If you’re a business owner in Kentucky, it’s important to know the state’s payroll laws. Knowing the basics of Kentucky payroll laws will help you stay compliant with state regulations and avoid costly fines.
What should I know about this?
Kentucky’s payroll laws are governed by the Kentucky Department of Revenue (DOR). The DOR is responsible for collecting state taxes, including payroll taxes. Employers in Kentucky are required to withhold state income tax from their employee’s paychecks and remit the withheld taxes to the DOR.
In addition to withholding state income tax, employers in Kentucky are also required to withhold federal income tax from their employee’s paychecks. The federal income tax withholding rate in Kentucky is currently six percent.
Employers in Kentucky are also required to pay unemployment insurance taxes. Unemployment insurance taxes help fund the state’s unemployment compensation program, which provides financial assistance to workers who lose their jobs through no fault of their own.
We hope this information has been useful to you.