SCUF remains in effect for tax year 2024.
SCUF HAS BEEN REINSTATED FOR TAX YEAR 2023.
SCUF HAS BEEN SUSPENDED FOR TAX YEARS 2021 AND 2022.
Important Notice Regarding Contribution Rates
During the 2018 Legislation Session, the General Assembly enacted the Service Capacity Upgrade Fund (SCUF), through HB 487, Section 139. Per KRS 341.243, all contribution rates beginning with the 3rd quarter of 2018 shall be reduced by 0.075%, in order to implement SCUF. There is no increase or decrease in the total amount of tax you will pay. This reduction will divert 0.075% of the contributions that would have been applied to your employer reserve account, and apply to SCUF. In addition, you will not be able to claim SCUF payments on your Federal Unemployment Tax filings. Below is an example of how your 2018 reporting periods will change:
(FOR DEMONSTRATION PURPOSES ONLY. NOT ACTUAL RATE FOR ALL ACCOUNTS)Each year SCUF is in effect, all contribution rates will be reduced by 0.075%. SCUF is estimated to be in effect for the next 5 years or until the fund reaches $60 million.
If filing via Option 1 or Option 3, please update your ICESA 'T' Record Format for Field positions 145-149 and 150-160. If filing via Option 2 Online Form Entry, the rates and adjustments have already been made and require no changes on your part.