Kentucky payroll tax and registration guide

  • Updated

Why is this important?

To maintain compliance with state payroll tax regulations, you must provide the following information before you can use OnPay to run payroll:

  • State Employer Identification Number and state/local tax IDs
  • Tax rates - State tax offices set these rates based on the type, age, and size of your business
  • TPA and power of attorney - Most tax offices require this before we can submit quarterly wage reports and deposits on your behalf

This information must be provided and maintained by you in order for OnPay to accurately file and deposit tax payments for your company. OnPay is not responsible for any penalties or interest that incur due to missing or incorrect company tax information.

Each state has its own requirements, so if you pay employees in more than one state, you’ll find separate tax guides for each state.

Let Middesk handle your state tax registrations

Want help registering your business with state agencies? We've partnered with Middesk to make it simple for you to stay compliant in your state — and every state — when hiring employees.

  • Register with state agencies and get the tax IDs you need within minutes
  • Manage all your government accounts in one place using Middesk's intuitive platform
  • Stay compliant by managing agency mail and notices from your Middesk dashboard
  • Foreign Qualify with the Secretary of State to create payroll tax accounts 

Learn more about Middesk

 

See what information you need to provide OnPay, and what taxes and filings OnPay handles for Kentucky Employers.

  • Information OnPay needs from you

    Use this checklist to make sure you’ve covered everything required to set up your account as a Kentucky employer, so OnPay can accurately file and pay taxes on your behalf:

    All Kentucky employers What is this?
    Make sure your business is registered with the Kentucky Department of Revenue

    Registers your business to file and pay taxes in Kentucky

    More info >

    Make sure your business is registered with the Kentucky Office of Employment Training

    Registers your business to pay required unemployment insurance in Kentucky

    More info >

    Provide OnPay with your Kentucky Tax ID and deposit frequency

    This 6 to 9-digit number is issued by the Kentucky Department of Revenue

    More info >

    Provide OnPay with your Kentucky Employer Identification Number for State Unemployment Insurance

    A unique ID assigned by the Kentucky Office of Employment Training

    More info >

    Provide OnPay with Local Tax IDs

    Some Kentucky counties have local tax codes for business that operate there

    More info >

    Provide OnPay with your Kentucky Unemployment (SUI) Rate

    A tax rate you receive annually from the Kentucky Office of Employment Training
    More info >

  • Taxes and filings OnPay handles for Kentucky Employers

    Withholding Tax

    Form K-1
    (Filing)

    Employer's Withholding Tax - Return

    - Semi-monthly, Monthly, & Quarterly

    Form  K-3
    (Filing)

    Employer's Return of Income Tax Withheld (annual reconciliation)

    - Quarterly

    K-5 (Filing)

    Transmittal for Forms W-2

    - Annual

    K-2 (Filing)

    Wage and Tax Statement

    - Annual

    Unemployment Insurance Tax

    UI-3 (Filing)

    Kentucky Quarterly Tax and Wage Report

    - Quarterly

    Other

    New Hire Report (Filing)

    Kentucky Report of New Hires

    - As required


Where you can find the tax account numbers you need

If you are an existing employer who has previously run payroll in the state of Kentucky, you likely already have the IDs and online accounts needed for OnPay to process your tax filings.

If you are a new employer in Kentucky, you will need to register your business with the Department of Revenue and the Kentucky Office of Employment and Training. This must be completed for OnPay to be able to file and pay your Kentucky taxes.

 

Withholding Tax ID

Existing Kentucky Employer: 

You can find your Withholding Tax ID on notices received from the Kentucky Department of Revenue. This ID may be 6 digits, or 9 digits long, depending on when your business was registered with the state. If you cannot locate this document or account number, please call the Kentucky Department of Revenue at (502)-564-7287 to request it.

New Kentucky Employer: Register with the Kentucky Department of Revenue 

  • Visit the Kentucky Department of Revenue and click “Create New Account”
  • The Kentucky Online Gateway provides single sign-on access to services within the Commonwealth
  • New employers are assigned a 9-digit Withholding Tax ID

 

Unemployment Tax ID and Tax Rate

Existing Kentucky Employer: 

  • You can find your Unemployment Tax ID on the annual Tax Rate Notice received from the Kentucky Office of Employment and Training. It can also be found on your Kentucky Quarterly Tax and Wage Report. 
  • Your Unemployment Tax Rate can also be found on the annual Tax Rate Notice in box 2. 

New Kentucky Employer: Register with the Kentucky Office of Employment Training

  • Go to the Kentucky Office of Employment Training to register your business.
  • You'll receive your account number and tax rate instantly once you have completed the online registration.
  • Generally, the UI rate for a new employer is 2.70% (9% for construction), with a wage base of $11,100.

 

Local Tax ID and Rate

  • Some Kentucky counties and jurisdictions may have their own local tax codes to follow. If you operate or pay employees who live in any of these counties, you may have a Local Tax ID for that county, too.
  • Not all counties have a Local Tax ID. Some Locals, like Franklin County, use your Employer Identification Number (EIN). 
  • You can also refer to the Kentucky Secretary of State's webpage to see if you're subject to local occupational taxes.

 

Paying employees in other states?

If you operate in multiple states or just have employees working from home across a state line, it's important to file the correct state forms for those workers. See what forms we file in the states where you pay employees.

 

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