subparagraph (B), for contributing rated employers assigned rate groups 0-
N11, that part of the remuneration that has been paid in a calendar year to
an individual by an employer or such employer's predecessor in excess of
the specified percentage of the statewide average annual wage paid to
employees in insured work during the previous calendar year and rounded
to the nearest multiple of $100:
(i) Calendar years 2026 through 2027, 25%;
(ii) calendar year 2028, 30%;
(iii) calendar year 2029, 35%;
(iv) calendar years 2030 through 2031, 40%; and
(v) calendar year 2032 and all ensuing calendar years thereafter:
(a) 40%, except as provided in subclause (b); and
(b) 45% if any combination of employer rate schedules G through M,
as provided in K.S.A. 44-710a(a)(4)(C), and amendments thereto, is in
effect for any five consecutive preceding calendar years occurring after
calendar year 2031. The specified percentage of 45% shall then remain in
effect for all ensuing calendar years thereafter notwithstanding any
changes to the employer rate schedules in effect during such ensuing
calendar years.
(B) If the definition of the term "wages" as contained in the federal
unemployment tax act is amended to include the remuneration paid to an
individual by an employer under the federal act in excess of the amount
calculated pursuant to subparagraph (A), then with respect to employment
during all calendar years thereafter, wages shall include the remuneration
paid in a calendar year to an individual by an employer subject to this act
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SB 512 16
or such employer's predecessor with respect to employment during any
calendar year up to an amount equal to the dollar limitation specified in the
federal unemployment tax act.
(C) For purposes of subparagraphs (A) and (B):
(i) "Employment" includes service constituting employment under
any employment security law of another state or of the federal
government; and
(ii) "statewide average annual wage" means the statewide average
annual wage as defined by subsection (jj) and computed by the secretary
on July 1 each year, as provided by K.S.A. 44-704, and amendments
thereto;
(3) the amount of any payment, including any amount paid by an
employing unit for insurance or annuities, or into a fund, to provide for
any such payment, made to, or on behalf of, an employee or any of such
employee's dependents under a plan or system established by an employer
that makes provisions for employees generally, for a class or classes of
employees or for such employees or a class or classes of employees and
their dependents, on account of:
(A) Sickness or accident disability, except in the case of any payment
made to an employee or such employee's dependents, this subparagraph
shall exclude from the term "wages" only payments that are received under
a workers compensation law. Any third party that makes a payment
included as wages by reason of this subparagraph shall be treated as the
employer with respect to such wages;
(B) medical and hospitalization expenses in connection with sickness
or accident disability; or
(C) death;
(4) any payment on account of sickness or accident disability, or
medical or hospitalization expenses in connection with sickness or
accident disability, made by an employer to, or on behalf of, an employee
after the expiration of six calendar months following the last calendar
month in which the employee worked for such employer;
(5) any payment made to, or on behalf of, an employee or such
employee's beneficiary:
(A) From or to a trust described in section 401(a) of the federal
internal revenue code of 1986 that is exempt from tax under section 501(a)
of the federal internal revenue code of 1986 at the time of such payment
unless such payment is made to an employee of the trust as remuneration
for services rendered as such employee and not as a beneficiary of the
trust;
(B) under or to an annuity plan that, at the time of such payment, is a
plan described in section 403(a) of the federal internal revenue code of
1986;
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(C) under a simplified employee pension as defined in section 408(k)
(1) of the federal internal revenue code of 1986, other than any
contribution described in section 408(k)(6) of the federal internal revenue
code of 1986;
(D) under or to an annuity contract described in section 403(b) of the
federal internal revenue code of 1986, other than a payment for the
purchase of such contract that was made by reason of a salary reduction
agreement whether evidenced by a written instrument or otherwise;
(E) under or to an exempt governmental deferred compensation plan
as defined in section 3121(v)(3) of the federal internal revenue code of
1986;
(F) to supplement pension benefits under a plan or trust described in
any of the foregoing provisions of this subparagraph to take into account
some portion or all of the increase in the cost of living, as determined by
the secretary of labor, since retirement but only if such supplemental
payments are under a plan that is treated as a welfare plan under section
3(2)(B)(ii) of the federal employee retirement income security act of 1974;
or
(G) under a cafeteria plan within the meaning of section 125 of the
federal internal revenue code of 1986;
(6) the payment by an employing unit, without deduction from the
remuneration of the employee, of the tax imposed upon an employee under
section 3101 of the federal internal revenue code of 1986 with respect to
remuneration paid to an employee for domestic service in a private home
of the employer or for agricultural labor;
(7) remuneration paid in any medium other than cash to an employee
for service not in the course of the employer's trade or business;
(8) remuneration paid to or on behalf of an employee if and to the
extent that at the time of the payment of such remuneration it is reasonable
to believe that a corresponding deduction is allowable under section 217 of
the federal internal revenue code of 1986 relating to moving expenses;
(9) any payment or series of payments by an employer to an
employee or any of such employee's dependents that is paid:
(A) Upon or after the termination of an employee's employment
relationship because of (i) death or (ii) retirement for disability; and
(B) under a plan established by the employer that makes provisions
for employees generally, a class or classes of employees or for such
employees or a class or classes of employees and their dependents, other
than any such payment or series of payments that would have been paid if
the employee's employment relationship had not been so terminated;
(10) remuneration for agricultural labor paid in any medium other
than cash;
(11) any payment made, or benefit furnished, to or for the benefit of
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SB 512 18
an employee if at the time of such payment or such furnishing it is
reasonable to believe that the employee will be able to exclude such
payment or benefit from income under section 129 of the federal internal
revenue code of 1986 that relates to dependent care assistance programs;
(12) the value of any meals or lodging furnished by or on behalf of
the employer if at the time of such furnishing it is reasonable to believe
that the employee will be able to exclude such items from income under
section 119 of the federal internal revenue code of 1986;
(13) any payment made by an employer to a survivor or the estate of
a former employee after the calendar year in which such employee died;
(14) any benefit provided to or on behalf of an employee if at the time
such benefit is provided it is reasonable to believe that the employee will
be able to exclude such benefit from income under section 74(c), 117 or
132 of the federal internal revenue code of 1986;
(15) any payment made, or benefit furnished, to or for the benefit of
an employee, if at the time of such payment or such furnishing it is
reasonable to believe that the employee will be able to exclude such
payment or benefit from income under section 127 of the federal internal
revenue code of 1986 relating to educational assistance to the employee; or
(16) any payment made to or for the benefit of an employee if at the
time of such payment it is reasonable to believe that the employee will be
able to exclude such payment from income under section 106(d) of the
federal internal revenue code of 1986 relating to health savings accounts ;
or
(17) (A) payments from an employer-sponsored supplemental
unemployment benefit plan that meets all of the following conditions:
(i) Is funded entirely by the employer;
(ii) is provided only to individuals who are unemployed due to a lack
of work and eligible for benefits under this act;
(iii) supplements rather than replaces state unemployment
compensation;
(iv) complies with the criteria set forth in 26 U.S.C. § 3306(b)(9),
internal revenue service revenue rulings 56-249 and 90-72 and applicable
federal guidance; and
(v) is not paid in a lump sum or in lieu of wages.
(B) Payments made under a compliant supplemental unemployment
benefit plan shall not be considered "wages" or "remuneration" for
purposes of eligibility, disqualification, the waiting week or the
calculation of weekly benefit amounts under the unemployment security
law.
This subsection shall be construed in conformity with 26 U.S.C. §
3304(a)(4) and 42 U.S.C. § 503(a) and interpreted in accordance with
United States department of labor conformity guidance.
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Nothing in any paragraph of subsection (o), other than paragraphs (1)
and (2), shall exclude from the term "wages": (1) Any employer
contribution under a qualified cash or deferred arrangement, as defined in
section 401(k) of the federal internal revenue code of 1986, to the extent
that such contribution is not included in gross income by reason of section
402(a)(8) of the federal internal revenue code of 1986; or (2) any amount
treated as an employer contribution under section 414(h)(2) of the federal
internal revenue code of 1986.
Any amount deferred under a nonqualified deferred compensation plan
shall be taken into account for purposes of this section as of the later of
when the services are performed or when there is no substantial risk of
forfeiture of the rights to such amount. Any amount taken into account as
wages by reason of this paragraph, and the income attributable thereto,
shall not thereafter be treated as wages for purposes of this section. For
purposes of this paragraph, the term "nonqualified deferred compensation
plan" means any plan or other arrangement for deferral of compensation
other than a plan described in subsection (o)(5).
(p) "Week" means such period or periods of seven consecutive
calendar days, as the secretary may by rules and regulations prescribe.
