Withholding Tax

Kentucky Law 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.

Kentucky Withholding Tax Laws are located in Chapter 141 of the Kentucky Revised Statutes. 

K-4E SPECIAL WITHHOLDING EXEMPTION CERTIFICATE

Employers:  The Kentucky Department of Revenue strongly encourages all employers to utilize Form K-4E, Special Withholding Exemption Certificate when applicable.

This certificate should be completed by employees that anticipate no Kentucky Income Tax liability.  If the employee is eligible to claim this exemption, the employer will not withhold Kentucky income tax from wages.  This certificate may be used instead of Form K-4 by those employees qualified to claim the exemption. 

To download the form along with instructions click on Current Year – Withholding Tax Forms

 IMPORTANT NOTICE

The Kentucky Employer's Return of Income Tax Withheld, forms 42A801- (K-1), 42A803- (K-3), 42A801E -(K-1E), and 42A803E -(K-3E) are not available online or by fax. The forms are scannable forms for processing purposes.  Failure to use the original forms delay processing, could lead to transposition errors and may cause your return to be considered late.  If the original is lost, please call (502)564-7287, or visit one of the Department of Revenue's offices for replacement.

Downloadable forms & instructions.

Withholding Tax Instructions for Employers - Form 42A003 (7118K)

Current Year - Withholding Tax Forms

Prior Years - Withholding Tax Forms

2009 Withholding Tables

2009 Computer Formula (Optional Withholding Method) (14K)

2009 Daily Withholding Table (37K)

2009 Weekly Withholding Table (45K)

2009 Bi-Weekly Withholding Table (45K)

2009 Semi-Monthly Withholding Table (45K)

2009 Monthly Withholding Table (45K)

2008 Withholding Tables

2008 Computer Formula (Optional Withholding Method) (31K)

2008 Daily Withholding Table (48K)

2008 Weekly Withholding Table (32K)

2008 Bi-Weekly Withholding Table (61K)

2008 Semi-Monthly Withholding Table (61K)

2008 Monthly Withholding Table (61k)

2007 Withholding Tables

2007 Computer Formula (Optional Withholding Method) (12K)

2007 Daily Withholding Table (25K)

2007 Weekly Withholding Table (30K)

2007 Bi-Weekly Withholding Table (30K)

2007 Semi-Monthly Withholding Table (31K)

2007 Monthly Withholding Table (31K)

Department of Revenue allows employers to submit wage and tax information via the internet as an alternative method of submitting the Report of Employees Annual Wage and Tax Information. This method is offered at no cost to the employer. Regulation 103 KAR 18:050, requires employers doing business in Kentucky with 100 or more employees to magnetically or electronically report annual wage and tax information. Submission of Wage and Tax information must be filed on or before January 31.

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