44-710a.Same; classification of employers;establishment and assignment of annual rates; surcharge on negative accounts;rate reductions authorized, conditions; successor classifications;voluntary contributions; annual certificationof Kansas account balance.(a) Classification of employers by the secretary. The term"employer" as used in this section refers to contributing employers. Thesecretary shall classify employers in accordance with their actualexperience in the payment of contributions on their own behalf and withrespect to benefits charged against their accounts with a view of fixingsuch contribution rates as will reflect such experience. If, as of thedate such classification of employers is made, the secretary finds thatany employing unit has failed to file any report required in connectiontherewith, or has filed a report which the secretary finds incorrect orinsufficient, the secretary shall make an estimate of the informationrequired from such employing unit on the basis of the best evidencereasonably available to the secretary at the time, and notify the employingunit thereof by mail addressed to its last known address. Unless suchemploying unit shall file the report or a corrected or sufficient reportas the case may be, within 15 days after the mailing of suchnotice, the secretary shall compute such employing unit's rate ofcontributions on the basis of such estimates, and the rate as sodetermined shall be subject to increase but not to reduction on thebasis of subsequently ascertained information. The secretary shalldetermine the contribution rate of each employer in accordance with therequirements of this section.
(1) New employers. (A) No employer will be eligible for a ratecomputation until there have been 24 consecutive calendar months immediatelypreceding the computation date throughout which benefits could have beencharged against such employer's account.
(B) (i) For the rate year 2007 and each rate year thereafter, eachemployer who is not eligible for a rate contribution shall pay contributionsequal to 4% of wages paid during each calendaryear with regard to employment except such employers engaged in theconstruction industry shall pay a rate equal to 6%.
(ii) For rate years prior to 2007, employers who are not eligible for arate computation shall pay contributions at an assigned rate equal to thesum of 1% plus the greater of the average rate assigned in the precedingcalendar year to all employers in such industry sectoror the average rate assigned to all covered employers during the precedingcalendar year, except that in no instance shall any such assigned rate be lessthan 2%. Employers engaged in more than one type of industrial activityshall be classified by principal activity. All rates assigned will remain ineffect for a complete calendar year. If the sale or acquisition of a newestablishment would require reclassification of the employer to adifferent industry sector, the employer would bepromptly notified, and the contribution rate applicable to the new industrysector wouldbecome effective the following January 1.
(iii) For purposes of this subsection (a), employers shallbe classified byindustrial activity in accordance with standard procedures as set forthin rules and regulations adopted by the secretary.
(C) "Computation date" means June 30 of each calendar year withrespect to rates of contribution applicable to the calendar yearbeginning with the following January 1. In arriving at contributionrates for each calendar year, contributions paid on or before July 31following the computation date for employment occurring on or prior tothe computation date shall be considered for each contributing employerwho has been subject to this act for a sufficient period of time to havesuch employer's rate computed under this subsection (a).
(2) Eligible employers. (A) A reserve ratio shall be computed foreach eligible employer by the following method: Total benefits chargedto the employer's account for all past years shall be deducted from allcontributions paid by such employer for all such years. The balance,positive or negative, shall be divided by the employer's average annualpayroll, and the result shall constitute the employer reserve ratio.
(B) Negative account balance employers as defined in subsection (d)shall pay contributions at the rate of 5.4% for each calendar year.
(C) Eligible employers, other than negative account balanceemployers, who do not meet the average annual payroll requirements asstated in subsection (a)(2) of K.S.A. 44-703, and amendments thereto,will be issued the maximum rate indicated in subsection (a)(3)(C) of thissection until such employer establishes a new period of 24 consecutivecalendar months immediately preceding the computation date throughout whichbenefits could have been charged against such employer's account byresuming the payment of wages. Contribution rates effective for eachcalendar year thereafter shall be determined as prescribed below.
(D) As of each computation date, the total of the taxable wages paid duringthe 12-month period prior to the computation date byall employerseligible for rate computation, except negative account balanceemployers, shall be divided into 51 approximately equalparts designated in column A of schedule I as "rategroups," except, with regard to a year in which the taxable wage basechanges. The taxable wages used in the calculation for such a year and thefollowing year shall be an estimate of what the taxable wages would havebeen if the new taxable wage base had been in effect during the entiretwelve-month period prior to the computation date. The lowestnumbered of such rate groups shall consist of the employers with themost favorable reserve ratios, as defined in this section, whosecombined taxable wages paid are less than 1.96% of all taxable wages paidby all eligible employers.Each succeeding higher numbered rate group shall consist of employerswith reserve ratios that are less favorable than those of employers inthe preceding lower numbered rate groups and whose taxable wages whencombined with the taxable wages of employers in all lower numbered rategroups equal the appropriate percentage of total taxable wagesdesignated in column B of schedule I. Each eligible employer, other thana negative account balance employer, shall be assigned an experiencefactor designated under column C of schedule I in accordance with therate group to which the employer is assigned on the basis of the employer'sreserve ratio and taxable payroll. If an employer's taxable payrollfalls into more than one rate group the employer shall be assigned theexperience factor of the lower numbered rate group. If one or moreemployers have reserve ratios identical to that of the last employerincluded in the next lower numbered rate group, all such employers shallbe assigned the experience factor designated to such last employer,notwithstanding the position of their taxable payroll in column B ofschedule I.
SCHEDULE I--Eligible Employers
Column A Column B Column C Rate Cumulative Experience factor group taxable payroll (Ratio to total wages) 1 Less than 1.96%..................025% 2 1.96% but less than 3.92..................04 3 3.92 but less than 5.88..................08 4 5.88 but less than 7.84..................12 5 7.84 but less than 9.80..................16 6 9.80 but less than 11.76..................20 7 11.76 but less than 13.72..................24 8 13.72 but less than 15.68..................28 9 15.68 but less than 17.64..................32 10 17.64 but less than 19.60..................36 11 19.60 but less than 21.56..................40 12 21.56 but less than 23.52..................44 13 23.52 but less than 25.48..................48 14 25.48 but less than 27.44..................52 15 27.44 but less than 29.40..................56 16 29.40 but less than 31.36..................60 17 31.36 but less than 33.32..................64 18 33.32 but less than 35.28..................68 19 35.28 but less than 37.24..................72 20 37.24 but less than 39.20..................76 21 39.20 but less than 41.16..................80 22 41.16 but less than 43.12..................84 23 43.12 but less than 45.08..................88 24 45.08 but less than 47.04..................92 25 47.04 but less than 49.00..................96 26 49.00 but less than 50.96.................1.00 27 50.96 but less than 52.92.................1.04 28 52.92 but less than 54.88.................1.08 29 54.88 but less than 56.84.................1.12 30 56.84 but less than 58.80.................1.16 31 58.80 but less than 60.76.................1.20 32 60.76 but less than 62.72.................1.24 33 62.72 but less than 64.68.................1.28 34 64.68 but less than 66.64.................1.32 35 66.64 but less than 68.60.................1.36 36 68.60 but less than 70.56.................1.40 37 70.56 but less than 72.52.................1.44 38 72.52 but less than 74.48.................1.48 39 74.48 but less than 76.44.................1.52 40 76.44 but less than 78.40.................1.56 41 78.40 but less than 80.36.................1.60 42 80.36 but less than 82.32.................1.64 43 82.32 but less than 84.28.................1.68 44 84.28 but less than 86.24.................1.72 45 86.24 but less than 88.20.................1.76 46 88.20 but less than 90.16.................1.80 47 90.16 but less than 92.12.................1.84 48 92.12 but less than 94.08.................1.88 49 94.08 but less than 96.04.................1.92 50 96.04 but less than 98.00.................1.96 51 98.00 and over.................2.00
(E) Negative account balance employers shall, in addition to payingthe rate provided for in subsection (a)(2)(B) of this section, pay a surchargebased on the size of the employer's negative reserve ratio, the calculationwhich is provided for in subsection (a)(2) of this section. The amount ofthe surcharge shall be determined from column B of schedule II of this section.Each negative account balance employer who does not satisfy the requirementsto have an average annual payroll, as defined by subsection (a)(2) of K.S.A.44-703, and amendments thereto, shall be assigned a surcharge of2%.Contribution payments made pursuant to this subsection (a)(2)(E) shall becredited to the appropriate account of such negative account balance employer.