(q) "Calendar quarter" means the period of three consecutive calendar
months ending March 31, June 30, September 30 or December 31, or the
equivalent thereof as the secretary may by rules and regulations prescribe.
(r) "Insured work" means employment for employers.
(s) "Approved training" means any vocational training course or
course in basic education skills, including a job training program
authorized under the federal workforce investment act of 1998, approved
by the secretary or a person or persons designated by the secretary.
(t) "American vessel" or "American aircraft" means any vessel or
aircraft documented or numbered or otherwise registered under the laws of
the United States; and any vessel or aircraft that is neither documented or
numbered or otherwise registered under the laws of the United States nor
documented under the laws of any foreign country, if its crew performs
service solely for one or more citizens or residents of the United States or
corporations organized under the laws of the United States or of any state.
(u) "Institution of higher education," for the purposes of this section,
means an educational institution that:
(1) Admits as regular students only individuals having a certificate of
graduation from a high school, or the recognized equivalent of such a
certificate;
(2) is legally authorized in this state to provide a program of
education beyond high school;
(3) provides an educational program for which it awards a bachelor's
or higher degree, or provides a program that is acceptable for full credit
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toward such a degree, a program of postgraduate or postdoctoral studies,
or a program of training to prepare students for gainful employment in a
recognized occupation; and
(4) is a public or other nonprofit institution.
Notwithstanding any of the foregoing provisions of this subsection (u),
all colleges and universities in this state are institutions of higher education
for purposes of this section, except that no college, university, junior
college or other postsecondary school or institution that is operated by the
federal government or any agency thereof shall be an institution of higher
education for purposes of the employment security law.
(v) "Educational institution" means any institution of higher
education, as defined in subsection (u), or any institution, except private
for profit institutions, in which participants, trainees or students are offered
an organized course of study or training designed to transfer to them
knowledge, skills, information, doctrines, attitudes or abilities from, by or
under the guidance of an instructor or teacher and that is approved,
licensed or issued a permit to operate as a school by the state department
of education or other government agency that is authorized within the state
to approve, license or issue a permit for the operation of a school or to an
Indian tribe in the operation of an educational institution. The courses of
study or training that an educational institution offers may be academic,
technical, trade or preparation for gainful employment in a recognized
occupation.
(w) (1) "Agricultural labor" means any remunerated service:
(A) On a farm, in the employ of any person, in connection with
cultivating the soil, or in connection with raising or harvesting any
agricultural or horticultural commodity, including the raising, shearing,
feeding, caring for, training, and management of livestock, bees, poultry,
and furbearing animals and wildlife.
(B) In the employ of the owner or tenant or other operator of a farm,
in connection with the operating, management, conservation,
improvement, or maintenance of such farm and its tools and equipment, or
in salvaging timber or clearing land of brush and other debris left by a
hurricane, if the major part of such service is performed on a farm.
(C) In connection with the production or harvesting of any
commodity defined as an agricultural commodity in section (15)(g) of the
agricultural marketing act, as amended, 46 Stat. 1500, sec. 3; 12 U.S.C. §
1141j, or in connection with the ginning of cotton, or in connection with
the operation or maintenance of ditches, canals, reservoirs or waterways,
not owned or operated for profit, used exclusively for supplying and
storing water for farming purposes.
(D) (i) In the employ of the operator of a farm in handling, planting,
drying, packing, packaging, processing, freezing, grading, storing, or
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delivering to storage or to market or to a carrier for transportation to
market, in its unmanufactured state, any agricultural or horticultural
commodity; but only if such operator produced more than ½ of the
commodity with respect to which such service is performed;
(ii) in the employ of a group of operators of farms, or a cooperative
organization of which such operators are members, in the performance of
services described in paragraph (i), but only if such operators produced
more than ½ of the commodity with respect to which such service is
performed;
(iii) the provisions of paragraphs (i) and (ii) shall not be deemed to be
applicable with respect to services performed in connection with
commercial canning or commercial freezing or in connection with any
agricultural or horticultural commodity after its delivery to a terminal
market for distribution for consumption.
(E) On a farm operated for profit if such service is not in the course
of the employer's trade or business.
(2) "Agricultural labor" does not include services performed prior to
January 1, 1980, by an individual who is an alien admitted to the United
States to perform service in agricultural labor pursuant to sections 214(c)
and 101(a)(15)(H) of the federal immigration and nationality act.
(3) As used in this subsection, the term "farm" includes stock, dairy,
poultry, fruit, fur-bearing animal, and truck farms, plantations, ranches,
nurseries, ranges, greenhouses, or other similar structures used primarily
for the raising of agricultural or horticultural commodities, and orchards.
(4) For the purpose of this section, if an employing unit does not
maintain sufficient records to separate agricultural labor from other
employment, all services performed during any pay period by an
individual for the person employing such individual shall be deemed to be
agricultural labor if services performed during ½ or more of such pay
period constitute agricultural labor; but if the services performed during
more than ½ of any such pay period by an individual for the person
employing such individual do not constitute agricultural labor, then none
of the services of such individual for such period shall be deemed to be
agricultural labor. As used in this subsection, the term "pay period" means
a period of not more than 31 consecutive days for which a payment of
remuneration is ordinarily made to the individual by the person employing
such individual.
(x) "Reimbursing employer" means any employer who makes
payments in lieu of contributions to the employment security fund as
provided in K.S.A. 44-710(e), and amendments thereto.
(y) "Contributing employer" means any employer other than a
reimbursing employer or rated governmental employer.
(z) "Wage combining plan" means a uniform national arrangement
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approved by the United States secretary of labor in consultation with the
state unemployment compensation agencies and in which this state shall
participate, whereby wages earned in one or more states are transferred to
another state, called the "paying state," and combined with wages in the
paying state, if any, for the payment of benefits under the laws of the
paying state and as provided by an arrangement so approved by the United
States secretary of labor.
(aa) "Domestic service" means any services for a person in the
operation and maintenance of a private household, local college club or
local chapter of a college fraternity or sorority, as distinguished from
service as an employee in the pursuit of an employer's trade, occupation,
profession, enterprise or vocation.
(bb) "Rated governmental employer" means any governmental entity
that elects to make payments as provided by K.S.A. 44-710d, and
amendments thereto.
(cc) "Benefit cost payments" means payments made to the
employment security fund by a governmental entity electing to become a
rated governmental employer.
(dd) "Successor employer" means any employer, as described in
subsection (h), that acquires or in any manner succeeds to: (1)
Substantially all of the employing enterprises, organization, trade or
business of another employer; or (2) substantially all the assets of another
employer.
(ee) "Predecessor employer" means an employer, as described in
subsection (h), who has previously operated a business or portion of a
business with employment to which another employer has succeeded.
(ff) "Lessor employing unit" means any independently established
business entity that engages in the business of providing leased employees
to a client lessee.
(gg) "Client lessee" means any individual, organization, partnership,
corporation or other legal entity leasing employees from a lessor
employing unit.
(hh) "Qualifying injury" means a personal injury by accident arising
out of and in the course of employment within the coverage of the Kansas
workers compensation act, K.S.A. 44-501 et seq., and amendments
thereto.
(ii) "Temporary unemployment," "temporarily unemployed" or
"temporary layoff" means that the individual has been laid off due to lack
of work by an employing unit for which the individual has most recently
worked full time and for which the individual reasonably expects to
resume full-time work at a future date within eight weeks , and that the
individual's employment with the employing unit, although temporarily
suspended, has not been terminated. Except as otherwise provided by
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K.S.A. 44-775(a)(3), and amendments thereto, "temporary unemployment"
shall not exceed eight consecutive weeks. An extension of additional
weeks of temporary unemployment at the request of an employer for an
individual may be granted by the secretary as provided by K.S.A. 44-
775(a)(3), and amendments thereto. The maximum amount of temporary
unemployment for an individual in a benefit year, including any extension
granted by the secretary, shall be as provided by K.S.A. 44-775(a)(3), and
amendments thereto.
(jj) "Statewide average annual wage" or "SAAW" means the quotient,
obtained by dividing gross wages by average monthly covered
employment for the same determination period, rounded to the nearest
cent.
(kk) "Statewide average weekly wage" or "SAWW" means the
quotient, obtained by dividing the statewide average annual wage by 52,
rounded to the nearest cent.
Sec. 2. K.S.A. 2025 Supp. 44-710 is hereby amended to read as
follows: 44-710. (a) Payment. Contributions shall accrue and become
payable by each contributing employer for each calendar year that the
contributing employer is subject to the employment security law with
respect to wages paid for employment. Such contributions shall become
due and be paid by each contributing employer to the secretary for the
employment security fund in accordance with such rules and regulations as
the secretary may adopt and shall not be deducted, in whole or in part,
from the wages of individuals in such employer's employ. In the payment
of any contributions, a fractional part of $.01 shall be disregarded unless it
amounts to $.005 or more, in which case it shall be increased to $.01.
