What is the state minimum wage?
- $7.25/hour (equals federal minimum wage)
What do I need to know about state withholding tax?
- Income earned in Kentucky by residents is subject to Kentucky wage withholding tax.
- Income earned in Kentucky by non-residents is subject to Kentucky wage withholding tax unless their state of residence is one that has entered into a reciprocal agreement with Kentucky.
- Kentucky has reciprocal agreements with Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, and Wisconsin.
- These agreements provide for taxpayers to be taxed by their state of residence, and not the state where income is earned.
- New employers are required to register for a withholding account. Click here to register online.
What forms do employees need to set up state withholding?
- Form K-4 – Kentucky’s Withholding Certificate
What do I need to know about unemployment tax?
- 2023 Taxable Wage Base – 10,800
- 2023 New Employer UI Rate – 2.7%
- With few exceptions, new employers are required to register for an unemployment tax account. Click here to register.
How do I report new hires to the state?
- Register and report new hires online (preferred method)
- Report with the paper form
- Kentucky New Hire Reporting Center
P.O. Box 141845
- Phone:(800) 817-2262
- Fax:(800) 817-0099
How do I submit Child Support payments?
- Remit payments online
- Mail check payments to:
Kentucky Child Support Enforcement Program
P.O. Box 14059
Lexington, KY 40512-4059
- Phone: (502) 564-7941
- Fax: (502) 564-4030
Get A Quote For Kentucky Payroll Services