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.
Updated Form K-4 and Withholding Tables
Due to Kentucky's recent adoption of a flat 5% individual tax rate, updated 2018 withholding tables and Form K-4 are provided below. Also, effective January 1, 2018, Kentucky's tax law decreased the electronic filing limit of withholding statements (Forms W-2, W-2G, 1099 series) from 100 to 25.
2018 Employer Withholding Tax Calculator
DOR has created a withholding tax calculator for 2018 to assist employers in computing the correct amount of Kentucky withholding tax for employees. The calculator was developed in a spreadsheet format so employers may use it for multiple employees.
2018 Employer Withholding Calculator.xlsx