Should contributions for any calendar quarter be less than $5, no payment
shall be required.
(b) Rates and base of contributions. (1) Except as provided in
paragraph (2), each contributing employer shall pay contributions on
wages paid by the contributing employer during each calendar year with
respect to employment as provided in K.S.A. 44-710a, and amendments
thereto.
(2) (A) If the congress of the United States either amends or repeals
the Wagner-Peyser act, the federal unemployment tax act, the federal
social security act, or subtitle C of chapter 23 of the federal internal
revenue code of 1986, or any act or acts supplemental to or in lieu thereof,
or any part or parts of any such law, or if any such law, or any part or parts
thereof, are held invalid with the effect that appropriations of funds by
congress and grants thereof to the state of Kansas for the payment of costs
of administration of the employment security law are no longer available
for such purposes; or (B) if employers in Kansas subject to the payment of
tax under the federal unemployment tax act are granted full credit against
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SB 512 24
such tax for contributions or taxes paid to the secretary of labor, then, and
in either such case, beginning with the year that the unavailability of
federal appropriations and grants for such purpose occurs or that such
change in liability for payment of such federal tax occurs and for each year
thereafter, the rate of contributions of each contributing employer shall be
equal to the total of 0.5% and the rate of contributions as determined for
such contributing employer under K.S.A. 44-710a, and amendments
thereto. The amount of contributions that each contributing employer
becomes liable to pay under this paragraph over the amount of
contributions that such contributing employer would be otherwise liable to
pay shall be credited to the employment security administration fund to be
disbursed and paid out under the same conditions and for the same
purposes as other moneys are authorized to be paid from the employment
security administration fund, except that, if the secretary determines that as
of the first day of January of any year there is an excess in the employment
security administration fund over the amount required to be disbursed
during such year, an amount equal to such excess as determined by the
secretary shall be transferred to the employment security fund.
(c) Charging of benefit payments. (1) The secretary shall maintain a
separate account for each contributing employer, and shall credit the
contributing employer's account with all the contributions paid on the
contributing employer's own behalf. Nothing in the employment security
law shall be construed to grant any employer or individuals in such
employer's service prior claims or rights to the amounts paid by such
employer into the employment security fund either on such employer's
own behalf or on behalf of such individuals. Benefits paid shall be charged
against the accounts of each base period employer in the proportion that
the base period wages paid to an eligible individual by each such employer
bears to the total wages in the base period. Benefits shall be charged to
contributing employers' accounts and rated governmental employers'
accounts upon the basis of benefits paid during each calendar quarter.
(2) (A) Benefits paid in benefit years established by valid new claims
shall not be charged to the account of a contributing employer or rated
governmental employer who is a base period employer if the examiner
finds that claimant was separated from the claimant's most recent
employment with such employer under any of the following conditions: (i)
Discharged for misconduct or gross misconduct connected with the
individual's work; (ii) leaving work voluntarily without good cause
attributable to the claimant's work or the employer; or (iii) discharged from
an employer directly impacted by COVID-19 in accordance with the
families first coronavirus response act, public law 116-127.
(B) Where base period wage credits of a contributing employer or
rated governmental employer represent part-time employment and the
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SB 512 25
claimant continues in that part-time employment with that employer
during the period for which benefits are paid, then that employer's account
shall not be charged with any part of the benefits paid if the employer
provides the secretary with information as required by rules and
regulations. For the purposes of this subparagraph, "part-time
employment" means any employment when an individual works less than
full-time because the individual's services are not required for the
customary, scheduled full-time hours prevailing at the work place or the
individual does not customarily work the regularly scheduled full-time
hours due to personal choice or circumstances.
(C) No contributing employer or rated governmental employer's
account shall be charged with any extended benefits paid in accordance
with the employment security law, except for weeks of unemployment
beginning after December 31, 1978, all contributing governmental
employers and governmental rated employers shall be charged an amount
equal to all extended benefits paid.
(D) No contributing employer or rated governmental employer's
account will be charged for benefits paid a claimant while pursuing an
approved training course as defined in K.S.A. 44-703(s), and amendments
thereto.
(E) No contributing employer or rated governmental employer's
account shall be charged with respect to the benefits paid to any individual
whose base period wages include wages for services not covered by the
employment security law prior to January 1, 1978, to the extent that the
employment security fund is reimbursed for such benefits pursuant to
section 121 of public law 94-566, 90 Stat. 2673.
(F) With respect to weeks of unemployment beginning after
December 31, 1977, wages for insured work shall include wages paid for
previously uncovered services. For the purposes of this subparagraph, the
term "previously uncovered services" means services that were not
covered employment, at any time during the one-year period ending
December 31, 1975, except to the extent that assistance under title II of the
federal emergency jobs and unemployment assistance act of 1974 was paid
on the basis of such services, and that:
(i) Are agricultural labor as defined in K.S.A. 44-703(w), and
amendments thereto, or domestic service as defined in K.S.A. 44-703(aa),
and amendments thereto;
(ii) are services performed by an employee of this state or a political
subdivision thereof, as provided in K.S.A. 44-703(i)(3)(E), and
amendments thereto; or
(iii) are services performed by an employee of a nonprofit educational
institution that is not an institution of higher education.
(G) Contributing employers, rated governmental employers and
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SB 512 26
reimbursing employers shall be held harmless for and shall not be required
to reimburse the state for claims or benefits paid that have been reported
by the employer to the secretary and determined by the secretary as
fraudulent or as an improper payment, unless the secretary determines the
claims are not fraudulent or improper as provided by K.S.A. 44-710b(b)(2)
(A), and amendments thereto. The time limitation for disputing a claim or
an appeal of a claim as provided by this section, or by any other provision
of the employment security law, shall not apply to identifications of fraud
reported to the secretary for claims or benefits paid during the period
beginning on March 15, 2020, through December 31, 2022. Contributing
employers, rated governmental employers and reimbursing employers
shall be refunded or credited, in the discretion of the employer, as provided
by K.S.A. 44-710b, and amendments thereto, for any claims or benefits
paid that have been reported as fraudulent.
(3) An employer's account shall not be relieved of charges relating to
a payment that was made erroneously if the secretary determines that:
(A) The erroneous payment was made because the employer, or the
agent of the employer, was at fault for failing to respond timely or
adequately to a written request from the secretary for information relating
to the claim for unemployment compensation; and
(B) the employer or agent has established a pattern of failing to
respond timely or adequately to requests for information.
(C) For purposes of this paragraph:
(i) "Erroneous payment" means a payment that but for the failure by
the employer or the employer's agent with respect to the claim for
unemployment compensation, would not have been made; and
(ii) "pattern of failure" means repeated documented failure on the part
of the employer or the agent of the employer to respond, taking into
consideration the number of instances of failure in relation to the total
volume of requests. An employer or employer's agent failing to respond as
described in subparagraph (A) shall not be determined to have engaged in
a "pattern of failure" if the number of such failures during the year prior to
such request is fewer than two, or less than 2%, of such requests,
whichever is greater.
(D) Determinations of the secretary prohibiting the relief of charges
pursuant to this section shall be subject to appeal or protest as other
determinations of the agency with respect to the charging of employer
accounts.
(4) The examiner shall notify any base period employer whose
account will be charged with benefits paid following the filing of a valid
new claim and a determination by the examiner based on all information
relating to the claim contained in the records of the division of
employment security. Such notice shall become final and benefits charged
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to the base period employer's account in accordance with the claim unless
within 10 calendar days from the date the notice was sent, the base period
employer requests in writing that the examiner reconsider the
determination and furnishes any required information in accordance with
the secretary's rules and regulations. In a similar manner, a notice of an
additional claim followed by the first payment of benefits with respect to
the benefit year, filed by an individual during a benefit year after a period
in such year during which such individual was employed, shall be given to
any base period employer of the individual who has requested such a
notice within 10 calendar days from the date the notice of the valid new
claim was sent to such base period employer. For purposes of this
paragraph, if the required information is not submitted or postmarked
within a response time limit of 10 days after the base period employer
notice was sent, the base period employer shall be deemed to have waived
its standing as a party to the proceedings arising from the claim and shall
be barred from protesting any subsequent decisions about the claim by the
secretary, a referee, the board of review or any court, except that the base
period employer's response time limit may be waived or extended by the
examiner or upon appeal, if timely response was impossible due to
excusable neglect. The examiner shall notify the employer of the
reconsidered determination, which shall be subject to appeal or further
reconsideration, in accordance with the provisions of K.S.A. 44-709, and
amendments thereto.