SCHEDULE II--Surcharge on Negative Accounts
Column A Column BNegative Reserve Ratio Surcharge as a percent of taxable wages Less than 2.0%................. 0.20% 2.0% but less than 4.0 ................. .40 4.0 but less than 6.0................. .60 6.0 but less than 8.0................. .80 8.0 but less than 10.0................. 1.00 10.0 but less than 12.0................. 1.20 12.0 but less than 14.0................. 1.40 14.0 but less than 16.0................. 1.60 16.0 but less than 18.0................. 1.80 18.0 and over................. 2.00
(3) Planned yield. (A) The average required yield shall bedetermined from scheduleIIIofthis section, and the planned yield on total wages in column B of schedule IIIshall be determined by the reserve fund ratio in column A of schedule III. Thereserve fund ratio shall be determined by dividing total assets in theemployment security fund provided for in subsection (a) of K.S.A.44-712, andamendments thereto, excluding all moneys credited to the account of this statepursuant to section 903 of the federal social security act, as amended, whichhave been appropriated by the state legislature, whether or not withdrawn fromthe trust fund, and excluding contributions not yet paid on July 31 by totalpayrolls for contributing employers for the preceding fiscal year which endedJune 30.
SCHEDULE III--Fund ControlRatios to Total Wages
Column A Column BReserve Fund Ratio Planned Yield 4.500 and over................. 0.004.475 but less than 4.500.................0.014.450 but less than 4.475.................0.024.425 but less than 4.450.................0.034.400 but less than 4.425.................0.044.375 but less than 4.400.................0.054.350 but less than 4.375.................0.064.325 but less than 4.350.................0.074.300 but less than 4.325.................0.084.275 but less than 4.300.................0.094.250 but less than 4.275.................0.104.225 but less than 4.250.................0.114.200 but less than 4.225.................0.124.175 but less than 4.200.................0.134.150 but less than 4.175.................0.144.125 but less than 4.150.................0.154.100 but less than 4.125.................0.164.075 but less than 4.100.................0.174.050 but less than 4.075.................0.184.025 but less than 4.050.................0.194.000 but less than 4.025.................0.203.950 but less than 4.000.................0.213.900 but less than 3.950.................0.223.850 but less than 3.900.................0.233.800 but less than 3.850.................0.243.750 but less than 3.800.................0.253.700 but less than 3.750.................0.263.650 but less than 3.700.................0.273.600 but less than 3.650.................0.283.550 but less than 3.600.................0.293.500 but less than 3.550.................0.303.450 but less than 3.500.................0.313.400 but less than 3.450.................0.323.350 but less than 3.400.................0.333.300 but less than 3.350.................0.343.250 but less than 3.300.................0.353.200 but less than 3.250.................0.363.150 but less than 3.200.................0.373.100 but less than 3.150.................0.383.050 but less than 3.100.................0.393.000 but less than 3.050.................0.402.950 but less than 3.000.................0.412.900 but less than 2.950.................0.422.850 but less than 2.900.................0.432.800 but less than 2.850.................0.442.750 but less than 2.800.................0.452.700 but less than 2.750.................0.462.650 but less than 2.700.................0.472.600 but less than 2.650.................0.482.550 but less than 2.600.................0.492.500 but less than 2.550.................0.502.450 but less than 2.500.................0.512.400 but less than 2.450.................0.522.350 but less than 2.400.................0.532.300 but less than 2.350.................0.542.250 but less than 2.300.................0.552.200 but less than 2.250.................0.562.150 but less than 2.200.................0.572.100 but less than 2.150.................0.582.050 but less than 2.100.................0.592.000 but less than 2.050.................0.601.975 but less than 2.000.................0.611.950 but less than 1.975.................0.621.925 but less than 1.950.................0.631.900 but less than 1.925.................0.641.875 but less than 1.900.................0.651.850 but less than 1.875.................0.661.825 but less than 1.850.................0.671.800 but less than 1.825.................0.681.775 but less than 1.800.................0.691.750 but less than 1.775.................0.701.725 but less than 1.750.................0.711.700 but less than 1.725.................0.721.675 but less than 1.700.................0.731.650 but less than 1.675.................0.741.625 but less than 1.650.................0.751.600 but less than 1.625.................0.761.575 but less than 1.600.................0.771.550 but less than 1.575.................0.781.525 but less than 1.550.................0.791.500 but less than 1.525.................0.801.475 but less than 1.500.................0.811.450 but less than 1.475.................0.821.425 but less than 1.450.................0.831.400 but less than 1.425.................0.841.375 but less than 1.400.................0.851.350 but less than 1.375.................0.861.325 but less than 1.350.................0.871.300 but less than 1.325.................0.881.275 but less than 1.300.................0.891.250 but less than 1.275.................0.901.225 but less than 1.250.................0.911.200 but less than 1.225.................0.921.175 but less than 1.200.................0.931.150 but less than 1.175.................0.941.125 but less than 1.150.................0.951.100 but less than 1.125.................0.961.075 but less than 1.100.................0.971.050 but less than 1.075.................0.981.025 but less than 1.050.................0.991.000 but less than 1.025.................1.000.900 but less than 1.000.................1.010.800 but less than 0.900.................1.020.700 but less than 0.800.................1.030.600 but less than 0.700.................1.040.500 but less than 0.600.................1.050.400 but less than 0.500.................1.060.300 but less than 0.400.................1.070.200 but less than 0.300.................1.080.100 but less than 0.200.................1.09Less than 0.100%................. 1.10
(B) Adjustment to taxable wages. The planned yield as a percentof total wages, as determined in this subsection (a)(3), shall be adjustedto taxable wages by multiplying by the ratio of total wages to taxablewages for all contributing employers for the preceding fiscal yearending June 30, except, with regard to a year in which the taxable wage basechanges. The taxable wages used in the calculation for such a year and thefollowing year shall be an estimate of what the taxable wages would havebeen if the new taxable wage base had been in effect during all of thepreceding fiscal year ending June 30.
(C) Effective rates. (i) Except with regard to rates fornegativeaccount balance employers, employer contribution rates to be effectivefor the ensuing calendar year shall be computed by adjustingproportionately the experience factors from schedule I of this sectionto the required yield on taxable wages. For thepurposes of this subsection (a)(3), all rates computed shall be rounded tothe nearest .01% and for calendar year 1983 and ensuing calendar years, themaximum effective contribution rate shall not exceed 5.4%.
(ii) For rate year 2007 and subsequent rate years, employerswho are current in filing quarterly wage reports and inpayment of all contributions due and owing, shall beissued a contribution rate based upon the followingreduction: for rate groups 1 through 5, the rates wouldbe reduced to 0.00%; for rate groups 6 through 28,the rates would be reduced by 50%; for rate groups 29through 51, the rates would be reduced by 40%.
(iii) In order to be eligible for the reduced ratesfor rate year 2007, the employer must file all latereports and pay all contributions due and owing withina 30-day period following the date of mailing of theamended rate notice.
(iv) In order to be eligible for the reduced ratesfor rate year 2008 and subsequent rate years, employers must file all reportsdueand pay all contributions due and owing on or beforeJanuary 31 of the applicable year, except that the reduced rates forotherwise eligible employers shall not be effective for any rate year if theaverage high costmultiple of the employment security trust fund balance falls below 1.2as of the computation date of that year's rates.For thepurposes of this provision, the average high costmultiple is the reserve fund ratio, as defined by subsection (a)(3)(A), dividedby the average high benefit cost rate. The average high benefit cost rate shallbe determined by averaging the three highest benefit cost rates over the last20 years from the preceding fiscal year which ended June 30. The high benefitcost rate is defined by dividing total benefits paid in the fiscal year bytotal payrolls for covered employers in the fiscal year.
(b) Successor classification. (1) (A) For the purposes ofthissubsection (b), whenever an employing unit, whether or not it is an "employingunit" within the meaning of subsection (g) of K.S.A. 44-703, andamendmentsthereto, becomes an employer pursuant to subsection (h)(4) of K.S.A.44-703, andamendments thereto, or is an employer at the time of acquisition andmeets thedefinition of a "successor employer" as defined by subsection (dd) of K.S.A.44-703, and amendments thereto, and thereafter transfers its trade orbusiness, or any portionthereof, to another employer and, at the time of the transfer, there issubstantially common ownership, management or control of the two employers,thenthe unemployment experience attributable to the transferred trade or businessshall be transferred to the employer to whom such business is sotransferred. These experience factors consist of allcontributions paid, benefit experienceand annual payrolls of the predecessor employer.The transfer of some or all of an employer's workforce to another employershall be considered a transfer of trade or business when, as the result of suchtransfer, the transferring employer no longer performs trade or business withrespect to the transferred workforce, and such trade or business is performedbythe employer to whom the workforce is transferred.
(B) If, following a transfer of experience under subparagraph (A), thesecretary determines that a substantial purpose of the transfer or businesswas to obtain a reduced liability for contributions, then the experience ratingaccounts of the employers involved shall be combined into a single account andasingle rate assigned to such account.
