Commercial Drywall Contractors Kentucky Withholding
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FAQ
Regardless of their filing status, Kentuckians are taxed at a flat rate of 5%. The state previously had progressive tax rates ranging from 2% to 6%, but changed to a flat rate system during a tax reform in early 2018. You also have to pay local income taxes, which Kentucky calls occupational taxes.
Employers must withhold local taxes from employees' pay for work performed within the local jurisdiction. Tax rates vary and generally range from about 0.5 to 2.5 percent.
Effective , Kentucky's tax law requires employers filing on a twice monthly and monthly frequency to electronically file and pay the income tax withheld for periods beginning on or after January 1, 2021. (103 KAR 0) To register and file online, please visit wraps.ky.gov.
Register online with the KY Dept of Revenue to receive a Withholding Account Number. Registration may also be completed via the Kentucky Registration Application (10A100). Please visit the Kentucky DOR Tax Registration Information page or additional resources or call the KY DOR at (502) 564-4581.
Annual wages minus the Kentucky standard deduction equals annual Kentucky wages. Compute tax on wages using the 5% Kentucky flat tax rate to determine gross annual Kentucky tax. Divide the gross annual Kentucky tax by the number of annual pay periods to determine the Kentucky withholding tax for the pay period.
