This tool allows the user to determine the amount of a voluntary payment necessary to achieve a desired contribution rate. Based on information supplied by the user, it will also aid in determining whether the voluntary payment will ultimately result in a savings or a loss for the user. Information obtained from this tool is for informational purposes only and does not change the reporting or payment requirements of the user. Voluntary payments are governed by KRS 341.530 (6).

1. In the box “Current Tax Information,” enter the reserve balance and enter the reserve balance and taxable payroll from your Notice of Contribution Rate. 
2. In the box "Future Tax Information," choose the tax rate you would like to achieve.
3. Enter the "Estimated Taxable Payroll for Rate Year." This figure is the taxable wages you expect to have in the year for which the contribution rate is effective and should take into account the taxable wage base for that year. Click here for a listing of taxable wage base information.
4. Click "Calculate".

Click here to proceed to Voluntary Payments Calculator

The amount showing as "Voluntary Payment" is the amount of a payment required to achieve the desired contribution rate you entered. "Taxes at Current Rate" is the amount of taxes (contributions) you will pay at the contribution rate assigned on your Notice of Contribution Rate. This figure is based on the estimated taxable payroll you entered. "Taxes at New Rate + Voluntary Payment" is the amount of contributions you will pay at the desired contribution rate you entered added to the voluntary payment amount required to achieve that contribution rate.

The last line will be labeled "Estimated Savings" or "Estimated Loss." If the amount is labeled "Estimated Savings," this is the amount of money you will save by making a voluntary payment to achieve a lower tax rate. If the amount is labeled "Estimated Loss," this is the amount of money you will lose by making a voluntary payment to achieve a lower contribution rate. This happens when the "Taxes at New Rate + Voluntary Payment" is greater than "Taxes at Current Rate" meaning it costs less to simply pay contributions at the rate originally assigned than to make a voluntary payment and then pay contributions at the new lower rate. These calculations are based on the estimated taxable payroll that was entered into the tool.

All information from this tool is for informational purposes ONLY and is based on information entered by the user. Eligibility and timing for voluntary payments is governed by KRS 341.530 (6) which is available for review at http://www.lrc.ky.gov/KRS/341-00/530.PDF.