Kentucky payroll laws can be confusing and overwhelming for business owners. However, it is essential to understand them to run your business efficiently.
What should I know about this?
The state’s Kentucky pay law requires employers with one or more employees must make tax withholdings weekly or biweekly (whichever comes first). For example, if an employer has two employees who work on Monday through Friday, each paycheck would need to be issued by Wednesday for that week’s work. Employers may also choose the semi-monthly method where wages paid between the 15th and last day of the month require withholding made no later than 20 days following the end of the month. If you are paid a salary, your employer has the option to withhold taxes every month.
Most Kentucky employees are entitled to receive overtime pay for hours worked over 40 in a week. The most common exceptions to this rule are executive, administrative, professional, and outside sales employees. There is no required meal or rest break under Kentucky law; however, some employers may provide breaks to benefit employment. Employees must be paid their final paycheck within seven days of separation from their job unless terminated for cause.
We hope this information has been helpful to you.