(2) A successor employer as defined by subsection (h)(4) or subsection(dd) of K.S.A. 44-703, and amendments thereto, may receive theexperiencerating factors of the predecessor employer if an application is made tothe secretary or the secretary's designee in writing within 120 days ofthe date of the transfer.
(3) Whenever an employing unit, whether or not it is an "employing unit"within the meaning of subsection (g) of K.S.A. 44-703, and amendmentsthereto,acquires or in any manner succeeds to a percentage of an employer's annualpayroll which is less than 100% and intends to continue the acquired percentageas a going business, the employing unit may acquire the same percentage of thepredecessor's experience factors if: (A) The predecessoremployer and successoremploying unit make an application in writing on the form prescribed by thesecretary, (B) the application is submitted within 120 daysof the date of thetransfer, (C) the successor employing unit is or becomes anemployer subjectto this act immediately after the transfer, (D) thepercentage of theexperience rating factors transferred shall not be thereafter used in computingthe contribution rate for the predecessor employer, and (E)the secretary findsthat such transfer will not tend to defeat or obstruct the object and purposesof this act.
(4) (A) The rate of both employers in a full or partial successorshipunder paragraph (1) of this subsection shall be recalculated and made effectiveon the first day of the next calendar quarter following the date of transfer oftrade or business.
(B) If a successor employer is determined to be qualified under paragraph(2) or (3) of this subsection to receive the experience ratingfactors of the predecessor employer, the rate assigned to the successoremployer for the remainder of the contributions year shall be determined by thefollowing:
(i) If the acquiring employing unit was an employer subjecttothis actprior to the date of the transfer, the rate of contributionshall bethe same as the contribution rate of the acquiring employeron the date of the transfer.
(ii) If the acquiring employing unit was not anemployer subject to this act prior to the date of the transfer, thesuccessor employer shall have a newly computed rate for the remainder ofthe contribution year which shall be based on the transferred experiencerating factors as they existed on the most recentcomputation date immediatelypreceding the dateof acquisition. These experience rating factors consist of all contributionspaid, benefit experience and annual payrolls.
(5) Whenever an employing unit is not anemployer at the time it acquires the trade orbusiness of an employer, the unemploymentexperience factors of the acquired business shallnot be transferred to such employing unit if thesecretary finds that such employing unit acquiredthe business solely or primarily for the purpose ofobtaining a lower rate of contributions. Instead,such employing unit shall be assigned theapplicable industry rate for a "new employer" asdescribed in subsection (a)(1) of this section. Indetermining whether the business was acquiredsolely or primarily for the purpose of obtaining alower rate of contributions, the secretary shall useobjective factors which may include the cost ofacquiring the business, whether the employercontinued the business enterprise of the acquiredbusiness, how long such business enterprise wascontinued, or whether a substantial number ofnew employees were hired for performance ofduties unrelated to the business activity conductedprior to acquisition.
(6) Whenever an employer's account has been terminated as provided insubsections (d) and (e) of K.S.A. 44-711, and amendments thereto,and theemployer continues with employment to liquidate the business operations,that employer shall continue to be an "employer" subject to the employmentsecurity law as provided in subsection (h)(8) of K.S.A. 44-703 and amendmentsthereto. The rate of contribution from the date of transfer to the end ofthe then current calendar year shall be the same as the contribution rateprior to the date of the transfer. At the completion of the then currentcalendar year, the rate of contribution shall be that of a "new employer"as described in subsection (a)(1) of this section.
(7) No rate computation will be permitted an employing unitsucceeding to the experience of another employing unit pursuant to thissection for any period subsequent to such succession except inaccordance with rules and regulations adopted by the secretary. Any suchregulations shall be consistent with federal requirements for additionalcredit 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 provisionof the employment security law, any employer maymake voluntary payments for the purpose of reducing or maintaining areduced rate in addition to the contributions required under thissection. Such voluntary payments may be made only during the thirty-dayperiod immediately following the date of mailing of experiencerating notices for a calendar year. All such voluntary contributionpayments shall be paid prior to the expiration of 120 days after the beginningof the year for which such rates are effective. The amount of voluntarycontributions shall be credited to the employer's account as of the nextpreceding computation date and the employer's rate shall be computedaccordingly, except that no employer's rate shall be reduced more than fiverate groups as provided in schedule I of this section as the result of avoluntary payment. An employer not having a negative account balance may havesuch employer's rate reduced not more than five rate groups as provided inschedule I of this section as a result of a voluntary payment. An employerhaving a negative account balance may have such employer's rate reduced to thatprescribed for rate group 51 of schedule I of this section by making avoluntary payment in the amount of such negative account balance or to thatrate prescribed for rate groups 50 through 47 of schedule I of this section bymaking an additional voluntary payment that would increase such employer'sreserve ratio to the lower limit required for such rate groups 50 through 47.Under no circumstances shall voluntary payments be refunded in whole or inpart.
(d) As used in this section, "negative account balance employer"means an eligible employer whose total benefits charged to such employer'saccount for all past years have exceeded all contributions paid by suchemployer for all such years.
(e) The secretary of labor shall annuallyprepare and submit acertification as to the solvency and adequacy of the amount credited to thestate of Kansas' account in the federal employment security trust fund to thegovernor and the employment security advisory council. The certification shallbe submitted on or before December 1 ofeachcalendar year and shall be for the 12-month periodending on June 30 ofthat calendar year. In arriving at the certification contributions paid on orbefore July 31 following the 12-month period endingdate of June 30 shallbe considered. Each certification shall be used to determine the need for anyadjustment to schedule III in subsection (a)(3)(A) and to assist in preparinglegislation to accomplish any such adjustment.
44-710a.Same; classification of employers;establishment and assignment of annual rates; surcharge on negative accounts;rate reductions authorized, conditions; successor classifications;voluntary contributions; annual certificationof Kansas account balance.(a) Classification of employers by the secretary. The term"employer" as used in this section refers to contributing employers. Thesecretary shall classify employers in accordance with their actualexperience in the payment of contributions on their own behalf and withrespect to benefits charged against their accounts with a view of fixingsuch contribution rates as will reflect such experience. If, as of thedate such classification of employers is made, the secretary finds thatany employing unit has failed to file any report required in connectiontherewith, or has filed a report which the secretary finds incorrect orinsufficient, the secretary shall make an estimate of the informationrequired from such employing unit on the basis of the best evidencereasonably available to the secretary at the time, and notify the employingunit thereof by mail addressed to its last known address. Unless suchemploying unit shall file the report or a corrected or sufficient reportas the case may be, within 15 days after the mailing of suchnotice, the secretary shall compute such employing unit's rate ofcontributions on the basis of such estimates, and the rate as sodetermined shall be subject to increase but not to reduction on thebasis of subsequently ascertained information. The secretary shalldetermine the contribution rate of each employer in accordance with therequirements of this section.
(1) New employers. (A) No employer will be eligible for a ratecomputation until there have been 24 consecutive calendar months immediatelypreceding the computation date throughout which benefits could have beencharged against such employer's account.
(B) (i) For the rate year 2007 and each rate year thereafter, eachemployer who is not eligible for a rate contribution shall pay contributionsequal to 4% of wages paid during each calendaryear with regard to employment except such employers engaged in theconstruction industry shall pay a rate equal to 6%.
(ii) For rate years prior to 2007, employers who are not eligible for arate computation shall pay contributions at an assigned rate equal to thesum of 1% plus the greater of the average rate assigned in the precedingcalendar year to all employers in such industry sectoror the average rate assigned to all covered employers during the precedingcalendar year, except that in no instance shall any such assigned rate be lessthan 2%. Employers engaged in more than one type of industrial activityshall be classified by principal activity. All rates assigned will remain ineffect for a complete calendar year. If the sale or acquisition of a newestablishment would require reclassification of the employer to adifferent industry sector, the employer would bepromptly notified, and the contribution rate applicable to the new industrysector wouldbecome effective the following January 1.
(iii) For purposes of this subsection (a), employers shallbe classified byindustrial activity in accordance with standard procedures as set forthin rules and regulations adopted by the secretary.
(C) "Computation date" means June 30 of each calendar year withrespect to rates of contribution applicable to the calendar yearbeginning with the following January 1. In arriving at contributionrates for each calendar year, contributions paid on or before July 31following the computation date for employment occurring on or prior tothe computation date shall be considered for each contributing employerwho has been subject to this act for a sufficient period of time to havesuch employer's rate computed under this subsection (a).
