Kentucky's Office of Employment and Training, implemented a new fund that will be administrated by a new surcharge tax called SCUF. SCUF is defined as "Service Capacity Upgrade Fund."

  • The new "SCUF"  tax starts July 1st 2018 and will continue for 5 years or until the fund reaches $60 million dollars.
  • This tax will be supported by our payroll services as stated under the product types below.
  • The agency will be updating their form to indicate this tax is now active.
  • The SCUF tax is not creditable to FUTA.

Note:

The agency will apply the funds on their end when the tax payments are made to the agency. The agency provides details on the SCUF tax in this website article. The agency will not be issuing new unemployment rates, they will divert 0.075% of the current assigned rate to the SCUF tax.

QuickBooks Desktop Payroll Basic, Standard or Enhanced

The tax is supported. The new tax rate is included in the current assigned unemployment rate for 2018. Currently there is an issue on the Kentucky UI-3 form in QuickBooks Desktop wherein the form is adding the amounts under Line 4 and Line 5B and populating it on Line 9. What you can do as a workaround for the meantime is to override the UI tax rate under Line 4 less the SCUF rate which corrects Line 9.

QuickBooks Desktop Payroll Assisted

The tax is supported and the new tax rate is included in the current assigned unemployment rate for 2018.
No actions are required to update the rates for this new tax.   The agency will apply the payment of the tax when they receive payments.

Intuit Online Payroll

The tax is supported.

Intuit Full Service Payroll

The tax is supported.

QuickBooks Online Payroll Enhanced

The tax is supported.

QuickBooks Online Payroll Full Service:

The tax is supported.