(5) Time, computation and extension. In computing the period of time
for a base period employer response or appeals under this section from the
examiner's or the special examiner's determination or from the referee's
decision, the day of the act, event or default from which the designated
period of time begins to run shall not be included. The last day of the
period shall be included unless it is a Saturday, Sunday or legal holiday, in
which event the period runs until the end of the next day that is not a
Saturday, Sunday or legal holiday.
(d) Pooled fund. All contributions and payments in lieu of
contributions and benefit cost payments to the employment security fund
shall be pooled and available to pay benefits to any individual entitled
thereto under the employment security law, regardless of the source of
such contributions or payments in lieu of contributions or benefit cost
payments.
(e) Election to become reimbursing employer; payment in lieu of
contributions. (1) Any governmental entity, Indian tribes or tribal units,
(subdivisions, subsidiaries or business enterprises wholly owned by such
Indian tribes), for which services are performed as described in K.S.A. 44-
703(i)(3)(E), and amendments thereto, or any nonprofit organization or
group of nonprofit organizations described in section 501(c)(3) of the
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federal internal revenue code of 1986 that is exempt from income tax
under section 501(a) of such code, that becomes subject to the
employment security law may elect to become a reimbursing employer
under this paragraph and agree to pay the secretary for the employment
security fund an amount equal to the amount of regular benefits and ½ of
the extended benefits paid that are attributable to service in the employ of
such reimbursing employer, except that each reimbursing governmental
employer, Indian tribes or tribal units shall pay an amount equal to the
amount of regular benefits and extended benefits paid for weeks of
unemployment beginning after December 31, 1978, for governmental
employers and December 21, 2000, for Indian tribes or tribal units to
individuals for weeks of unemployment that begin during the effective
period of such election.
(A) Any employer identified in this paragraph may elect to become a
reimbursing employer for a period encompassing not less than four
complete calendar years if such employer files with the secretary a written
notice of such election within the 30-day period immediately following
January 1 of any calendar year or within the 30-day period immediately
following the date when a determination of subjectivity to the employment
security law is issued, whichever occurs later.
(B) Any employer that makes an election to become a reimbursing
employer in accordance with subparagraph (A) will continue to be liable
for payments in lieu of contributions until such employer files with the
secretary a written notice terminating its election not later than 30 days
prior to the beginning of the calendar year for which such termination shall
first be effective.
(C) Any employer identified in this paragraph that has remained a
contributing employer and has been paying contributions under the
employment security law for a period subsequent to January 1, 1972, may
change to a reimbursing employer by filing with the secretary not later
than 30 days prior to the beginning of any calendar year a written notice of
election to become a reimbursing employer. Such election shall not be
terminable by the employer for four complete calendar years.
(D) The secretary may for good cause extend the period within which
a notice of election, or a notice of termination, must be filed and may
permit an election to be retroactive but not any earlier than with respect to
benefits paid after January 1 of the year such election is received.
(E) The secretary, in accordance with such rules and regulations as
the secretary may adopt, shall notify each employer identified in this
paragraph of any determination that the secretary may make of its status as
an employer and of the effective date of any election that it makes to
become a reimbursing employer and of any termination of such election.
Such determinations shall be subject to reconsideration, appeal and review
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in accordance with the provisions of K.S.A. 44-710b, and amendments
thereto.
(2) Reimbursement reports and payments. Payments in lieu of
contributions shall be made in accordance with the provisions of
subparagraph (A) by all reimbursing employers except the state of Kansas.
Each reimbursing employer shall report total wages paid during each
calendar quarter by filing quarterly wage reports with the secretary that
shall be filed by the last day of the month following the close of each
calendar quarter. Wage reports are deemed filed as of the date they are
placed in the United States mail.
(A) At the end of each calendar quarter, or at the end of any other
period as determined by the secretary, the secretary shall bill each
reimbursing employer, except the state of Kansas: (i) An amount to be paid
that is equal to the full amount of regular benefits plus ½ of the amount of
extended benefits paid during such quarter or other prescribed period that
is attributable to service in the employ of such reimbursing employer; and
(ii) for weeks of unemployment beginning after December 31, 1978, each
reimbursing governmental employer and December 21, 2000, for Indian
tribes or tribal units shall be certified an amount to be paid that is equal to
the full amount of regular benefits and extended benefits paid during such
quarter or other prescribed period that is attributable to service in the
employ of such reimbursing governmental employer.
(B) Payment of any bill rendered under subparagraph (A) shall be
made not later than 30 days after such bill was mailed to the last known
address of the reimbursing employer, or otherwise was delivered to such
reimbursing employer, unless there has been an application for review and
redetermination in accordance with subparagraph (D).
(C) Payments made by any reimbursing employer under the
provisions of this paragraph shall not be deducted or deductible, in whole
or in part, from the remuneration of individuals in the employ of such
employer.
(D) The amount due specified in any bill from the secretary shall be
conclusive on the reimbursing employer, unless, not later than 15 days
after the bill was mailed to the last known address of such employer, or
was otherwise delivered to such employer, the reimbursing employer files
an application for redetermination in accordance with K.S.A. 44-710b, and
amendments thereto.
(E) (i) Past due payments of amounts certified by the secretary under
this section shall be subject to the same interest, penalties and actions
required by K.S.A. 44-717, and amendments thereto.
(ii) If any nonprofit organization or group of nonprofit organizations
described in section 501(c)(3) of the federal internal revenue code of 1986
or governmental reimbursing employer is delinquent in making payments
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SB 512 30
of amounts certified by the secretary under this section, the secretary may
terminate such employer's election to make payments in lieu of
contributions as of the beginning of the next calendar year and such
termination shall be effective for such next calendar year and the calendar
year thereafter so that the termination is effective for two complete
calendar years.
(iii) Failure of an Indian tribe or tribal unit to make required
payments, including assessment of interest and penalty within 90 days of
receipt of a bill shall cause the Indian tribe to lose the option to make
payments in lieu of contributions as described pursuant to paragraph (e)(1)
for the following tax year unless payment in full is received before
contribution rates for the next tax year are calculated. Any Indian tribe that
loses the option to make payments in lieu of contributions due to late
payment or nonpayment, as described in this paragraph, shall have such
option reinstated, if after a period of one year, all contributions have been
made on time and no contributions, payments in lieu of contributions for
benefits paid, penalties or interest remain outstanding.
(F) Failure of the Indian tribe or any tribal unit thereof to make
required payments, including assessments of interest and penalties, after
all collection activities deemed necessary by the secretary have been
exhausted, will cause services performed by such tribe to not be treated as
employment for purposes of K.S.A. 44-703(i)(3)(E), and amendments
thereto. If an Indian tribe fails to make payments required under this
section, including assessments of interest and penalties, within 90 days of
a final notice of delinquency, the secretary shall immediately notify the
United States internal revenue service and the United States department of
labor. The secretary may determine that any Indian tribe that loses
coverage pursuant to this paragraph may have services performed on
behalf of such tribe again deemed employment if all contributions,
payments in lieu of contributions, penalties and interest have been paid.
(G) In the discretion of the secretary, any employer who elects to
become liable for payments in lieu of contributions and any nonprofit
organization or group of nonprofit organizations described in section
501(c)(3) of the federal internal revenue code of 1986 or governmental
reimbursing employer or Indian tribe or tribal unit who is delinquent in
filing reports or in making payments of amounts certified by the secretary
under this section shall be required within 60 days after the effective date
of such election, in the case of an eligible employer so electing, or after the
date of notification to the delinquent employer under this subparagraph, in
the case of a delinquent employer, to execute and file with the secretary a
surety bond, except that the employer may elect, in lieu of a surety bond,
to deposit with the secretary money or securities as approved by the
secretary or to purchase and deliver to an escrow agent a certificate of
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deposit to guarantee payment. The amount of the bond, deposit or escrow
agreement required shall not exceed 5.4% of the organization's taxable
wages paid for employment by the eligible employer during the four
calendar quarters immediately preceding the effective date of the election
or the date of notification, in the case of a delinquent employer. If the
employer did not pay wages in each of such four calendar quarters, the
amount of the bond or deposit shall be as determined by the secretary.
Upon the failure of an employer to comply with the provisions of this
subparagraph within the time limits imposed or to maintain the required
bond or deposit, the secretary may terminate the election of such eligible
employer or delinquent employer, as the case may be, to make payments in
lieu of contributions, and such termination shall be effective for the current
and next calendar year.