(2) Eligible employers. (A) A reserve ratio shall be computed foreach eligible employer by the following method: Total benefits chargedto the employer's account for all past years shall be deducted from allcontributions paid by such employer for all such years. The balance,positive or negative, shall be divided by the employer's average annualpayroll, and the result shall constitute the employer reserve ratio.
(B) Negative account balance employers as defined in subsection (d)shall pay contributions at the rate of 5.4% for each calendar year.
(C) Eligible employers, other than negative account balanceemployers, who do not meet the average annual payroll requirements asstated in subsection (a)(2) of K.S.A. 44-703, and amendments thereto,will be issued the maximum rate indicated in subsection (a)(3)(C) of thissection until such employer establishes a new period of 24 consecutivecalendar months immediately preceding the computation date throughout whichbenefits could have been charged against such employer's account byresuming the payment of wages. Contribution rates effective for eachcalendar year thereafter shall be determined as prescribed below.
(D) As of each computation date, the total of the taxable wages paid duringthe 12-month period prior to the computation date byall employerseligible for rate computation, except negative account balanceemployers, shall be divided into 51 approximately equalparts designated in column A of schedule I as "rategroups," except, with regard to a year in which the taxable wage basechanges. The taxable wages used in the calculation for such a year and thefollowing year shall be an estimate of what the taxable wages would havebeen if the new taxable wage base had been in effect during the entiretwelve-month period prior to the computation date. The lowestnumbered of such rate groups shall consist of the employers with themost favorable reserve ratios, as defined in this section, whosecombined taxable wages paid are less than 1.96% of all taxable wages paidby all eligible employers.Each succeeding higher numbered rate group shall consist of employerswith reserve ratios that are less favorable than those of employers inthe preceding lower numbered rate groups and whose taxable wages whencombined with the taxable wages of employers in all lower numbered rategroups equal the appropriate percentage of total taxable wagesdesignated in column B of schedule I. Each eligible employer, other thana negative account balance employer, shall be assigned an experiencefactor designated under column C of schedule I in accordance with therate group to which the employer is assigned on the basis of the employer'sreserve ratio and taxable payroll. If an employer's taxable payrollfalls into more than one rate group the employer shall be assigned theexperience factor of the lower numbered rate group. If one or moreemployers have reserve ratios identical to that of the last employerincluded in the next lower numbered rate group, all such employers shallbe assigned the experience factor designated to such last employer,notwithstanding the position of their taxable payroll in column B ofschedule I.
SCHEDULE I--Eligible Employers
Column A Column B Column C Rate Cumulative Experience factor group taxable payroll (Ratio to total wages) 1 Less than 1.96%..................025% 2 1.96% but less than 3.92..................04 3 3.92 but less than 5.88..................08 4 5.88 but less than 7.84..................12 5 7.84 but less than 9.80..................16 6 9.80 but less than 11.76..................20 7 11.76 but less than 13.72..................24 8 13.72 but less than 15.68..................28 9 15.68 but less than 17.64..................32 10 17.64 but less than 19.60..................36 11 19.60 but less than 21.56..................40 12 21.56 but less than 23.52..................44 13 23.52 but less than 25.48..................48 14 25.48 but less than 27.44..................52 15 27.44 but less than 29.40..................56 16 29.40 but less than 31.36..................60 17 31.36 but less than 33.32..................64 18 33.32 but less than 35.28..................68 19 35.28 but less than 37.24..................72 20 37.24 but less than 39.20..................76 21 39.20 but less than 41.16..................80 22 41.16 but less than 43.12..................84 23 43.12 but less than 45.08..................88 24 45.08 but less than 47.04..................92 25 47.04 but less than 49.00..................96 26 49.00 but less than 50.96.................1.00 27 50.96 but less than 52.92.................1.04 28 52.92 but less than 54.88.................1.08 29 54.88 but less than 56.84.................1.12 30 56.84 but less than 58.80.................1.16 31 58.80 but less than 60.76.................1.20 32 60.76 but less than 62.72.................1.24 33 62.72 but less than 64.68.................1.28 34 64.68 but less than 66.64.................1.32 35 66.64 but less than 68.60.................1.36 36 68.60 but less than 70.56.................1.40 37 70.56 but less than 72.52.................1.44 38 72.52 but less than 74.48.................1.48 39 74.48 but less than 76.44.................1.52 40 76.44 but less than 78.40.................1.56 41 78.40 but less than 80.36.................1.60 42 80.36 but less than 82.32.................1.64 43 82.32 but less than 84.28.................1.68 44 84.28 but less than 86.24.................1.72 45 86.24 but less than 88.20.................1.76 46 88.20 but less than 90.16.................1.80 47 90.16 but less than 92.12.................1.84 48 92.12 but less than 94.08.................1.88 49 94.08 but less than 96.04.................1.92 50 96.04 but less than 98.00.................1.96 51 98.00 and over.................2.00
(E) Negative account balance employers shall, in addition to payingthe rate provided for in subsection (a)(2)(B) of this section, pay a surchargebased on the size of the employer's negative reserve ratio, the calculationwhich is provided for in subsection (a)(2) of this section. The amount ofthe surcharge shall be determined from column B of schedule II of this section.Each negative account balance employer who does not satisfy the requirementsto have an average annual payroll, as defined by subsection (a)(2) of K.S.A.44-703, and amendments thereto, shall be assigned a surcharge of2%.Contribution payments made pursuant to this subsection (a)(2)(E) shall becredited to the appropriate account of such negative account balance employer.
SCHEDULE II--Surcharge on Negative Accounts
Column A Column BNegative Reserve Ratio Surcharge as a percent of taxable wages Less than 2.0%................. 0.20% 2.0% but less than 4.0 ................. .40 4.0 but less than 6.0................. .60 6.0 but less than 8.0................. .80 8.0 but less than 10.0................. 1.00 10.0 but less than 12.0................. 1.20 12.0 but less than 14.0................. 1.40 14.0 but less than 16.0................. 1.60 16.0 but less than 18.0................. 1.80 18.0 and over................. 2.00
(3) Planned yield. (A) The average required yield shall bedetermined from scheduleIIIofthis section, and the planned yield on total wages in column B of schedule IIIshall be determined by the reserve fund ratio in column A of schedule III. Thereserve fund ratio shall be determined by dividing total assets in theemployment security fund provided for in subsection (a) of K.S.A.44-712, andamendments thereto, excluding all moneys credited to the account of this statepursuant to section 903 of the federal social security act, as amended, whichhave been appropriated by the state legislature, whether or not withdrawn fromthe trust fund, and excluding contributions not yet paid on July 31 by totalpayrolls for contributing employers for the preceding fiscal year which endedJune 30.
