Kentucky Payroll Instructions

For more about Goldenseal payroll accounting software, click here.
For more about US Federal withholding in the Goldenseal payroll software, click here.
To download free updates for Kentucky and federal payroll tax tables, click here.

Kentucky has state income tax withholding. Rates changed in 2004 but not 2005 (they have changed in 7 of the past 15 years). Payroll withholding tax amounts are calculated from a tax table that is similar to the federal 'step' tables.

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

Kentucky Withholding Instructions

To enter withholding information for an employee, follow these steps:

1. Choose Employees from the Accounts menu.
2. Locate the employee record.
3. Enter the employee's marital status into the Marital Status field (see note below).
4. Enter the number of federal dependents into the Federal Exemptions field.
5. Enter the number of Kentucky dependents into the State Exemptions field.

Kentucky Unemployment Tax Instructions

Kentucky state unemployment tax is calculated on the first $8,000 of wages for each employee. 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.

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

Contacts

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

Official State Lawn Ornament

Pink plastic race horse.

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