Education and Workforce Development Cabinet
More convenient application makes employer tax credit easier
FRANKFORT, Ky. (June 15, 2015) — Each year, Kentucky employers pass up hundreds of dollars in tax incentives by not taking advantage of an Kentucky Unemployment Tax Credit (KUTC) Program. And now the updated application for the program is an easy, one-page electronic form that can be filled out online.
The state program from the Kentucky Career Center (KCC) allows employers to claim a $100 tax credit against their income tax liability for each qualified, unemployed individual they hire who is certified, said Michelle DeJohn, manager of the Kentucky Career Center Employer Customer Service Branch.
“The Kentucky Unemployment Tax Credit program is a straightforward, uncomplicated state tax credit that can help employers save money by reducing their tax payments. The new, more convenient application has been updated and shortened from a four-page form to a one-page electronic fill-in form,” said DeJohn.
To claim the tax credit, each employee must be certified by the Kentucky Career Center Tax Credit Unit. To be certified, the new worker must have been unemployed for 60 days prior to being hired into a full-time job and must remain employed full time for 180 consecutive calendar days, following the hire date, in the tax year in which the credit is claimed. The application is completed by the employer and the employee.
The completed application is then submitted to the Kentucky Career Center Tax Credit Unit to verify certification. Upon approval, the employer should send the numbered unemployment tax certificate to claim the $100 credit on a State Department of Revenue Tax Schedule unemployment tax credit form.
To obtain certification, Kentucky employers must submit the Kentucky Unemployment Tax Credit application to the Kentucky Tax Credit Unit by mail to Kentucky Career Center Tax Credit Unit, 275 E. Main St., 2WA, Frankfort, KY 40621 or fax to (502)782-3465.For more information about the KUTC program, visit www.kentuckycareercenter.com under the “employer section” and click on “tax credits” and “the unemployment tax credit” link or call 502-782-3465.