SCHEDULE III--Fund ControlRatios to Total Wages
Column A Column BReserve Fund Ratio Planned Yield 4.500 and over................. 0.004.475 but less than 4.500.................0.014.450 but less than 4.475.................0.024.425 but less than 4.450.................0.034.400 but less than 4.425.................0.044.375 but less than 4.400.................0.054.350 but less than 4.375.................0.064.325 but less than 4.350.................0.074.300 but less than 4.325.................0.084.275 but less than 4.300.................0.094.250 but less than 4.275.................0.104.225 but less than 4.250.................0.114.200 but less than 4.225.................0.124.175 but less than 4.200.................0.134.150 but less than 4.175.................0.144.125 but less than 4.150.................0.154.100 but less than 4.125.................0.164.075 but less than 4.100.................0.174.050 but less than 4.075.................0.184.025 but less than 4.050.................0.194.000 but less than 4.025.................0.203.950 but less than 4.000.................0.213.900 but less than 3.950.................0.223.850 but less than 3.900.................0.233.800 but less than 3.850.................0.243.750 but less than 3.800.................0.253.700 but less than 3.750.................0.263.650 but less than 3.700.................0.273.600 but less than 3.650.................0.283.550 but less than 3.600.................0.293.500 but less than 3.550.................0.303.450 but less than 3.500.................0.313.400 but less than 3.450.................0.323.350 but less than 3.400.................0.333.300 but less than 3.350.................0.343.250 but less than 3.300.................0.353.200 but less than 3.250.................0.363.150 but less than 3.200.................0.373.100 but less than 3.150.................0.383.050 but less than 3.100.................0.393.000 but less than 3.050.................0.402.950 but less than 3.000.................0.412.900 but less than 2.950.................0.422.850 but less than 2.900.................0.432.800 but less than 2.850.................0.442.750 but less than 2.800.................0.452.700 but less than 2.750.................0.462.650 but less than 2.700.................0.472.600 but less than 2.650.................0.482.550 but less than 2.600.................0.492.500 but less than 2.550.................0.502.450 but less than 2.500.................0.512.400 but less than 2.450.................0.522.350 but less than 2.400.................0.532.300 but less than 2.350.................0.542.250 but less than 2.300.................0.552.200 but less than 2.250.................0.562.150 but less than 2.200.................0.572.100 but less than 2.150.................0.582.050 but less than 2.100.................0.592.000 but less than 2.050.................0.601.975 but less than 2.000.................0.611.950 but less than 1.975.................0.621.925 but less than 1.950.................0.631.900 but less than 1.925.................0.641.875 but less than 1.900.................0.651.850 but less than 1.875.................0.661.825 but less than 1.850.................0.671.800 but less than 1.825.................0.681.775 but less than 1.800.................0.691.750 but less than 1.775.................0.701.725 but less than 1.750.................0.711.700 but less than 1.725.................0.721.675 but less than 1.700.................0.731.650 but less than 1.675.................0.741.625 but less than 1.650.................0.751.600 but less than 1.625.................0.761.575 but less than 1.600.................0.771.550 but less than 1.575.................0.781.525 but less than 1.550.................0.791.500 but less than 1.525.................0.801.475 but less than 1.500.................0.811.450 but less than 1.475.................0.821.425 but less than 1.450.................0.831.400 but less than 1.425.................0.841.375 but less than 1.400.................0.851.350 but less than 1.375.................0.861.325 but less than 1.350.................0.871.300 but less than 1.325.................0.881.275 but less than 1.300.................0.891.250 but less than 1.275.................0.901.225 but less than 1.250.................0.911.200 but less than 1.225.................0.921.175 but less than 1.200.................0.931.150 but less than 1.175.................0.941.125 but less than 1.150.................0.951.100 but less than 1.125.................0.961.075 but less than 1.100.................0.971.050 but less than 1.075.................0.981.025 but less than 1.050.................0.991.000 but less than 1.025.................1.000.900 but less than 1.000.................1.010.800 but less than 0.900.................1.020.700 but less than 0.800.................1.030.600 but less than 0.700.................1.040.500 but less than 0.600.................1.050.400 but less than 0.500.................1.060.300 but less than 0.400.................1.070.200 but less than 0.300.................1.080.100 but less than 0.200.................1.09Less than 0.100%................. 1.10
(B) Adjustment to taxable wages. The planned yield as a percentof total wages, as determined in this subsection (a)(3), shall be adjustedto taxable wages by multiplying by the ratio of total wages to taxablewages for all contributing employers for the preceding fiscal yearending June 30, except, with regard to a year in which the taxable wage basechanges. The taxable wages used in the calculation for such a year and thefollowing year shall be an estimate of what the taxable wages would havebeen if the new taxable wage base had been in effect during all of thepreceding fiscal year ending June 30.
(C) Effective rates. (i) Except with regard to rates fornegativeaccount balance employers, employer contribution rates to be effectivefor the ensuing calendar year shall be computed by adjustingproportionately the experience factors from schedule I of this sectionto the required yield on taxable wages. For thepurposes of this subsection (a)(3), all rates computed shall be rounded tothe nearest .01% and for calendar year 1983 and ensuing calendar years, themaximum effective contribution rate shall not exceed 5.4%.
(ii) For rate year 2007 and subsequent rate years, employerswho are current in filing quarterly wage reports and inpayment of all contributions due and owing, shall beissued a contribution rate based upon the followingreduction: for rate groups 1 through 5, the rates wouldbe reduced to 0.00%; for rate groups 6 through 28,the rates would be reduced by 50%; for rate groups 29through 51, the rates would be reduced by 40%.
(iii) In order to be eligible for the reduced ratesfor rate year 2007, the employer must file all latereports and pay all contributions due and owing withina 30-day period following the date of mailing of theamended rate notice.
(iv) In order to be eligible for the reduced ratesfor rate year 2008 and subsequent rate years, employers must file all reportsdueand pay all contributions due and owing on or beforeJanuary 31 of the applicable year, except that the reduced rates forotherwise eligible employers shall not be effective for any rate year if theaverage high costmultiple of the employment security trust fund balance falls below 1.2as of the computation date of that year's rates.For thepurposes of this provision, the average high costmultiple is the reserve fund ratio, as defined by subsection (a)(3)(A), dividedby the average high benefit cost rate. The average high benefit cost rate shallbe determined by averaging the three highest benefit cost rates over the last20 years from the preceding fiscal year which ended June 30. The high benefitcost rate is defined by dividing total benefits paid in the fiscal year bytotal payrolls for covered employers in the fiscal year.
(b) Successor classification. (1) (A) For the purposes ofthissubsection (b), whenever an employing unit, whether or not it is an "employingunit" within the meaning of subsection (g) of K.S.A. 44-703, andamendmentsthereto, becomes an employer pursuant to subsection (h)(4) of K.S.A.44-703, andamendments thereto, or is an employer at the time of acquisition andmeets thedefinition of a "successor employer" as defined by subsection (dd) of K.S.A.44-703, and amendments thereto, and thereafter transfers its trade orbusiness, or any portionthereof, to another employer and, at the time of the transfer, there issubstantially common ownership, management or control of the two employers,thenthe unemployment experience attributable to the transferred trade or businessshall be transferred to the employer to whom such business is sotransferred. These experience factors consist of allcontributions paid, benefit experienceand annual payrolls of the predecessor employer.The transfer of some or all of an employer's workforce to another employershall be considered a transfer of trade or business when, as the result of suchtransfer, the transferring employer no longer performs trade or business withrespect to the transferred workforce, and such trade or business is performedbythe employer to whom the workforce is transferred.
(B) If, following a transfer of experience under subparagraph (A), thesecretary determines that a substantial purpose of the transfer or businesswas to obtain a reduced liability for contributions, then the experience ratingaccounts of the employers involved shall be combined into a single account andasingle rate assigned to such account.
(2) A successor employer as defined by subsection (h)(4) or subsection(dd) of K.S.A. 44-703, and amendments thereto, may receive theexperiencerating factors of the predecessor employer if an application is made tothe secretary or the secretary's designee in writing within 120 days ofthe date of the transfer.
(3) Whenever an employing unit, whether or not it is an "employing unit"within the meaning of subsection (g) of K.S.A. 44-703, and amendmentsthereto,acquires or in any manner succeeds to a percentage of an employer's annualpayroll which is less than 100% and intends to continue the acquired percentageas a going business, the employing unit may acquire the same percentage of thepredecessor's experience factors if: (A) The predecessoremployer and successoremploying unit make an application in writing on the form prescribed by thesecretary, (B) the application is submitted within 120 daysof the date of thetransfer, (C) the successor employing unit is or becomes anemployer subjectto this act immediately after the transfer, (D) thepercentage of theexperience rating factors transferred shall not be thereafter used in computingthe contribution rate for the predecessor employer, and (E)the secretary findsthat such transfer will not tend to defeat or obstruct the object and purposesof this act.
(4) (A) The rate of both employers in a full or partial successorshipunder paragraph (1) of this subsection shall be recalculated and made effectiveon the first day of the next calendar quarter following the date of transfer oftrade or business.
(B) If a successor employer is determined to be qualified under paragraph(2) or (3) of this subsection to receive the experience ratingfactors of the predecessor employer, the rate assigned to the successoremployer for the remainder of the contributions year shall be determined by thefollowing:
(i) If the acquiring employing unit was an employer subjecttothis actprior to the date of the transfer, the rate of contributionshall bethe same as the contribution rate of the acquiring employeron the date of the transfer.
(ii) If the acquiring employing unit was not anemployer subject to this act prior to the date of the transfer, thesuccessor employer shall have a newly computed rate for the remainder ofthe contribution year which shall be based on the transferred experiencerating factors as they existed on the most recentcomputation date immediatelypreceding the dateof acquisition. These experience rating factors consist of all contributionspaid, benefit experience and annual payrolls.
(5) Whenever an employing unit is not anemployer at the time it acquires the trade orbusiness of an employer, the unemploymentexperience factors of the acquired business shallnot be transferred to such employing unit if thesecretary finds that such employing unit acquiredthe business solely or primarily for the purpose ofobtaining a lower rate of contributions. Instead,such employing unit shall be assigned theapplicable industry rate for a "new employer" asdescribed in subsection (a)(1) of this section. Indetermining whether the business was acquiredsolely or primarily for the purpose of obtaining alower rate of contributions, the secretary shall useobjective factors which may include the cost ofacquiring the business, whether the employercontinued the business enterprise of the acquiredbusiness, how long such business enterprise wascontinued, or whether a substantial number ofnew employees were hired for performance ofduties unrelated to the business activity conductedprior to acquisition.
