Kentucky Payroll Laws: Everything You Need To Know

Do you own a business in Kentucky? If so, it’s important to make sure you are aware of the state’s payroll laws. In this article, we will discuss the most important aspects of Kentucky payroll laws, including withholding taxes, unemployment insurance, and workers’ compensation.

What should I know about this?

Withholding Taxes

All employers in Kentucky should withhold state income tax from their employees’ wages. The amount of tax that is withheld depends on the employee’s filing status and withholding allowances. Employees can claim additional withholding allowances on their W-Four form if they have dependents or certain other deductions.

Unemployment Insurance

In Kentucky, employers must pay unemployment insurance taxes. These taxes are used to fund the state’s unemployment compensation program, which provides benefits to workers who lose their jobs through no fault of their own. Employers are required to pay unemployment insurance taxes on the first $8000 of each employee’s wages.

Workers’ Compensation

Kentucky requires all employers to provide workers’ compensation insurance for their employees. Workers’ compensation insurance provides benefits to employees who are injured or become ill as a result of their job. Employers are required to pay workers’ compensation insurance premiums based on the number of employees they have and the type of work they do.

Payroll Taxes

Employers in Kentucky are required to withhold federal and state income taxes from their employees’ wages. Employees are also required to pay social security and Medicare taxes. In addition, employers are required to pay unemployment insurance taxes and workers’ compensation insurance premiums.
We hope this information has been useful to you.