...
Summary of differences between federal and state regulations
Income tax withholding
For Kentucky withholding tax purposes, the terms wages, employee and employer mean the same as defined in Section 3401 of the Internal Revenue Code in effect December 31, 2001. Therefore, wages or other payments made for services performed in Kentucky, which are subject to withholding of federal income tax, are subject to Kentucky withholding.
Employers report and pay Kentucky withholding tax annually, quarterly, monthly or twice monthly. Employers who accumulate $100,000 or more tax during any reporting period must remit payment within one banking day. Regardless of the reporting and payment frequency, returns issued to employers must be filed even though no Kentucky income tax was withheld during that period.
Unemployment taxes
All states finance UC primarily through contributions from subject employers on the wages of their covered workers. In addition, three states (Alaska, New Jersey, and Pennsylvania) collect contributions from employees. These taxes are deposited by the state to its account in the UTF in the Federal Treasury, and are withdrawn as needed to pay benefits.
Many states have adopted a higher tax base than what is provided in FUTA. Hawaii's wage base is usually higher and changes periodically. In all states, an employer pays a tax on wages paid to each worker within a calendar year up to the amount specified in state law. In addition, most of the states provide an automatic adjustment of the wage base if federal law is amended to apply to a higher wage base than that specified under state law. As a result of the many variables in states taxable wage bases and rates, benefit formulas, and economic conditions, actual tax rates vary greatly among the states and among individual employers within a state.
Wages subject to unemployment tax in this state equal $8,000.
Minimum and maximum rates in this state are 0.3 and 10.0 %. Rates apply to experience rated employers only and do not include applicable surtaxes or penalties.
State
ContactsIncome tax withholding
Department of Revenue
Unemployment taxes
Kentucky Office of Employment and Training
www.kewes.ky.gov/
RegulationsIncome tax withholding
Title 103 Chapter 18 Income Tax Withholding
www.lrc.state.ky.us/kar/TITLE103.HTM
Unemployment taxes
KRS Chapter 341.00
www.lrc.ky.gov/Statutes/chapter.aspx?id=38902
Federal
ContactsInternal Revenue Service
Regulations Title 26 Code of Federal Regulations, Internal Revenue