(H) The state of Kansas shall make reimbursement payments
quarterly at a fiscal year rate that shall be based upon: (i) The available
balance in the state's reimbursing account as of December 31 of each
calendar year; (ii) the historical unemployment experience of all covered
state agencies during prior years; (iii) the estimate of total covered wages
to be paid during the ensuing calendar year; (iv) the applicable fiscal year
rate of the claims processing and auditing fee under K.S.A. 75-3798, and
amendments thereto; and (v) actuarial and other information furnished to
the secretary by the secretary of administration. In accordance with K.S.A.
75-3798, and amendments thereto, the claims processing and auditing fees
charged to state agencies shall be deducted from the amounts collected for
the reimbursement payments under this paragraph prior to making the
quarterly reimbursement payments for the state of Kansas. The fiscal year
rate shall be expressed as a percentage of covered total wages and shall be
the same for all covered state agencies. The fiscal year rate for each fiscal
year will be certified in writing by the secretary to the secretary of
administration on July 15 of each year and such certified rate shall become
effective on the July 1 immediately following the date of certification. A
detailed listing of benefit charges applicable to the state's reimbursing
account shall be furnished quarterly by the secretary to the secretary of
administration and the total amount of charges deducted from previous
reimbursing payments made by the state. On January 1 of each year, if it is
determined that benefit charges exceed the amount of prior reimbursing
payments, an upward adjustment shall be made therefor in the fiscal year
rate to be certified on the ensuing July 15. If total payments exceed benefit
charges, all or part of the excess may be refunded, at the discretion of the
secretary, from the fund or retained in the fund as part of the payments that
may be required for the next fiscal year.
(I) No contributing employer of the industries of ready-mixed
concrete production and distribution or the construction of highways or
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SB 512 32
elevated highways, streets, roads, airport runways, public sidewalks or
bridges shall be charged for any temporary layoffs.
(3) Allocation of benefit costs. The reimbursing account of each
reimbursing employer shall be charged the full amount of regular benefits
and ½ of the amount of extended benefits paid except that each
reimbursing governmental employer's account shall be charged the full
amount of regular benefits and extended benefits paid for weeks of
unemployment beginning after December 31, 1978, to individuals whose
entire base period wage credits are from such employer. When benefits
received by an individual are based upon base period wage credits from
more than one employer then the reimbursing employer's or reimbursing
governmental employer's account shall be charged in the same ratio as
base period wage credits from such employer bear to the individual's total
base period wage credits. Notwithstanding any other provision of the
employment security law, no reimbursing employer's or reimbursing
governmental employer's account shall be charged for payments of
extended benefits that are wholly reimbursed to the state by the federal
government.
(A) Proportionate allocation when fewer than all reimbursing base
period employers are liable. If benefits paid to an individual are based on
wages paid by one or more reimbursing employers and on wages paid by
one or more contributing employers or rated governmental employers, the
amount of benefits payable by each reimbursing employer shall be an
amount that bears the same ratio to the total benefits paid to the individual
as the total base period wages paid to the individual by such employer
bears to the total base period wages paid to the individual by all of such
individual's base period employers.
(B) Proportionate allocation when all base period employers are
reimbursing employers. If benefits paid to an individual are based on
wages paid by two or more reimbursing employers, the amount of benefits
payable by each such employer shall be an amount that bears the same
ratio to the total benefits paid to the individual as the total base period
wages paid to the individual by such employer bear to the total base period
wages paid to the individual by all of such individual's base period
employers.
(4) Group accounts. Two or more reimbursing employers may file a
joint application to the secretary for the establishment of a group account
for the purpose of sharing the cost of benefits paid that are attributable to
service in the employment of such reimbursing employers. Each such
application shall identify and authorize a group representative to act as the
group's agent for the purposes of this paragraph. Upon approval of the
application, the secretary shall establish a group account for such
employers effective as of the beginning of the calendar quarter in which
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SB 512 33
the secretary receives the application and shall notify the group's
representative of the effective date of the account. Such account shall
remain in effect for not less than four years and thereafter such account
shall remain in effect until terminated at the discretion of the secretary or
upon application by the group. Upon establishment of the account, each
member of the group shall be liable for payments in lieu of contributions
with respect to each calendar quarter in the amount that bears the same
ratio to the total benefits paid in such quarter that are attributable to service
performed in the employ of all members of the group as the total wages
paid for service in employment by such member in such quarter bear to the
total wages paid during such quarter for service performed in the employ
of all members of the group. The secretary shall adopt such rules and
regulations as the secretary deems necessary with respect to applications
for establishment, maintenance and termination of group accounts that are
authorized by this paragraph, for addition of new members to, and
withdrawal of active members from such accounts, and for the
determination of the amounts that are payable under this paragraph by
members of the group and the time and manner of such payments.
Sec. 3. K.S.A. 2025 Supp. 44-710a is hereby amended to read as
follows: 44-710a. (a) Classification of employers by the secretary. The
term "employer" as used in this section refers to contributing employers.
The secretary shall classify employers in accordance with their actual
experience in the payment of contributions on their own behalf and with
respect to benefits charged against their accounts with a view of fixing
such contribution rates as will reflect such experience. If, as of the date
such classification of employers is made, the secretary finds that any
employing unit has failed to file any report required in connection
therewith, or has filed a report which the secretary finds incorrect or
insufficient, the secretary shall make an estimate of the information
required from such employing unit on the basis of the best evidence
reasonably available to the secretary at the time, and notify the employing
unit thereof by mail addressed to its last known address. Unless such
employing unit shall file the report or a corrected or sufficient report as the
case may be, within 15 days after the mailing of such notice, the secretary
shall compute such employing unit's rate of contributions on the basis of
such estimates, and the rate as so determined shall be subject to increase
but not to reduction on the basis of subsequently ascertained information.
The secretary shall determine the contribution rate of each employer in
accordance with the requirements of this section.
(1) New employers. (A) No employer will be eligible for a rate
computation until there have been 24 consecutive calendar months
immediately preceding the computation date throughout which benefits
could have been charged against such employer's account.
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(B) (i) (a) Each employer who is not eligible for a rate contribution
shall pay contributions equal to 1.75% of wages paid during each calendar
year with regard to employment, except such employers engaged in the
construction industry shall pay a rate equal to 5.55%.
(b) (1) An employer who was not doing business in Kansas prior to
July 1, 2014, shall be eligible for either the new employer rate under
subsection (a)(1)(B)(i)(a) or the rate associated with the reserve ratio such
employer experienced in the state which such employer was formerly
located, but in no event less than 1% if such:
(A) Employer has been in operation in the other state or states for at
least the three years immediately preceding the date such employer
becomes a liable employer in Kansas;
(B) employer provides the authenticated account history from
information accumulated from operations of such employer in the other
state or all the other states necessary to compute a current Kansas rate; and
(C) employer's business operations established in Kansas are of the
same nature, as defined by the North American industrial classification
system, as conducted by such employer in the other state or states.
(2) The election authorized in subsection (a)(1)(B)(i)(b) of this
section must be made in writing within 30 days after notice of Kansas
liability. A rate in accordance with subsection (a)(1)(B)(i)(a) will be
assigned unless a timely election has been made.
(3) If the election is made timely, the employer's account will receive
the rate elected for the remainder of that rate year. The rate assigned for
the next and subsequent years will be determined by the condition of the
account on the computation date.
(ii) For purposes of this subsection (a), employers shall be classified
by industrial activity in accordance with standard procedures as set forth in
rules and regulations adopted by the secretary. Employers engaged in more
than one type of industrial activity shall be classified by principal activity.
All rates assigned will remain in effect for a complete calendar year. If the
sale or acquisition of a new establishment would require reclassification of
the employer to a different industry sector, the employer would be
promptly notified, and the contribution rate applicable to the new industry
sector would become effective the following January 1.
(C) "Computation date" means June 30 of each calendar year with
respect to rates of contribution applicable to the calendar year beginning
with the following January 1. In arriving at contribution rates for each
calendar year, contributions paid on or before July 31 following the
computation date for employment occurring on or prior to the computation
date shall be considered for each contributing employer who has been
subject to this act for a sufficient period of time to have such employer's
rate computed under this subsection (a).
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(2) Eligible employers. (A) A reserve ratio shall be computed for each
eligible employer by the following method: Total benefits charged to the
employer's account for all past years shall be deducted from all
contributions paid by such employer for all such years. The balance,
positive or negative, shall be divided by the employer's average annual
payroll, and the result shall constitute the employer reserve ratio.
(B) (i) Negative account balance employers, as defined in subsection
(d), shall pay contributions at the rate referenced in subsection (a)(4)(C).
(ii) (a) Beginning on July 1, 2024, and annually thereafter, active
negative rated employers shall be eligible for a calculated negative debt
write-off and forgiveness amount as determined pursuant to this subclause.