(6) Whenever an employer's account has been terminated as provided insubsections (d) and (e) of K.S.A. 44-711, and amendments thereto,and theemployer continues with employment to liquidate the business operations,that employer shall continue to be an "employer" subject to the employmentsecurity law as provided in subsection (h)(8) of K.S.A. 44-703 and amendmentsthereto. The rate of contribution from the date of transfer to the end ofthe then current calendar year shall be the same as the contribution rateprior to the date of the transfer. At the completion of the then currentcalendar year, the rate of contribution shall be that of a "new employer"as described in subsection (a)(1) of this section.
(7) No rate computation will be permitted an employing unitsucceeding to the experience of another employing unit pursuant to thissection for any period subsequent to such succession except inaccordance with rules and regulations adopted by the secretary. Any suchregulations shall be consistent with federal requirements for additionalcredit 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 provisionof the employment security law, any employer maymake voluntary payments for the purpose of reducing or maintaining areduced rate in addition to the contributions required under thissection. Such voluntary payments may be made only during the thirty-dayperiod immediately following the date of mailing of experiencerating notices for a calendar year. All such voluntary contributionpayments shall be paid prior to the expiration of 120 days after the beginningof the year for which such rates are effective. The amount of voluntarycontributions shall be credited to the employer's account as of the nextpreceding computation date and the employer's rate shall be computedaccordingly, except that no employer's rate shall be reduced more than fiverate groups as provided in schedule I of this section as the result of avoluntary payment. An employer not having a negative account balance may havesuch employer's rate reduced not more than five rate groups as provided inschedule I of this section as a result of a voluntary payment. An employerhaving a negative account balance may have such employer's rate reduced to thatprescribed for rate group 51 of schedule I of this section by making avoluntary payment in the amount of such negative account balance or to thatrate prescribed for rate groups 50 through 47 of schedule I of this section bymaking an additional voluntary payment that would increase such employer'sreserve ratio to the lower limit required for such rate groups 50 through 47.Under no circumstances shall voluntary payments be refunded in whole or inpart.
(d) As used in this section, "negative account balance employer"means an eligible employer whose total benefits charged to such employer'saccount for all past years have exceeded all contributions paid by suchemployer for all such years.
(e) The secretary of labor shall annuallyprepare and submit acertification as to the solvency and adequacy of the amount credited to thestate of Kansas' account in the federal employment security trust fund to thegovernor and the employment security advisory council. The certification shallbe submitted on or before December 1 ofeachcalendar year and shall be for the 12-month periodending on June 30 ofthat calendar year. In arriving at the certification contributions paid on orbefore July 31 following the 12-month period endingdate of June 30 shallbe considered. Each certification shall be used to determine the need for anyadjustment to schedule III in subsection (a)(3)(A) and to assist in preparinglegislation to accomplish any such adjustment.
44-710a.Same; classification of employers;establishment and assignment of annual rates; surcharge on negative accounts;rate reductions authorized, conditions; successor classifications;voluntary contributions; annual certificationof Kansas account balance.(a) Classification of employers by the secretary. The term"employer" as used in this section refers to contributing employers. Thesecretary shall classify employers in accordance with their actualexperience in the payment of contributions on their own behalf and withrespect to benefits charged against their accounts with a view of fixingsuch contribution rates as will reflect such experience. If, as of thedate such classification of employers is made, the secretary finds thatany employing unit has failed to file any report required in connectiontherewith, or has filed a report which the secretary finds incorrect orinsufficient, the secretary shall make an estimate of the informationrequired from such employing unit on the basis of the best evidencereasonably available to the secretary at the time, and notify the employingunit thereof by mail addressed to its last known address. Unless suchemploying unit shall file the report or a corrected or sufficient reportas the case may be, within 15 days after the mailing of suchnotice, the secretary shall compute such employing unit's rate ofcontributions on the basis of such estimates, and the rate as sodetermined shall be subject to increase but not to reduction on thebasis of subsequently ascertained information. The secretary shalldetermine the contribution rate of each employer in accordance with therequirements of this section.
(1) New employers. (A) No employer will be eligible for a ratecomputation until there have been 24 consecutive calendar months immediatelypreceding the computation date throughout which benefits could have beencharged against such employer's account.
(B) (i) For the rate year 2007 and each rate year thereafter, eachemployer who is not eligible for a rate contribution shall pay contributionsequal to 4% of wages paid during each calendaryear with regard to employment except such employers engaged in theconstruction industry shall pay a rate equal to 6%.
(ii) For rate years prior to 2007, employers who are not eligible for arate computation shall pay contributions at an assigned rate equal to thesum of 1% plus the greater of the average rate assigned in the precedingcalendar year to all employers in such industry sectoror the average rate assigned to all covered employers during the precedingcalendar year, except that in no instance shall any such assigned rate be lessthan 2%. Employers engaged in more than one type of industrial activityshall be classified by principal activity. All rates assigned will remain ineffect for a complete calendar year. If the sale or acquisition of a newestablishment would require reclassification of the employer to adifferent industry sector, the employer would bepromptly notified, and the contribution rate applicable to the new industrysector wouldbecome effective the following January 1.
(iii) For purposes of this subsection (a), employers shallbe classified byindustrial activity in accordance with standard procedures as set forthin rules and regulations adopted by the secretary.
(C) "Computation date" means June 30 of each calendar year withrespect to rates of contribution applicable to the calendar yearbeginning with the following January 1. In arriving at contributionrates for each calendar year, contributions paid on or before July 31following the computation date for employment occurring on or prior tothe computation date shall be considered for each contributing employerwho has been subject to this act for a sufficient period of time to havesuch employer's rate computed under this subsection (a).
(2) Eligible employers. (A) A reserve ratio shall be computed foreach eligible employer by the following method: Total benefits chargedto the employer's account for all past years shall be deducted from allcontributions paid by such employer for all such years. The balance,positive or negative, shall be divided by the employer's average annualpayroll, and the result shall constitute the employer reserve ratio.
(B) Negative account balance employers as defined in subsection (d)shall pay contributions at the rate of 5.4% for each calendar year.
(C) Eligible employers, other than negative account balanceemployers, who do not meet the average annual payroll requirements asstated in subsection (a)(2) of K.S.A. 44-703, and amendments thereto,will be issued the maximum rate indicated in subsection (a)(3)(C) of thissection until such employer establishes a new period of 24 consecutivecalendar months immediately preceding the computation date throughout whichbenefits could have been charged against such employer's account byresuming the payment of wages. Contribution rates effective for eachcalendar year thereafter shall be determined as prescribed below.
(D) As of each computation date, the total of the taxable wages paid duringthe 12-month period prior to the computation date byall employerseligible for rate computation, except negative account balanceemployers, shall be divided into 51 approximately equalparts designated in column A of schedule I as "rategroups," except, with regard to a year in which the taxable wage basechanges. The taxable wages used in the calculation for such a year and thefollowing year shall be an estimate of what the taxable wages would havebeen if the new taxable wage base had been in effect during the entiretwelve-month period prior to the computation date. The lowestnumbered of such rate groups shall consist of the employers with themost favorable reserve ratios, as defined in this section, whosecombined taxable wages paid are less than 1.96% of all taxable wages paidby all eligible employers.Each succeeding higher numbered rate group shall consist of employerswith reserve ratios that are less favorable than those of employers inthe preceding lower numbered rate groups and whose taxable wages whencombined with the taxable wages of employers in all lower numbered rategroups equal the appropriate percentage of total taxable wagesdesignated in column B of schedule I. Each eligible employer, other thana negative account balance employer, shall be assigned an experiencefactor designated under column C of schedule I in accordance with therate group to which the employer is assigned on the basis of the employer'sreserve ratio and taxable payroll. If an employer's taxable payrollfalls into more than one rate group the employer shall be assigned theexperience factor of the lower numbered rate group. If one or moreemployers have reserve ratios identical to that of the last employerincluded in the next lower numbered rate group, all such employers shallbe assigned the experience factor designated to such last employer,notwithstanding the position of their taxable payroll in column B ofschedule I.
