Updated September 18, 2023
This article will cover:
- What information OnPay needs from you
- What state and local taxes and filings OnPay handles for Kentucky employers
- Where you can find the tax account numbers needed
- Paying employees in other states?
Why is this important?
The following information requests and registration instructions are required before you can use a payroll provider to run payroll. This is in compliance with state payroll tax regulations. Without this information, OnPay is unable to file or deposit any tax payments for your company, and will not be responsible for any resulting penalties or interest. Note: If this isn't the only state where you have employees, there will be a separate guide like this one for each state where you hire and pay workers.
Let Middesk handle your state tax registrations (and more)
If you'd like help, our partner Middesk makes hiring employees and staying compliant with every state agency simple and easy.
- Register with every state agency to get the tax IDs you need within minutes
- Stay compliant as you grow by managing agency mail and notices in your dashboard
- Manage your government accounts in one place on Middesk's intuitive platform
- Foreign Qualify with the Secretary of State to create payroll tax accounts
Learn more about Middesk→
What 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:
|
✔ |
To do: |
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 |
|
|
Make sure your business is registered with the Kentucky Office of Employment Training |
Registers your business to pay required unemployment insurance in Kentucky |
|
|
Provide OnPay with your Kentucky Tax ID and deposit frequency |
The employer identification number is issued by the Kentucky Department of Revenue |
|
|
Provide OnPay with your Kentucky Unemployment ID |
A 6-digit number unique to your account with the Kentucky Office of Employment Training |
|
|
Provide OnPay with Local Tax IDs |
Some Kentucky counties have local tax codes for business that operate there |
|
|
Provide OnPay with your Kentucky Unemployment (SUI) Rate |
A tax rate you receive annually from the Kentucky Office of Employment Training |
What state and local taxes and filings OnPay handles for Kentucky employers
OnPay handles the filing of all state and local taxes for businesses in Kentucky, including:
|
Type of Tax |
Form ID |
Form Name |
Frequency |
|
Withholding |
Form K-1 (Filing) |
Employer's Withholding Tax - Return |
Semi-monthly, Monthly, and Quarterly |
|
Form K-3 (Filing) |
Employer's Return of Income Tax Withheld (annual reconciliation) |
Annual |
|
|
K-5 (Filing) |
Transmittal for Forms W-2 |
Annual |
|
|
K-2 (Filing) |
Wage and Tax Statement |
Annual |
|
|
Unemployment |
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 needed
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. 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 An Account”.
- The Kentucky Online Gateway provides single sign-on access to services within the Commonwealth.
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.