If on any computation date an employer's account registers a negative
reserve ratio less than or equal to -7.150%, a portion of benefit charges
shall be conditionally forgiven and removed from the employer's account
in order to bring the employer's account to a reserve ratio of -7.150%, and
the employer shall be assigned to rate group N11, as set forth in subsection
(a)(4)(C)(ii) for the next three calendar years.
(b) Negative rated employers affected by the conditional write-off
provision pursuant to subclause (a) shall have the option to avoid a
negative debt write-off and assignment to rate group N11 for the next three
calendar years by submitting a voluntary contribution pursuant to
subsection (c) equal to or greater than the amount necessary to establish
their account reserve ratio to an amount equal to or greater than -7.149%
for the next calendar year.
(C) Eligible employers, other than negative account balance
employers, who do not meet the average annual payroll requirements as
stated in K.S.A. 44-703(a)(2), and amendments thereto, will be issued the
maximum rate indicated by the maximum rate group of standard rate
schedule—standard schedule G in subsection (a)(4)(C)(ii) until such
employer establishes a new period of 24 consecutive calendar months
immediately preceding the computation date throughout which benefits
could have been charged against such employer's account by resuming the
payment of wages. Contribution rates effective for each calendar year
thereafter shall be determined as prescribed below.
(3) Entering and expanding employer. (A) The secretary, as a method
of providing for a reduced rate of contributions to an employer shall verify
the qualifications in this statute that bear a direct relation to unemployment
risk for that employer.
(B) If, as of the computation date, an eligible, positive balance
employer's reserve ratio is significantly affected due to an increase in the
employer's taxable payroll of at least 100% and such increase is
attributable to a growth in employment, and not to a change in the taxable
wage base from the previous year, the secretary shall assign a reduced rate
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SB 512 36
of contributions for a period of three years.
(i) Such reduced rate of contributions shall be the new employer rate
described in subsection (a)(1)(B)(i)(a), or a rate based on the employer's
demonstrated risk as reflected in the employer's reserve fund ratio history.
(ii) To be eligible for such reduced rate, the employer must maintain a
positive account balance throughout the reduced-rate period and must have
an increase in account balance for each year.
(4) (A) Contribution schedules. For each rate year, the contribution
schedule in effect shall be determined by the applicable fund control table
and rate schedule table of subsection (a)(4)(C).
(B) Published calculated maximum annual tax amounts per
employee. The secretary shall publish corresponding contribution amount
tables showing the calculated maximum annual cost to contributing rated
employers per employee for each rate group. Such contribution amount
tables shall be published on a publicly accessible website maintained by
the secretary.
(C) Effective rates. (i) Employer contribution rates to be effective for
each calendar year shall be determined by the applicable rate schedule in
clause (ii) and the fund control table for the rate year as specified
contained in this clause. The average high cost multiple of the trust fund as
of the computation date shall determine the contribution schedule in effect
for the next rate year. For purposes of subsection (a)(4)(C)(i), the average
high cost multiple is the reserve fund ratio divided by the average high
benefit cost rate. The average high benefit cost rate shall be determined by
averaging the three highest benefit cost rates over the last 20 years from
the preceding fiscal year which ended June 30. The high benefit cost rate is
defined by dividing total benefits paid in the fiscal year by total payrolls
for covered employers in the fiscal year. The reserve fund ratio shall be
determined by dividing total assets in the employment security fund
provided for in K.S.A. 44-712(a), and amendments thereto, excluding all
moneys credited to the account of this state pursuant to section 903 of the
federal social security act, as amended, that have been appropriated by the
legislature, whether or not withdrawn from the trust fund, and excluding
contributions not yet paid on July 31, by total payrolls for contributing
employers for the preceding fiscal year that ended on June 30.
Fund Control Table A
For Rate Year 2025 and Ensuing Calendar Years
Proportional
KS SUTA Lower Upper Solvency/Credit Solvency/Credit
Tax Rate AHCM AHCM Adjustment Adjustment
Schedules Threshold Threshold
M -1,000.00000 -0.00001 2.00% 0.05128%
L 0.00000 0.24999 1.70% 0.04359%
Solvency K 0.25000 0.44999 1.40% 0.03590%
Schedules J 0.45000 0.59999 1.10% 0.02821%
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(H-M) I 0.60000 0.69999 0.80% 0.02051%
H 0.70000 0.74999 0.50% 0.01282%
Standard
Schedule G 0.75000 1.24999 0.00% 0.00000%
(G)
F 1.25000 1.29999 -0.50% -0.01282%
Credit E 1.30000 1.39999 -0.80% -0.02051%
Schedules D 1.40000 1.54999 -1.10% -0.02821%
(A-F) C 1.55000 1.74999 -1.40% -0.03590%
B 1.75000 1.99999 -1.70% -0.04359%
A 2.00000 1,000.00000 -2.00% -0.05128%
(ii) Eligible employers shall be classified by rate group according to
the standard rate schedule - standard rate schedule G in this clause, for that
rate year. For rate year 2025 and ensuing calendar years, the rate pursuant
to standard rate schedule G, solvency schedules H through M or credit
schedules A through F shall apply to contributing employers.
STANDARD RATE SCHEDULE -
STANDARD RATE SCHEDULE G
RateLower ReserveUpper Reserve Standard
Group Ratio Limit Ratio Limit Rate
0 100.000 1,000,000.000 0.00%
1 18.590 99.999 0.05%
2 17.875 18.589 0.10%
3 17.160 17.874 0.15%
4 16.445 17.159 0.25%
5 15.730 16.444 0.35%
6 15.015 15.729 0.45%
7 14.300 15.014 0.55%
8 13.585 14.299 0.70%
9 12.870 13.584 0.85%
10 12.155 12.869 1.00%
11 11.440 12.154 1.15%
12 10.725 11.439 1.35%
13 10.010 10.724 1.55%
14 9.295 10.009 1.75%
15 8.580 9.294 1.95%
16 7.865 8.579 2.20%
17 7.150 7.864 2.45%
18 6.435 7.149 2.70%
19 5.720 6.434 2.95%
20 5.005 5.719 3.25%
21 4.290 5.004 3.55%
22 3.575 4.289 3.85%
23 2.860 3.574 4.15%
24 2.145 2.859 4.50%
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25 1.430 2.144 4.85%
26 0.715 1.429 5.20%
27 0.000 0.714 5.55%
N1 -0.714 -0.001 5.85%
N2 -1.429 -0.715 6.15%
N3 -2.144 -1.430 6.45%
N4 -2.859 -2.145 6.75%
N5 -3.574 -2.860 7.00%
N6 -4.289 -3.575 7.25%
N7 -5.004 -4.290 7.50%
N8 -5.719 -5.005 7.75%
N9 -6.434 -5.720 7.95%
N10 -7.149 -6.435 8.15%
N11 -1,000,000.000 -7.150 8.35%
SOLVENCY RATE SCHEDULES (H-M)
Rate
Group M L K J I H
0 0.05% 0.04% 0.04% 0.03% 0.02% 0.01%
1 0.15% 0.14% 0.12% 0.11% 0.09% 0.08%
2 0.25% 0.23% 0.21% 0.18% 0.16% 0.14%
3 0.36% 0.32% 0.29% 0.26% 0.23% 0.20%
4 0.51% 0.47% 0.43% 0.39% 0.35% 0.31%
5 0.66% 0.61% 0.57% 0.52% 0.47% 0.43%
6 0.81% 0.76% 0.70% 0.65% 0.59% 0.54%
7 0.96% 0.90% 0.84% 0.78% 0.71% 0.65%
8 1.16% 1.09% 1.02% 0.95% 0.88% 0.82%
9 1.36% 1.29% 1.21% 1.13% 1.06% 0.98%
10 1.56% 1.48% 1.39% 1.31% 1.23% 1.14%
11 1.77% 1.67% 1.58% 1.49% 1.40% 1.30%
12 2.02% 1.92% 1.82% 1.72% 1.62% 1.52%
13 2.27% 2.16% 2.05% 1.94% 1.84% 1.73%
14 2.52% 2.40% 2.29% 2.17% 2.06% 1.94%
15 2.77% 2.65% 2.52% 2.40% 2.28% 2.16%
16 3.07% 2.94% 2.81% 2.68% 2.55% 2.42%
17 3.37% 3.23% 3.10% 2.96% 2.82% 2.68%
18 3.67% 3.53% 3.38% 3.24% 3.09% 2.94%
19 3.98% 3.82% 3.67% 3.51% 3.36% 3.21%
20 4.33% 4.17% 4.00% 3.84% 3.68% 3.52%
21 4.68% 4.51% 4.34% 4.17% 4.00% 3.83%
22 5.03% 4.85% 4.68% 4.50% 4.32% 4.14%
