The Kentucky State agencies that oversee the collection and reporting of State income taxes withheld from payroll checks are:
Revenue Cabinet
200 Fair Oaks Lane
Frankfort, KY 40601-1134
(502) 564-7287
http://income.ky.gov/
Kentucky requires that you use the Federal “K-4 Employee Withholding Certificate” form to calculate state income tax withholdings.
Not all states allow salary deductions made under a Section 125 or 401(k) cafeteria plan to be treated in the same way as permitted by the IRS code. In the Kentucky cafeteria plans are not taxed for income tax calculations; taxable for unemployment insurance purposes. 401(k) deferred plans are not subject to income tax; taxable for unemployment purposes.
In Kentucky, additional wages must be collected for the calculation of state income tax withholding.
You must file your Kentucky state W-2 via magnetic media if you have at least 250 employees and are required to file your federal W-2 via magnetic media.
The Kentucky State Unemployment Insurance Agency is:
Department of Employment Services
275 E. Main St., 2nd Lt. E.
Frankfort, KY 40621
(502) 564-2900
http://www.kycwd.org/des/ui/ui.htm
The State of Kentucky’s taxable wage base for unemployment purposes is wages up to $8000.00.
Kentucky requires Magnetic media reporting quarterly wage reporting if the employer has at least the 250 employees they reported that quarter.
Unemployment records must be kept in Kentucky for a minimum of six years. This information generally includes: name; ID card number; lease, rehiring and termination dates; wages by period; salary payment period and payment date; date and circumstances of termination.
The Kentucky State agencies charged with enforcing the state’s wage and hour laws are:
Labor Cabinet
Labor Standards Division,
Internship and Training
1047 US 127 South, Ste. 4
Frankfort, KY 40601-4381
(502) 564-3070
http://labor.ky.gov/
The minimum wage in Kentucky is $5.15 per hour.
The general rule in Kentucky about paying overtime at companies not covered by the FLSA is one and a half times the regular rate after a 40 hour week.
The new hiring reporting requirement in Kentucky State is that every employer must report every new hiring and hiring and job refusal. Employers must report the required federal elements of:
- Employee name
- Employee address
- Employee social security number
- Employer’s name
- Employer’s address
- Federal Employer Identification Number (EIN) Employer
This information must be reported within 20 days of hiring or re-hiring.
Information can be sent as W4 or equivalent by mail, fax or electronically.
There is a $250.00 fine for 3rd and subsequent violations for late reporting in Kentucky.
Kentucky’s new hiring reporting agency can be reached at 800-817-2262 or 804-771-9602 or on the web at http://www.newhire-usa.com/ky/.
Kentucky doesn’t allow mandatory direct deposit
Kentucky requires the following information on employee payslips:
- Gross and Net Profit
- cutting purpose
- When to start Cutting? The order specifies a date to start.
- When to send Payment? Dates are recorded sequentially.
- When to send a Termination Notice? “Appropriate.”
- Maximum Administration Fee? $1 per payment.
- Cutting Limit? 50% of disposable income.
Kentucky requires employees to be paid no less than semi-monthly, less often for FLSA-free employees. Kentucky requires that the time lag between the end of the pay period and the payment of wages to employees does not exceed eighteen days. Kentucky’s payroll law requires that employees who are involuntarily terminated must be paid their final payday no later than the next regular payday or 14 days and that employees who are voluntarily terminated must be paid their final salary later on the next regular payday or 14 days. The salary of a deceased employee must be paid when normally due to a surviving spouse or guardian of minor children if there is no will and inheritance is not more than $15,000. Escheat laws in Kentucky require that unclaimed wages be paid to the state after seven years. Employers are further required in Kentucky to keep records of wages abandoned and submitted to the state for a period of 5 years. Kentucky’s payroll law mandates that no more than $3.02 be used as tip credit. In Kentucky, payroll laws that cover mandatory breaks or meal breaks are that employees must have reasonable meal periods within 3-5 hours of the shift starting; a 10 minute break every 4 hours; minors: 30 minute feeding period after 5 hours. Kentucky law requires that records of wages and hours be kept for a period of not less than one year. These records usually contain at least the information required under the FLSA.
The Kentucky agencies tasked with enforcing the Child Support Orders and laws are: Office of the Attorney General’s Office of the Child Support Enforcement Commission 700 Capitol Ave., Ste. 118 Frankfort, KY 40601 (800) 248-1163 http://chfs.ky.gov/ Kentucky has the following provisions for withholding child support:
Please note that this article is not updated for changes that can and will occur from time to time.