| The Kentucky State Agency that oversees the | | | | There is a $250.00 penalty for 3rd and later offenses |
| collection and reporting of State income taxes | | | | for a late report in Kentucky.The Kentucky new |
| deducted from payroll checks is:Revenue Cabinet | | | | hire-reporting agency can be reached at 800-817-2262 |
| 200 Fair Oaks Lane | | | | or 804-771-9602 or on the web at does not allow |
| Frankfort, KY 40601-1134 | | | | compulsory direct depositKentucky requires the |
| (502) 564-7287 | | | | following information on an employee's pay stub:Gross |
| requires you to use the Federal "K-4 Employee | | | | and Net Earnings |
| Withholding Exemption Certificate" form to calculate | | | | purpose of deductionsKentucky requires that |
| state income tax withholding.Not all states allow salary | | | | employee be paid no less often than semimonthly, less |
| reductions made under Section 125 cafeteria plans or | | | | frequently for FLSA-exempt employees.Kentucky |
| 401(k) to be treated in the same manner as the IRS | | | | requires that the lag time between the end of the pay |
| code allows. In Kentucky cafeteria plans are not | | | | period and the payment of wages to the employee |
| taxable for income tax calculation; taxable for | | | | not exceed eighteen days.Kentucky payroll law |
| unemployment insurance purposes. 401(k) plan | | | | requires that involuntarily terminated employees must |
| deferrals are not taxable for income taxes; taxable for | | | | be paid their final pay with in later of next regular |
| unemployment purposes.In Kentucky supplemental | | | | payday or 14 days and that voluntarily terminated |
| wages are required to be aggregated for the state | | | | employees must be paid their final pay later of next |
| income tax withholding calculation.You must file your | | | | regular payday or 14 days.Deceased employee's |
| Kentucky state W-2s by magnetic media if you are | | | | wages must be paid when normally due to the |
| have at least 250 employees and are required to file | | | | surviving spouse or custodian of minor children if there |
| your federal W-2s by magnetic media.The Kentucky | | | | is no will and estate is not over $15,000.Escheat laws in |
| State Unemployment Insurance Agency is:Department | | | | Kentucky require that unclaimed wages be paid over |
| for Employment Services | | | | to the state after seven years.The employer is further |
| 275 E. Main St., 2nd Fl. E. | | | | required in Kentucky to keep a record of the wages |
| Frankfort, KY 40621 | | | | abandoned and turned over to the state for a period |
| (502) 564-2900 | | | | of 5 years.Kentucky payroll law mandates no more |
| State of Kentucky taxable wage base for | | | | than $3.02 may be used as a tip credit.In Kentucky the |
| unemployment purposes is wages up to | | | | payroll laws covering mandatory rest or meal breaks |
| $8000.00.Kentucky requires Magnetic media reporting | | | | are that employees must have a reasonable meal |
| of quarterly wage reporting if the employer has at | | | | period within 3-5 hours after shift starts; 10-minute rest |
| least 250 employees that they are reporting that | | | | each 4 hours; minors: 30-minute meal period after 5 |
| quarter.Unemployment records must be retained in | | | | hours.Kentucky statute requires that wage and hour |
| Kentucky for a minimum period of six years. This | | | | records be kept for a period of not less than one year. |
| information generally includes: name; social security | | | | These records will normally consist of at least the |
| number; dates of hire, rehire and termination; wages by | | | | information required under FLSA.The Kentucky agency |
| period; payroll pay periods and pay dates; date and | | | | charged with enforcing Child Support Orders and laws |
| circumstances of termination.The Kentucky State | | | | is:Child Support Enforcement Commission |
| Agency charged with enforcing the state wage and | | | | Office of the Attorney General |
| hour laws is:Labor Cabinet | | | | 700 Capitol Ave., Ste. 118 |
| Division of Employment Standards, | | | | Frankfort, KY 40601 |
| Apprenticeship and Training | | | | (800) 248-1163 |
| 1047 U.S. 127 South, Ste. 4 | | | | has the following provisions for child support |
| Frankfort, KY 40601-4381 | | | | deductions:When to start Withholding? Order specifies |
| (502) 564-3070 | | | | date to begin. |
| minimum wage in Kentucky is $5.15 per hour.The | | | | When to send Payment? Date noted in order. |
| general provision in Kentucky concerning paying | | | | When to send Termination Notice? "Promptly." |
| overtime in a non-FLSA covered employer is one and | | | | Maximum Administrative Fee? $1 per payment. |
| one half times regular rate after 40-hour | | | | Withholding Limits? 50% of disposable earnings. |
| week.Kentucky State new hire reporting requirements | | | | Please note that this article is not updated for |
| are that every employer must report every new hire | | | | changes that can and will happen from time to |
| and rehire and job refusals. The employer must report | | | | time.Charles J. Read, CPA has been in the payroll, |
| the federally required elements of:Employee's name | | | | accounting and tax business for 30 years, the last |
| Employee's address | | | | fifteen in private practice. Mr. Read is the author of |
| Employee's social security number | | | | "How to Start a New Business".For Professional |
| Employer's name | | | | Payroll services at a Budget Price go to a Paperless |
| Employers address | | | | Payroll Company.Go to For a full service payroll |
| Employer's Federal Employer Identification Number | | | | service bureau with CPA's on staff.See an excerpt of |
| (EIN) This information must be reported within 20 days | | | | Mr. Read's interviews from William Shatners |
| of the hiring or rehiring. | | | | "Heartbeat of America" television show on the |
| The information can be sent as a W4 or equivalent | | | | websites linked above. |
| by mail, fax or electronically. | | | | |