Kentucky Unemployment Relief For Nonprofit Agencies

Governor Beshear delivered an early Christmas present for Kentucky’s nonprofit companies and agencies. A press release was issued on December 18, 2020 confirming that reimbursing nonprofit employers will not have to repay benefits for Q2-4.

Pursuant to Kentucky law, nonprofits have a choice to participate in the unemployment insurance fund or to reimburse any benefits paid out dollar for dollar. When the pandemic began in early March, many employers had to furlough or terminate staff during mandated shutdowns. An Executive Order from the Governor’s office initially indicated that employers would not be responsible for paying unemployment benefits since the layoffs were caused by government shutdowns. However, non-profits agencies recently began receiving an invoice for 50% of the cost of benefits paid out to employees.

The Governor’s office clarified in the recent press release that the Federal government was covering half of the benefits paid and Kentucky would use CARES Act money to cover the remaining portion. Therefore, nonprofits would not be responsible for benefits paid in in the second, third and fourth quarters. Any employer who already repaid benefits can apply for a refund.