SCHEDULE I--Eligible Employers
Column A Column B Column C Rate Cumulative Experience factor group taxable payroll (Ratio to total wages) 1 Less than 1.96%..................025% 2 1.96% but less than 3.92..................04 3 3.92 but less than 5.88..................08 4 5.88 but less than 7.84..................12 5 7.84 but less than 9.80..................16 6 9.80 but less than 11.76..................20 7 11.76 but less than 13.72..................24 8 13.72 but less than 15.68..................28 9 15.68 but less than 17.64..................32 10 17.64 but less than 19.60..................36 11 19.60 but less than 21.56..................40 12 21.56 but less than 23.52..................44 13 23.52 but less than 25.48..................48 14 25.48 but less than 27.44..................52 15 27.44 but less than 29.40..................56 16 29.40 but less than 31.36..................60 17 31.36 but less than 33.32..................64 18 33.32 but less than 35.28..................68 19 35.28 but less than 37.24..................72 20 37.24 but less than 39.20..................76 21 39.20 but less than 41.16..................80 22 41.16 but less than 43.12..................84 23 43.12 but less than 45.08..................88 24 45.08 but less than 47.04..................92 25 47.04 but less than 49.00..................96 26 49.00 but less than 50.96.................1.00 27 50.96 but less than 52.92.................1.04 28 52.92 but less than 54.88.................1.08 29 54.88 but less than 56.84.................1.12 30 56.84 but less than 58.80.................1.16 31 58.80 but less than 60.76.................1.20 32 60.76 but less than 62.72.................1.24 33 62.72 but less than 64.68.................1.28 34 64.68 but less than 66.64.................1.32 35 66.64 but less than 68.60.................1.36 36 68.60 but less than 70.56.................1.40 37 70.56 but less than 72.52.................1.44 38 72.52 but less than 74.48.................1.48 39 74.48 but less than 76.44.................1.52 40 76.44 but less than 78.40.................1.56 41 78.40 but less than 80.36.................1.60 42 80.36 but less than 82.32.................1.64 43 82.32 but less than 84.28.................1.68 44 84.28 but less than 86.24.................1.72 45 86.24 but less than 88.20.................1.76 46 88.20 but less than 90.16.................1.80 47 90.16 but less than 92.12.................1.84 48 92.12 but less than 94.08.................1.88 49 94.08 but less than 96.04.................1.92 50 96.04 but less than 98.00.................1.96 51 98.00 and over.................2.00
(E) Negative account balance employers shall, in addition to payingthe rate provided for in subsection (a)(2)(B) of this section, pay a surchargebased on the size of the employer's negative reserve ratio, the calculationwhich is provided for in subsection (a)(2) of this section. The amount ofthe surcharge shall be determined from column B of schedule II of this section.Each negative account balance employer who does not satisfy the requirementsto have an average annual payroll, as defined by subsection (a)(2) of K.S.A.44-703, and amendments thereto, shall be assigned a surcharge of2%.Contribution payments made pursuant to this subsection (a)(2)(E) shall becredited to the appropriate account of such negative account balance employer.
SCHEDULE II--Surcharge on Negative Accounts
Column A Column BNegative Reserve Ratio Surcharge as a percent of taxable wages Less than 2.0%................. 0.20% 2.0% but less than 4.0 ................. .40 4.0 but less than 6.0................. .60 6.0 but less than 8.0................. .80 8.0 but less than 10.0................. 1.00 10.0 but less than 12.0................. 1.20 12.0 but less than 14.0................. 1.40 14.0 but less than 16.0................. 1.60 16.0 but less than 18.0................. 1.80 18.0 and over................. 2.00
(3) Planned yield. (A) The average required yield shall bedetermined from scheduleIIIofthis section, and the planned yield on total wages in column B of schedule IIIshall be determined by the reserve fund ratio in column A of schedule III. Thereserve fund ratio shall be determined by dividing total assets in theemployment security fund provided for in subsection (a) of K.S.A.44-712, andamendments thereto, excluding all moneys credited to the account of this statepursuant to section 903 of the federal social security act, as amended, whichhave been appropriated by the state legislature, whether or not withdrawn fromthe trust fund, and excluding contributions not yet paid on July 31 by totalpayrolls for contributing employers for the preceding fiscal year which endedJune 30.
SCHEDULE III--Fund ControlRatios to Total Wages
Column A Column BReserve Fund Ratio Planned Yield 4.500 and over................. 0.004.475 but less than 4.500.................0.014.450 but less than 4.475.................0.024.425 but less than 4.450.................0.034.400 but less than 4.425.................0.044.375 but less than 4.400.................0.054.350 but less than 4.375.................0.064.325 but less than 4.350.................0.074.300 but less than 4.325.................0.084.275 but less than 4.300.................0.094.250 but less than 4.275.................0.104.225 but less than 4.250.................0.114.200 but less than 4.225.................0.124.175 but less than 4.200.................0.134.150 but less than 4.175.................0.144.125 but less than 4.150.................0.154.100 but less than 4.125.................0.164.075 but less than 4.100.................0.174.050 but less than 4.075.................0.184.025 but less than 4.050.................0.194.000 but less than 4.025.................0.203.950 but less than 4.000.................0.213.900 but less than 3.950.................0.223.850 but less than 3.900.................0.233.800 but less than 3.850.................0.243.750 but less than 3.800.................0.253.700 but less than 3.750.................0.263.650 but less than 3.700.................0.273.600 but less than 3.650.................0.283.550 but less than 3.600.................0.293.500 but less than 3.550.................0.303.450 but less than 3.500.................0.313.400 but less than 3.450.................0.323.350 but less than 3.400.................0.333.300 but less than 3.350.................0.343.250 but less than 3.300.................0.353.200 but less than 3.250.................0.363.150 but less than 3.200.................0.373.100 but less than 3.150.................0.383.050 but less than 3.100.................0.393.000 but less than 3.050.................0.402.950 but less than 3.000.................0.412.900 but less than 2.950.................0.422.850 but less than 2.900.................0.432.800 but less than 2.850.................0.442.750 but less than 2.800.................0.452.700 but less than 2.750.................0.462.650 but less than 2.700.................0.472.600 but less than 2.650.................0.482.550 but less than 2.600.................0.492.500 but less than 2.550.................0.502.450 but less than 2.500.................0.512.400 but less than 2.450.................0.522.350 but less than 2.400.................0.532.300 but less than 2.350.................0.542.250 but less than 2.300.................0.552.200 but less than 2.250.................0.562.150 but less than 2.200.................0.572.100 but less than 2.150.................0.582.050 but less than 2.100.................0.592.000 but less than 2.050.................0.601.975 but less than 2.000.................0.611.950 but less than 1.975.................0.621.925 but less than 1.950.................0.631.900 but less than 1.925.................0.641.875 but less than 1.900.................0.651.850 but less than 1.875.................0.661.825 but less than 1.850.................0.671.800 but less than 1.825.................0.681.775 but less than 1.800.................0.691.750 but less than 1.775.................0.701.725 but less than 1.750.................0.711.700 but less than 1.725.................0.721.675 but less than 1.700.................0.731.650 but less than 1.675.................0.741.625 but less than 1.650.................0.751.600 but less than 1.625.................0.761.575 but less than 1.600.................0.771.550 but less than 1.575.................0.781.525 but less than 1.550.................0.791.500 but less than 1.525.................0.801.475 but less than 1.500.................0.811.450 but less than 1.475.................0.821.425 but less than 1.450.................0.831.400 but less than 1.425.................0.841.375 but less than 1.400.................0.851.350 but less than 1.375.................0.861.325 but less than 1.350.................0.871.300 but less than 1.325.................0.881.275 but less than 1.300.................0.891.250 but less than 1.275.................0.901.225 but less than 1.250.................0.911.200 but less than 1.225.................0.921.175 but less than 1.200.................0.931.150 but less than 1.175.................0.941.125 but less than 1.150.................0.951.100 but less than 1.125.................0.961.075 but less than 1.100.................0.971.050 but less than 1.075.................0.981.025 but less than 1.050.................0.991.000 but less than 1.025.................1.000.900 but less than 1.000.................1.010.800 but less than 0.900.................1.020.700 but less than 0.800.................1.030.600 but less than 0.700.................1.040.500 but less than 0.600.................1.050.400 but less than 0.500.................1.060.300 but less than 0.400.................1.070.200 but less than 0.300.................1.080.100 but less than 0.200.................1.09Less than 0.100%................. 1.10
(B) Adjustment to taxable wages. The planned yield as a percentof total wages, as determined in this subsection (a)(3), shall be adjustedto taxable wages by multiplying by the ratio of total wages to taxablewages for all contributing employers for the preceding fiscal yearending June 30, except, with regard to a year in which the taxable wage basechanges. The taxable wages used in the calculation for such a year and thefollowing year shall be an estimate of what the taxable wages would havebeen if the new taxable wage base had been in effect during all of thepreceding fiscal year ending June 30.
