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Payroll Kentucky, Unique Aspects of Kentucky Payroll Law and Practice

The Kentucky State Agency that oversees the
collection and reporting of State incomeThe Kentucky new hire-reporting agency can be
taxes  deducted  from  payroll  checks  is:reached at 800-817-2262 or 804-771-9602 or on
the  web  at
Revenue  Cabinet
Kentucky does not allow compulsory direct
200  Fair  Oaks  Lanedeposit
Frankfort,  KY  40601-1134Kentucky requires the following information
on  an  employee's  pay  stub:
(502)  564-7287
-  Gross  and  Net  Earnings
Kentucky requires you to use the Federal "K-4
Employee Withholding Exemption Certificate"-  purpose  of  deductions
form to calculate state income tax
withholding.Kentucky requires that employee be paid no
less often than semimonthly, less frequently
Not all states allow salary reductions madefor  FLSA-exempt  employees.
under Section 125 cafeteria plans or 401(k)
to be treated in the same manner as the IRSKentucky requires that the lag time between
code allows. In Kentucky cafeteria plans arethe end of the pay period and the payment of
not taxable for income tax calculation;wages to the employee not exceed eighteen
taxable for unemployment insurance purposes.days.
401(k) plan deferrals are not taxable for
income taxes; taxable for unemploymentKentucky payroll law requires that
purposes.involuntarily terminated employees must be
paid their final pay with in later of next
In Kentucky supplemental wages are requiredregular payday or 14 days and that
to be aggregated for the state income taxvoluntarily terminated employees must be paid
withholding  calculation.their final pay later of next regular payday
or  14  days.
You must file your Kentucky state W-2s by
magnetic media if you are have at least 250Deceased employee's wages must be paid when
employees and are required to file yournormally due to the surviving spouse or
federal  W-2s  by  magnetic  media.custodian of minor children if there is no
will  and  estate  is  not  over  $15,000.
The Kentucky State Unemployment Insurance
Agency  is:Escheat laws in Kentucky require that
unclaimed wages be paid over to the state
Department  for  Employment  Servicesafter  seven  years.
275  E.  Main  St.,  2nd  Fl.  E.The employer is further required in Kentucky
to keep a record of the wages abandoned and
Frankfort,  KY  40621turned over to the state for a period of 5
years.
(502)  564-2900
Kentucky payroll law mandates no more than
The State of Kentucky taxable wage base for$3.02  may  be  used  as  a  tip  credit.
unemployment purposes is wages up to
$8000.00.In Kentucky the payroll laws covering
mandatory rest or meal breaks are that
Kentucky requires Magnetic media reporting ofemployees must have a reasonable meal period
quarterly wage reporting if the employer haswithin 3-5 hours after shift starts;
at least 250 employees that they are10-minute rest each 4 hours; minors:
reporting  that  quarter.30-minute  meal  period  after  5  hours.
Unemployment records must be retained inKentucky statute requires that wage and hour
Kentucky for a minimum period of six years.records be kept for a period of not less than
This information generally includes: name;one year. These records will normally
social security number; dates of hire, rehireconsist of at least the information required
and termination; wages by period; payroll payunder  FLSA.
periods and pay dates; date and circumstances
of  termination.The Kentucky agency charged with enforcing
Child  Support  Orders  and  laws  is:
The Kentucky State Agency charged with
enforcing  the  state  wage and hour laws is:Child  Support  Enforcement  Commission
Labor  CabinetOffice  of  the  Attorney  General
Division  of  Employment  Standards,700  Capitol  Ave.,  Ste.  118
Apprenticeship  and  TrainingFrankfort,  KY  40601
1047  U.S.  127  South,  Ste.  4(800)  248-1163
Frankfort,  KY  40601-4381Kentucky has the following provisions for
child  support  deductions:
(502)  564-3070
- When to start Withholding? Order
The minimum wage in Kentucky is $5.15 perspecifies  date  to  begin.
hour.
- When to send Payment? Date noted in
The general provision in Kentucky concerningorder.
paying overtime in a non-FLSA covered
employer is one and one half times regular- When to send Termination Notice?
rate  after  40-hour  week."Promptly."
Kentucky State new hire reporting- Maximum Administrative Fee? $1 per
requirements are that every employer mustpayment.
report every new hire and rehire and job
refusals. The employer must report the- Withholding Limits? 50% of disposable
federally  required  elements  of:earnings.
-  Employee's  namePlease note that this article is not updated
for changes that can and will happen from
-  Employee's  addresstime  to  time.
-  Employee's  social  security  numberCharles J. Read, CPA has been in the payroll,
accounting and tax business for 30 years,the
-  Employer's  namelast fifteen in private practice. Mr. Read
is the author of "Tax and Accounting Issuesin
-  Employers  addressForming  a  New  Business."
- Employer's Federal Employer IdentificationTo find professional payroll services at a
Number (EIN)budget price go to paperless payroll
company.
This information must be reported within 20
days  of  the  hiring  or  rehiring.For a full service payroll bureau with CPA's
on  staff  visit .
The information can be sent as a W4 or
equivalent  by  mail,  fax or electronically.See an excerpt of Mr. Read's interviews from
William Shatner's "Heartbeat of
There is a $250.00 penalty for 3rd and laterAmerica"television show on the web sites
offenses  for  a  late  report  in  Kentucky.linked above.



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