Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
141.065, Administrative Order HR 86-1
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
141.065 provides a credit to taxpayers for
hiring a person classified as unemployed. The Department for Employment
Services is required by Administrative Order HR 86-1 to perform all
administrative functions pertaining to the Unemployment Tax Credit Program. The
Secretary of the Cabinet for Workforce Development may adopt rules and
administrative regulations as are necessary to implement the Unemployment Tax
Credit Program and as are necessary to cooperate with the Revenue Cabinet for
the proper administration of the program. The function of this administrative
regulation is to establish when a person is classified as unemployed for
purposes of the Unemployment Tax Credit Program, and to establish the appeals
process and general rules for the conduct of hearings regarding the denial of
the unemployment tax credit to a taxpayer.
Section
1. Definitions.
(1) "Actively
seeking work" means a person making a reasonable effort to obtain work at least
sixty (60) days prior to hire as might be expected of a prudent person under
like circumstances, including occupations, salary, number of employing firms in
area and distance involved.
(2)
"Full-time employment" means, for labor market attachment purposes, if a person
worked more than twenty-three (23) hours per week or more than 100 hours per
month for at least thirty (30) days prior to the sixty (60) day, minimum
unemployed period.
(3) "Labor
market attachment" means had full-time employment before the sixty (60) day
minimum unemployed period. Self-employment can be used to meet this
requirement.
(4) "Readily
available" means a person who at least sixty (60) days prior to hire was
willing and able to enter into full-time employment; and possessing the ability
to overcome any barriers, including arranging child care, part-time work or
school schedules, transportation, or other conditions that would prevent an
individual from accepting full-time employment.
Section 2.
(1) A
person shall be considered "classified as unemployed" for purposes of the
Unemployment Tax Credit Program if:
(a) Prior
to the sixty (60) day minimum unemployment period, the person had prior labor
market attachment; and
(b) During
the sixty (60) day minimum unemployment period prior to being hired was:
1. Not working; or
2. Employed not more than twenty-three (23)
hours per week; or
3. Employed not
more than 100 hours per month; and
4. Actively seeking and readily available for
full-time employment.
(2) Involvement in a strike or labor dispute
during the sixty (60) day minimum unemployment period shall not meet the
definition of unemployment for purposes of the Unemployment Tax Credit
Program.
Section 3.
Request for Reconsideration.
(1) Any party
aggrieved as a result of the denial of the unemployment tax credit to a
taxpayer shall request a reconsideration of the denial by contacting the state
tax credit unit. The request for reconsideration shall be in writing. The
request for reconsideration shall be filed within fifteen (15) days of the
mailing date of the denial notice.
(2) The aggrieved party shall submit any
additional information to be considered during the reconsideration process in
writing within ten (10) days of the mailing date of the request for
reconsideration.
(3) The state tax
credit unit shall issue its decision within forty-five (45) days of receipt of
the request for reconsideration. Upon reconsideration, a certificate may be
issued or a second denial letter stating appeal rights for a formal hearing may
be issued.
Section 4.
Appeals to Hearing Officer.
(1) Within fifteen
(15) days of the mailing date of a second denial notice, an aggrieved party
shall file a written request for hearing with the state tax credit unit. Upon
receipt of the written request for hearing, the Secretary of the Cabinet for
Workforce Development shall appoint an impartial hearing officer to hear and
decide appealed denials.
(2) A
hearing shall be scheduled and commenced within sixty (60) days of receipt of
the request for hearing. Notice of the hearing shall be mailed by certified
mail, return receipt requested, to the parties.
(3) Prior to the formal hearing, and upon
seven (7) days written notice to all parties, the hearing officer may hold a
prehearing conference to consider simplification of the issues, admissions of
facts and documents which will avoid unnecessary proof, limitations of the
numbers of witnesses, and any other matters as will aid in the disposition of
the matter. Disposition of the matter may be made at the prehearing conference,
by stipulation, agreed settlement, or consent order. Prehearing conferences
shall be open to the public. A written prehearing conference report shall be
part of the record.
(4) Any party
to a hearing and the administering agency may be represented by counsel and may
make oral or written argument, offer testimony, cross-examine witnesses, or
take any combination of these actions. Depositions shall not be permitted for
the purpose of discovery; however, the hearing officer may authorize
depositions of witnesses who, in his opinion, for good cause shown cannot be
present at the hearing. A hearing officer shall preside at the hearing, shall
keep order, administer oaths, may issue subpoenas, and may admit relevant and
probative evidence, and shall conduct the hearing in accordance with reasonable
administrative practice.
(5) All
testimony at the hearing shall be recorded.
(6) The hearing officer may place reasonable
time limits upon the presentation of testimony, evidence and argument, and may
terminate or exclude irrelevant or redundant evidence, testimony, or
argument.
(7) Within thirty (30)
days of adjournment of the hearing, the hearing officer shall make written
findings of fact, conclusions of law, and a final decision based upon the
record of the proceeding.
STATUTORY AUTHORITY:
KRS
151B.020,
341.115