23 5.38% 5.20% 5.01% 4.83% 4.64% 4.46%
24 5.78% 5.59% 5.40% 5.21% 5.01% 4.82%
25 6.18% 5.98% 5.78% 5.58% 5.38% 5.18%
26 6.58% 6.38% 6.17% 5.96% 5.75% 5.55%
27 6.99% 6.77% 6.56% 6.34% 6.12% 5.91%
N1 7.34% 7.11% 6.89% 6.67% 6.44% 6.22%
N2 7.69% 7.46% 7.23% 7.00% 6.77% 6.53%
N3 8.04% 7.80% 7.56% 7.32% 7.09% 6.85%
N4 8.39% 8.14% 7.90% 7.65% 7.41% 7.16%
N5 8.69% 8.44% 8.18% 7.93% 7.68% 7.42%
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N6 8.99% 8.73% 8.47% 8.21% 7.95% 7.69%
N7 9.29% 9.03% 8.76% 8.49% 8.22% 7.95%
N8 9.60% 9.32% 9.04% 8.77% 8.49% 8.21%
N9 9.85% 9.56% 9.28% 8.99% 8.71% 8.42%
N10 10.10% 9.81% 9.51% 9.22% 8.93% 8.64%
N11 10.35% 10.05% 9.75% 9.45% 9.15% 8.85%
CREDIT RATE SCHEDULES (A-F)
Rate
Group F E D C B A
0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
1 0.02% 0.01% 0.00% 0.00% 0.00% 0.00%
2 0.06% 0.04% 0.02% 0.00% 0.00% 0.00%
3 0.10% 0.07% 0.04% 0.01% 0.00% 0.00%
4 0.19% 0.15% 0.11% 0.07% 0.03% 0.00%
5 0.27% 0.23% 0.18% 0.13% 0.09% 0.04%
6 0.36% 0.31% 0.25% 0.20% 0.14% 0.09%
7 0.45% 0.39% 0.32% 0.26% 0.20% 0.14%
8 0.58% 0.52% 0.45% 0.38% 0.31% 0.24%
9 0.72% 0.64% 0.57% 0.49% 0.41% 0.34%
10 0.86% 0.77% 0.69% 0.61% 0.52% 0.44%
11 1.00% 0.90% 0.81% 0.72% 0.63% 0.53%
12 1.18% 1.08% 0.98% 0.88% 0.78% 0.68%
13 1.37% 1.26% 1.16% 1.05% 0.94% 0.83%
14 1.56% 1.44% 1.33% 1.21% 1.10% 0.98%
15 1.74% 1.62% 1.50% 1.38% 1.25% 1.13%
16 1.98% 1.85% 1.72% 1.59% 1.46% 1.33%
17 2.22% 2.08% 1.94% 1.80% 1.67% 1.53%
18 2.46% 2.31% 2.16% 2.02% 1.87% 1.73%
19 2.69% 2.54% 2.39% 2.23% 2.08% 1.92%
20 2.98% 2.82% 2.66% 2.50% 2.33% 2.17%
21 3.27% 3.10% 2.93% 2.76% 2.59% 2.42%
22 3.56% 3.38% 3.20% 3.02% 2.85% 2.67%
23 3.84% 3.66% 3.47% 3.29% 3.10% 2.92%
24 4.18% 3.99% 3.79% 3.60% 3.41% 3.22%
25 4.52% 4.32% 4.12% 3.92% 3.72% 3.52%
26 4.85% 4.65% 4.44% 4.23% 4.02% 3.82%
27 5.19% 4.98% 4.76% 4.54% 4.33% 4.11%
N1 5.48% 5.26% 5.03% 4.81% 4.59% 4.36%
N2 5.77% 5.53% 5.30% 5.07% 4.84% 4.61%
N3 6.05% 5.81% 5.58% 5.34% 5.10% 4.86%
N4 6.34% 6.09% 5.85% 5.60% 5.36% 5.11%
N5 6.58% 6.32% 6.07% 5.82% 5.56% 5.31%
N6 6.81% 6.55% 6.29% 6.03% 5.77% 5.51%
N7 7.05% 6.78% 6.51% 6.24% 5.97% 5.71%
N8 7.29% 7.01% 6.73% 6.46% 6.18% 5.90%
N9 7.48% 7.19% 6.91% 6.62% 6.34% 6.05%
N10 7.66% 7.37% 7.08% 6.79% 6.49% 6.20%
N11 7.85% 7.55% 7.25% 6.95% 6.65% 6.35%
(iii) Not less than 30 days prior to each calendar year, the secretary
shall publish the effective contribution schedules for the previous four rate
years and ensuing rate year on a publicly accessible website maintained by
the secretary.
(b) Successor classification. (1) (A) For the purposes of this
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subsection, whenever an employing unit, whether or not it is an
"employing unit" within the meaning of K.S.A. 44-703(g), and
amendments thereto, becomes an employer pursuant to K.S.A. 44-703(h)
(4), and amendments thereto, or is an employer at the time of acquisition
and meets the definition of a "successor employer" as defined by K.S.A.
44-703(dd), and amendments thereto, and thereafter transfers its trade or
business, or any portion thereof, to another employer and, at the time of
the transfer, there is substantially common ownership, management or
control of the two employers, then the unemployment experience
attributable to the transferred trade or business shall be transferred to the
employer to whom such business is so transferred. These experience
factors consist of all contributions paid, benefit experience and annual
payrolls of the predecessor employer. The transfer of some or all of an
employer's workforce to another employer shall be considered a transfer of
trade or business when, as the result of such transfer, the transferring
employer no longer performs trade or business with respect to the
transferred workforce, and such trade or business is performed by the
employer to whom the workforce is transferred.
(B) If, following a transfer of experience under subparagraph (A), the
secretary determines that a substantial purpose of the transfer or business
was to obtain a reduced liability for contributions, then the experience
rating accounts of the employers involved shall be combined into a single
account and a single rate assigned to such account.
(2) A successor employer as defined by K.S.A. 44-703(h)(4) or (dd),
and amendments thereto, may receive the experience rating factors of the
predecessor employer if an application is made to the secretary or the
secretary's designee in writing within 120 days of the date of the transfer.
(3) Whenever an employing unit, whether or not it is an "employing
unit" within the meaning of K.S.A. 44-703(g), and amendments thereto,
acquires or in any manner succeeds to a percentage of an employer's
annual payroll which is less than 100% and intends to continue the
acquired percentage as a going business, the employing unit may acquire
the same percentage of the predecessor's experience factors if: (A) The
predecessor employer and successor employing unit make an application
in writing on the form prescribed by the secretary; (B) the application is
submitted within 120 days of the date of the transfer; (C) the successor
employing unit is or becomes an employer subject to this act immediately
after the transfer; (D) the percentage of the experience rating factors
transferred shall not be thereafter used in computing the contribution rate
for the predecessor employer; and (E) the secretary finds that such transfer
will not tend to defeat or obstruct the object and purposes of this act.
(4) (A) The rate of both employers in a full or partial successorship
under paragraph (1) shall be recalculated and made effective on the first
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SB 512 41
day of the next calendar year following the date of transfer of trade or
business.
(B) If a successor employer is determined to be qualified under
paragraph (2) or (3) to receive the experience rating factors of the
predecessor employer, the rate assigned to the successor employer for the
remainder of the contributions year shall be determined by the following:
(i) If the acquiring employing unit was an employer subject to this act
prior to the date of the transfer, the rate of contribution shall be the same as
the contribution rate of the acquiring employer on the date of the transfer.
(ii) If the acquiring employing unit was not an employer subject to
this act prior to the date of the transfer, the successor employer shall have a
newly computed rate for the remainder of the contribution year which shall
be based on the transferred experience rating factors as they existed on the
most recent computation date immediately preceding the date of
acquisition. These experience rating factors consist of all contributions
paid, benefit experience and annual payrolls.
(5) Whenever an employing unit is not an employer at the time it
acquires the trade or business of an employer, the unemployment
experience factors of the acquired business shall not be transferred to such
employing unit if the secretary finds that such employing unit acquired the
business solely or primarily for the purpose of obtaining a lower rate of
contributions. Instead, such employing unit shall be assigned the
applicable industry rate for a "new employer" as described in subsection
(a)(1). In determining whether the business was acquired solely or
primarily for the purpose of obtaining a lower rate of contributions, the
secretary shall use objective factors which may include the cost of
acquiring the business, whether the employer continued the business
enterprise of the acquired business, how long such business enterprise was
continued, or whether a substantial number of new employees were hired
for performance of duties unrelated to the business activity conducted
prior to acquisition.
