Kentucky Revised Statute Chapter 141 requires employers to withhold income tax for both residents and nonresidents employees (unless exempted by law). Employers must withhold the income tax of the employees receiving "wages" as defined in Section 3401(a) of the Internal Revenue Code.
What's New for 2018 Withholding Statement Reporting
Form K-4 - Kentucky Withholding Certificate: Kentucky recently enacted a new flat 5% income tax rate. Due to this change all Kentucky wage earners will be taxed at this rate with an allowance for the standard deduction. The new Form K-4 is only required to be completed by an individual declaring exemption status or by an individual requesting additional withholding per pay period. All prior Forms K- 4 are obsolete.
Form K-4, as well as the updated withholding tax tables and formula, may be found in the "Current Withholding Tax Forms" section below.
Electronic Filing Threshold Lowered: Effective January 1, 2018, Kentucky's tax law lowered the electronic filing requirement from 100 to 26 withholding statements (Forms W-2, W-2G, and 1099 Series). Therefore, employers and payers issuing 26 or more Forms W-2, W-2G, or 1099 Series are required to file electronically.
The deadline for reporting the withholding statement information to DOR is January 31, 2019. No extensions will be granted.
Note: As in prior years, W-2 data files must be submitted in the Social Security Administration's EFW2 format with state RS Records defined by DOR. W-2G and 1099 Series data files must be submitted in the IRS Publication 1220 format with state B Records defined by DOR.
Also, the Transmitter Report (Form 42A806) is now only used for CD submissions of wage statement electronic data files.
Form K-5 - Kentucky Employer's Report of Withholding Tax Statements: Employers and payers issuing 25 or fewer withholding statements (Forms W-2, W-2G, and 1099 Series) must file Form K-5 or submit the information in the accepted electronic format. Paper copies of withholding statements should not be mailed to the DOR.
Paper copies of Forms W-2, W-2G, and 1099 Series received by DOR will not be processed and will not be considered filed. Retain the forms for your records and only provide copies upon request.
You will be able to electronically file Form K-5 by clicking the
Submit button online, or you may print and mail the completed K-5 to the address on the form. The 2018 Form K-5 accepted version will be available on or before January 1, 2019.
Note: Form K-5 may be used to report more than 25 statements (W-2, W-2G, or 1099). However, clicking Submit to file electronically is required.
Blank W-2 Forms Are No Longer Available from DOR: These forms may be ordered from the IRS or purchased at an office supply store.
Provided below is a list of software vendors who will electronically file your state and federal Wage and Tax Statement information and then mail Wage and Tax Statements to your employees. (Fees may apply.) To be redirected to their sites, please click on their logo below.