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?

  • 2024 Taxable Wage Base – 11,400
  • 2024 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
    Austin,TX 78714-1845
  • 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

Additional Resources:

Kentucky Department of Revenue Kentucky Unemployment Insurance – Employer Guide
Kentucky Workers’ Compensation Law Kentucky – State Laws
Kentucky Forms & Publications Kentucky Child Support -Employer
Kentucky Cabinet for Health and Family Services

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