(6) Whenever an employer's account has been terminated as provided
in K.S.A. 44-711(d) and (e), and amendments thereto, and the employer
continues with employment to liquidate the business operations, that
employer shall continue to be an "employer" subject to the employment
security law as provided in K.S.A. 44-703(h)(8), and amendments thereto.
The rate of contribution from the date of transfer to the end of the then
current calendar year shall be the same as the contribution rate prior to the
date of the transfer. At the completion of the then current calendar year, the
rate of contribution shall be that of a "new employer" as described in
subsection (a)(1).
(7) No rate computation will be permitted an employing unit
succeeding to the experience of another employing unit pursuant to this
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SB 512 42
section for any period subsequent to such succession except in accordance
with rules and regulations adopted by the secretary. Any such regulations
shall be consistent with federal requirements for additional credit
allowance in section 3303 of the federal internal revenue code of 1986,
and consistent with the provisions of this act.
(c) Voluntary contributions. Notwithstanding any other provision of
the employment security law, any employer may make voluntary payments
for the purpose of reducing or maintaining a reduced rate in addition to the
contributions required under this section. Such voluntary payments may be
made only during the 90-day period immediately following the date of
mailing of experience rating notices for a calendar year. All such voluntary
contribution payments shall be paid prior to the expiration of 120 days
after the beginning of the year for which such rates are effective. The
amount of voluntary contributions shall be credited to the employer's
account as of the next preceding computation date and the employer's rate
shall be computed accordingly. Under no circumstances shall voluntary
payments be refunded in whole or in part.
(d) As used in this section, "negative account balance employer"
means an eligible employer whose total benefits charged to such
employer's account for all past years have exceeded all contributions paid
by such employer for all such years.
(e) The secretary of labor shall annually prepare and submit a
certification as to the solvency and adequacy of the amount credited to the
state of Kansas' account in the federal employment security trust fund to
the governor and the legislative coordinating council. The certification
shall be submitted on or before December 1 of each calendar year and
shall be for the 12-month period ending on June 30 of that calendar year.
In arriving at the certification contributions paid on or before July 31
following the 12-month period ending date of June 30 shall be considered.
(f) On July 1, 2024, the director of accounts and reports shall transfer
all moneys in the employment security interest assessment fund to the
employment security trust fund. On July 1, 2024, all liabilities of the
employment security interest assessment fund are hereby transferred to
and imposed on the state general fund, and the employment security
interest assessment fund is hereby abolished.
Sec. 4. K.S.A. 2025 Supp. 44-775 is hereby amended to read as
follows: 44-775. (a) (1) The secretary of labor and the secretary of
commerce shall jointly establish and implement the my reemployment
plan as provided in this section. For purposes of this section, "my
reemployment plan" means a program jointly established and implemented
by the Kansas department of labor and the Kansas department of
commerce that provides enhanced reemployment services, including
workforce services provided by the department of commerce, to Kansans
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receiving unemployment insurance benefits.
(2) The program shall be required for all claimants except claimants
that are:
(A) In the shared work program;
(B) in the trade adjustment assistance and trade readjustment
assistance program;
(C) on temporary unemployment as defined in K.S.A. 44-703(ii), and
amendments thereto;
(D) currently employed;
(E) current reemployment services and eligibility assessment
participants;
(F) active members in good standing of a placement union; or
(G) claimants that are engaged in a training program.
(3) (A) The following shall apply to any request to the secretary for
an extension of additional weeks of temporary unemployment, as defined
by K.S.A. 44-703(ii), and amendments thereto, if permitted by
subparagraph (C):
(i) The request shall be made in writing by a rated contributing
employer on behalf of an identified individual or individuals;
(ii) the request shall be submitted, with respect to each individual, for
an increment of eight weeks of additional temporary unemployment
allowed for the individual, if permitted by subparagraph (C); and
(iii) the rated contributing employer shall agree to provide the
secretary with reports relating to the temporary unemployment extension
request as the secretary may require.
(B) The secretary may approve one temporary unemployment
extension request for an individual of eight weeks up to the maximum total
number of weeks permitted, if permitted by subparagraph (C), if the
secretary determines that the requesting employer has:
(i) Agreed to provide the secretary with all reports required as
provided by subparagraph (A)(iii);
(ii) filed all reports required to be filed under the employment
security law for all past and current periods; and
(iii) paid all contributions required to be paid under the employment
security law.
(C) (i) Additional temporary unemployment benefits of eight weeks
for an individual in a benefit year may be granted by the secretary if the
requests for additional temporary unemployment are made by a requesting
employer determined by the secretary to be primarily engaged in:
(a) Ready-mixed concrete production and distribution; or
(b) the construction of highways or elevated highways, streets, roads,
airport runways, public sidewalks or bridges.
(ii) The total maximum amount of temporary unemployment for an
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individual in a benefit year, including any extension of additional
temporary unemployment granted by the secretary, shall be limited to 16
weeks.
(4) The secretary of labor shall provide the secretary of commerce
with the names and contact information of claimants that have claimed a
third week of benefits in the current benefit year. The secretary of labor
shall request the claimant to upload or create a complete resume in the
Kansasworks workforce system, and complete a job search plan that
includes a skills assessment component. The secretary of commerce shall
offer and provide, when requested, assistance to the claimants in
developing the documents or plan through collaboration by the secretary
with the Kansasworks workforce system. The secretary of commerce may
require claimants to participate in reemployment services. The claimant
shall have 14 calendar days to respond to the secretary of commerce. The
secretary of commerce shall report any failure to respond by the claimant
to the secretary of labor.
(5)(4) The secretary of labor shall share labor market information and
current available job positions with the secretary of commerce. The
secretary of labor may collaborate with Kansasworks or other state or
federal agencies with job availability information in obtaining or sharing
such information.
(6)(5) The secretary of commerce shall match open job positions with
claimants based on skills, work history and job location that is a
reasonable commute from the claimant's residence and communicate the
match information to the claimant and to the employer. The secretary of
labor and the secretary of commerce shall consider whether the claimant or
a Kansas employer would benefit from the claimant's participation in a
work skills training or retraining program as provided by subsection (b)
and, if so, provide such information to the employer, if applicable, and the
claimant. Claimants who fail to respond within 14 calendar days after
contact by Kansasworks or the department of commerce shall be reported
by the secretary of commerce to the secretary of labor.
(7)(6) The secretary of commerce and the secretary of labor shall
monitor the result of job matches and share information regarding any
claimant who did not attend an interview or did not accept a position that
was a reasonable match for the claimant's work history and skills and was
within a reasonable commute from the claimant's residence. The secretary
of commerce shall contact the claimant and report the contact to the
secretary of labor. The secretary of labor shall consider whether the
claimant has failed to meet work search requirements and if the claimant
should continue to receive benefits.
(b) The secretary of commerce shall refer claimants to a work skills
training or retraining program as appropriate. The secretary of commerce
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shall seek to obtain or utilize any available federal funds for the program,
and to the extent feasible, may make current work skills training and
retraining programs available to claimants. The secretary of labor may
allow claimants to participate in such a program offered by the secretary of
commerce or by another state or federal agency in lieu of requiring the
claimant to meet job search requirements and the requirements of the my
reemployment plan until the number of allowed benefit weeks has expired.
A claimant shall participate in such a program for not less than 25 hours
per week. The secretary of commerce shall monitor those my
reemployment plan claimants participating in training managed by the
workforce centers to ensure compliance.
(c) Claimants who participate in the my reemployment plan or the
work skills training or retraining program shall meet attendance or
progress requirements established by the secretary of commerce to
continue eligibility for unemployment insurance benefits. Non‐compliant
claimants shall be reported by the secretary of commerce to the secretary
of labor. The secretary of labor shall disqualify such claimants from further
benefits within five business days of receiving the report, unless or until
the claimant demonstrates compliance to the secretary of commerce, and
shall communicate the disqualification and the reason for the
disqualification to the claimant. The secretary of commerce shall report to
the secretary of labor when the claimant has reestablished compliance. The
secretary of labor may continue benefits or reinstate a claimant's eligibility
for benefits upon a showing of good cause by the claimant for the failure
to meet attendance or progress requirements or my reemployment plan
participation requirements.
(d) The secretary of labor and the secretary of commerce shall
provide an annual status update and progress report for the my
reemployment plan to the standing committee on commerce, labor and
economic development of the house of representatives and the standing
committee on commerce of the senate during the first month of each
regular legislative session.
(e) This section shall be a part of and supplemental to the
employment security law.
Sec. 5. K.S.A. 2025 Supp. 44-703, 44-710, 44-710a and 44-775 are
hereby repealed.
Sec. 6. This act shall take effect and be in force from and after its
publication in the statute book.
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