(C) Effective rates. (i) Except with regard to rates fornegativeaccount balance employers, employer contribution rates to be effectivefor the ensuing calendar year shall be computed by adjustingproportionately the experience factors from schedule I of this sectionto the required yield on taxable wages. For thepurposes of this subsection (a)(3), all rates computed shall be rounded tothe nearest .01% and for calendar year 1983 and ensuing calendar years, themaximum effective contribution rate shall not exceed 5.4%.
(ii) For rate year 2007 and subsequent rate years, employerswho are current in filing quarterly wage reports and inpayment of all contributions due and owing, shall beissued a contribution rate based upon the followingreduction: for rate groups 1 through 5, the rates wouldbe reduced to 0.00%; for rate groups 6 through 28,the rates would be reduced by 50%; for rate groups 29through 51, the rates would be reduced by 40%.
(iii) In order to be eligible for the reduced ratesfor rate year 2007, the employer must file all latereports and pay all contributions due and owing withina 30-day period following the date of mailing of theamended rate notice.
(iv) In order to be eligible for the reduced ratesfor rate year 2008 and subsequent rate years, employers must file all reportsdueand pay all contributions due and owing on or beforeJanuary 31 of the applicable year, except that the reduced rates forotherwise eligible employers shall not be effective for any rate year if theaverage high costmultiple of the employment security trust fund balance falls below 1.2as of the computation date of that year's rates.For thepurposes of this provision, the average high costmultiple is the reserve fund ratio, as defined by subsection (a)(3)(A), dividedby the average high benefit cost rate. The average high benefit cost rate shallbe determined by averaging the three highest benefit cost rates over the last20 years from the preceding fiscal year which ended June 30. The high benefitcost rate is defined by dividing total benefits paid in the fiscal year bytotal payrolls for covered employers in the fiscal year.
(b) Successor classification. (1) (A) For the purposes ofthissubsection (b), whenever an employing unit, whether or not it is an "employingunit" within the meaning of subsection (g) of K.S.A. 44-703, andamendmentsthereto, becomes an employer pursuant to subsection (h)(4) of K.S.A.44-703, andamendments thereto, or is an employer at the time of acquisition andmeets thedefinition of a "successor employer" as defined by subsection (dd) of K.S.A.44-703, and amendments thereto, and thereafter transfers its trade orbusiness, or any portionthereof, to another employer and, at the time of the transfer, there issubstantially common ownership, management or control of the two employers,thenthe unemployment experience attributable to the transferred trade or businessshall be transferred to the employer to whom such business is sotransferred. These experience factors consist of allcontributions paid, benefit experienceand annual payrolls of the predecessor employer.The transfer of some or all of an employer's workforce to another employershall be considered a transfer of trade or business when, as the result of suchtransfer, the transferring employer no longer performs trade or business withrespect to the transferred workforce, and such trade or business is performedbythe employer to whom the workforce is transferred.
(B) If, following a transfer of experience under subparagraph (A), thesecretary determines that a substantial purpose of the transfer or businesswas to obtain a reduced liability for contributions, then the experience ratingaccounts of the employers involved shall be combined into a single account andasingle rate assigned to such account.
(2) A successor employer as defined by subsection (h)(4) or subsection(dd) of K.S.A. 44-703, and amendments thereto, may receive theexperiencerating factors of the predecessor employer if an application is made tothe secretary or the secretary's designee in writing within 120 days ofthe date of the transfer.
(3) Whenever an employing unit, whether or not it is an "employing unit"within the meaning of subsection (g) of K.S.A. 44-703, and amendmentsthereto,acquires or in any manner succeeds to a percentage of an employer's annualpayroll which is less than 100% and intends to continue the acquired percentageas a going business, the employing unit may acquire the same percentage of thepredecessor's experience factors if: (A) The predecessoremployer and successoremploying unit make an application in writing on the form prescribed by thesecretary, (B) the application is submitted within 120 daysof the date of thetransfer, (C) the successor employing unit is or becomes anemployer subjectto this act immediately after the transfer, (D) thepercentage of theexperience rating factors transferred shall not be thereafter used in computingthe contribution rate for the predecessor employer, and (E)the secretary findsthat such transfer will not tend to defeat or obstruct the object and purposesof this act.
(4) (A) The rate of both employers in a full or partial successorshipunder paragraph (1) of this subsection shall be recalculated and made effectiveon the first day of the next calendar quarter following the date of transfer oftrade or business.
(B) If a successor employer is determined to be qualified under paragraph(2) or (3) of this subsection to receive the experience ratingfactors of the predecessor employer, the rate assigned to the successoremployer for the remainder of the contributions year shall be determined by thefollowing:
(i) If the acquiring employing unit was an employer subjecttothis actprior to the date of the transfer, the rate of contributionshall bethe same as the contribution rate of the acquiring employeron the date of the transfer.
(ii) If the acquiring employing unit was not anemployer subject to this act prior to the date of the transfer, thesuccessor employer shall have a newly computed rate for the remainder ofthe contribution year which shall be based on the transferred experiencerating factors as they existed on the most recentcomputation date immediatelypreceding the dateof acquisition. These experience rating factors consist of all contributionspaid, benefit experience and annual payrolls.
(5) Whenever an employing unit is not anemployer at the time it acquires the trade orbusiness of an employer, the unemploymentexperience factors of the acquired business shallnot be transferred to such employing unit if thesecretary finds that such employing unit acquiredthe business solely or primarily for the purpose ofobtaining a lower rate of contributions. Instead,such employing unit shall be assigned theapplicable industry rate for a "new employer" asdescribed in subsection (a)(1) of this section. Indetermining whether the business was acquiredsolely or primarily for the purpose of obtaining alower rate of contributions, the secretary shall useobjective factors which may include the cost ofacquiring the business, whether the employercontinued the business enterprise of the acquiredbusiness, how long such business enterprise wascontinued, or whether a substantial number ofnew employees were hired for performance ofduties unrelated to the business activity conductedprior to acquisition.
(6) Whenever an employer's account has been terminated as provided insubsections (d) and (e) of K.S.A. 44-711, and amendments thereto,and theemployer continues with employment to liquidate the business operations,that employer shall continue to be an "employer" subject to the employmentsecurity law as provided in subsection (h)(8) of K.S.A. 44-703 and amendmentsthereto. The rate of contribution from the date of transfer to the end ofthe then current calendar year shall be the same as the contribution rateprior to the date of the transfer. At the completion of the then currentcalendar year, the rate of contribution shall be that of a "new employer"as described in subsection (a)(1) of this section.
(7) No rate computation will be permitted an employing unitsucceeding to the experience of another employing unit pursuant to thissection for any period subsequent to such succession except inaccordance with rules and regulations adopted by the secretary. Any suchregulations shall be consistent with federal requirements for additionalcredit 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 provisionof the employment security law, any employer maymake voluntary payments for the purpose of reducing or maintaining areduced rate in addition to the contributions required under thissection. Such voluntary payments may be made only during the thirty-dayperiod immediately following the date of mailing of experiencerating notices for a calendar year. All such voluntary contributionpayments shall be paid prior to the expiration of 120 days after the beginningof the year for which such rates are effective. The amount of voluntarycontributions shall be credited to the employer's account as of the nextpreceding computation date and the employer's rate shall be computedaccordingly, except that no employer's rate shall be reduced more than fiverate groups as provided in schedule I of this section as the result of avoluntary payment. An employer not having a negative account balance may havesuch employer's rate reduced not more than five rate groups as provided inschedule I of this section as a result of a voluntary payment. An employerhaving a negative account balance may have such employer's rate reduced to thatprescribed for rate group 51 of schedule I of this section by making avoluntary payment in the amount of such negative account balance or to thatrate prescribed for rate groups 50 through 47 of schedule I of this section bymaking an additional voluntary payment that would increase such employer'sreserve ratio to the lower limit required for such rate groups 50 through 47.Under no circumstances shall voluntary payments be refunded in whole or inpart.
(d) As used in this section, "negative account balance employer"means an eligible employer whose total benefits charged to such employer'saccount for all past years have exceeded all contributions paid by suchemployer for all such years.
(e) The secretary of labor shall annuallyprepare and submit acertification as to the solvency and adequacy of the amount credited to thestate of Kansas' account in the federal employment security trust fund to thegovernor and the employment security advisory council. The certification shallbe submitted on or before December 1 ofeachcalendar year and shall be for the 12-month periodending on June 30 ofthat calendar year. In arriving at the certification contributions paid on orbefore July 31 following the 12-month period endingdate of June 30 shallbe considered. Each certification shall be used to determine the need for anyadjustment to schedule III in subsection (a)(3)(A) and to assist in preparinglegislation to accomplish any such adjustment.
