| The Kentucky State Agency that oversees the | | | | |
| collection and reporting of State income | | | | The 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 Lane | | | | deposit |
| | | | |
| Frankfort, KY 40601-1134 | | | | Kentucky 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 made | | | | for FLSA-exempt employees. |
| under Section 125 cafeteria plans or 401(k) | | | | |
| to be treated in the same manner as the IRS | | | | Kentucky requires that the lag time between |
| code allows. In Kentucky cafeteria plans are | | | | the 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 unemployment | | | | Kentucky payroll law requires that |
| purposes. | | | | involuntarily terminated employees must be |
| | | | paid their final pay with in later of next |
| In Kentucky supplemental wages are required | | | | regular payday or 14 days and that |
| to be aggregated for the state income tax | | | | voluntarily 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 250 | | | | Deceased employee's wages must be paid when |
| employees and are required to file your | | | | normally 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 Services | | | | after 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 40621 | | | | turned 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 of | | | | employees must have a reasonable meal period |
| quarterly wage reporting if the employer has | | | | within 3-5 hours after shift starts; |
| at least 250 employees that they are | | | | 10-minute rest each 4 hours; minors: |
| reporting that quarter. | | | | 30-minute meal period after 5 hours. |
| | | | |
| Unemployment records must be retained in | | | | Kentucky 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, rehire | | | | consist of at least the information required |
| and termination; wages by period; payroll pay | | | | under 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 Cabinet | | | | Office of the Attorney General |
| | | | |
| Division of Employment Standards, | | | | 700 Capitol Ave., Ste. 118 |
| | | | |
| Apprenticeship and Training | | | | Frankfort, KY 40601 |
| | | | |
| 1047 U.S. 127 South, Ste. 4 | | | | (800) 248-1163 |
| | | | |
| Frankfort, KY 40601-4381 | | | | Kentucky has the following provisions for |
| | | | child support deductions: |
| (502) 564-3070 | | | | |
| | | | - When to start Withholding? Order |
| The minimum wage in Kentucky is $5.15 per | | | | specifies date to begin. |
| hour. | | | | |
| | | | - When to send Payment? Date noted in |
| The general provision in Kentucky concerning | | | | order. |
| 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 must | | | | payment. |
| 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 name | | | | Please note that this article is not updated |
| | | | for changes that can and will happen from |
| - Employee's address | | | | time to time. |
| | | | |
| - Employee's social security number | | | | Charles J. Read, CPA has been in the payroll, |
| | | | accounting and tax business for 30 years,the |
| - Employer's name | | | | last fifteen in private practice. Mr. Read |
| | | | is the author of "Tax and Accounting Issuesin |
| - Employers address | | | | Forming a New Business." |
| | | | |
| - Employer's Federal Employer Identification | | | | To 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 later | | | | America"television show on the web sites |
| offenses for a late report in Kentucky. | | | | linked above. |