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