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Kentucky Payroll Instructions

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Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2008 Payroll Tax Table Updates

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Kentucky has state income tax withholding. The withholding formulas did not change in 2008 (tax rates have changed in 8 of the past 18 years). Payroll withholding tax amounts are calculated from a tax table that is similar to the federal 'step' tables. There is a $20 annual credit that is applied after tax is computed..

HINT-- Turtle Creek Software provides free annual updates for US federal and Kentucky tax withholding rates.

Kentucky State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field (see note below).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of Kentucky dependents into the State Exemptions field.
  7. Enter the Kentucky Tax Package into the Tax Package field. HINT-- If you don't see it in the list, you'll need to import the tax info first.
  8. Click OK.

Kentucky State Unemployment Tax Instructions

Kentucky state unemployment tax is calculated on the first $8,000 of wages for each employee. For new companies, the starting rate is 2.7%. After the first year, the rate is different for each company, based on past hiring experience.

To enter your Kentucky SUTA tax rate into the Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items. Locate the Kentucky SUTA tax in the list, and double-click on it. HINT: If you don't see SUTA in the list, you'll need to import the Kentucky payroll info first.
  3. Enter your business SUTA percentage to the right of Calculation method.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Kentucky Marital Status

Enter one of the following values in the Marital Status field for each employee:

  • Single- single employee with one personal exemption
  • Married- married employee with two personal exemptions
  • Dual Income- married employee with one personal exemption
  • Head of House- employee claims Head of Family status
  • Other- not used


Kentucky Tax Contacts

Payroll Tax Office-- 502 564-4580
Forms-- 502 564-3658
SUTA-- 502-564-2900 or 502 564-2272

Kentucky Property & Mail Services
Revenue Cabinet
859 E Main
Frankfort KY 40620

Official State Lawn Ornament

Race horse.