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Taxes
Kentucky Payroll Taxes 2026: Complete Overview for Employers
Kentucky flat 4% income tax, SUI on $11,100, and all employer obligations.
Practical, accurate resources for Kentucky small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
Kentucky flat 4% income tax, SUI on $11,100, and all employer obligations.
How to register with Kentucky Department of Revenue and Kentucky Education and Labor Cabinet as a new Kentucky employer.
New employer rate 2.7%, experienced range 0.30%–9.00%, wage base $11,100.
Kentucky minimum wage is $7.25/hr. Kentucky’s minimum wage is $7.25/hr, matching the federal rate. Tipped employees may be paid $2.13/hr.
Semi-monthly pay required. Final pay: Final wages are due by the next regular payday or within 14 days of separation, whichever is later..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, Kentucky-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and Kentucky new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and Kentucky recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for Kentucky small businesses.
Federal OT after 40 hrs/week, Kentucky overtime rules, exemptions, salary thresholds.