Kentucky Paycheck Laws
Before providing pay stubs to employees and contractors in Kentucky, it's crucial to understand the state's laws and regulations regarding pay stubs..
This guide outlines the relevant statutes and regulations that employers in Kentucky must adhere to when managing payroll and issuing pay stubs.
Pay stub regulations in Kentucky
1. Are pay stubs required by law in Kentucky?
Employers in Kentucky must provide their employees with pay stubs every payday.
2. How often do you need a pay stub in Kentucky?
You will need to pay your employees on a semi-monthly basis. As pay stubs are mandatory in Kentucky, you will need to provide pay stubs every time you pay your employees.
3. What information can be included on a pay stub in Kentucky?
The following information must be included in employee pay stubs:
- Employee information such as name, last 4 digits of social security number, and address
- Employer information such as name, employer identification number (EIN), and address
- The number of regular and overtime hours worked
- regular rate of pay and total straight-time earnings for all hours worked during the workweek
- Tax deductions
- total additions to or deductions from wages each pay period
- the dates, amounts, and nature of each addition and deduction; and
- total wages paid each pay period and the date of payment
4. Does Kentucky have a state income tax?
Yes, state income taxes are applicable to employees in the state of Kentucky
5. Are there any other taxes applicable to Kentucky?
There are no local taxes imposed in the state of Kentucky.
Information needed to generate pay stubs
To provide employees with accurate pay stubs, the information below is required.
- Employee’s exemption status and additional state withholding amount
Kentucky wage and hour laws
Kentucky employers are required to follow wage and hour regulations, ensuring that non-exempt employees receive at least minimum wage, are fairly compensated for overtime, have adequate meal and rest breaks, and receive appropriate paid time-off benefits.
In Kentucky, these regulations encompass various aspects of employment law
Kentucky Minimum wage
Businesses in Kentucky must legally ensure that their employees are paid at least the minimum hourly wage as mandated by statutory regulations.
As of 2024, the basic minimum hourly rate for workers in Kentucky stands at $7.25.
Kentucky Overtime law
In Kentucky, overtime pay at time and one-half is required for hours worked beyond forty in a workweek. There's also the 7th day overtime law, where employees who work all seven days of a week must receive time and one-half for hours worked on the seventh day, unless they haven't exceeded 40 hours total.
Kentucky Meal break
Employers must ensure that employees are provided with a reasonable period for a meal, typically between the third and fifth hour of their work shift, unless both parties have agreed to a different arrangement. This duty-free meal period is not considered paid time.
Kentucky rest break
Employers must provide their employees with a rest period of at least ten (10) minutes for every four hours worked. This break time is considered paid.
Paid time off and leave
In Kentucky, employers are obligated to offer employees a range of leave benefits, including both mandatory and optional leave.
| Required Leave | Non-Required leave |
|---|---|
| Unpaid | Paid or Unpaid |
| Employers must comply with the Family and Medical Leave Act (FMLA), a federal law requiring them to offer a minimum of 12 weeks of unpaid family leave. | Vacation leave |
| Jury duty leave | Bereavement leave |
| Military leave | Holiday leave |
| Voting leave -atleast 4 hours of unpaid leave | Sick leave |
| Witness leave |
Kentucky State payroll taxes 2024
In Kentucky, payroll taxes are classified into various categories, including:
- Kentucky Personal Income Tax(PIT)
- Kentucky State Unemployment Insurance (UI)
Kentucky Personal Income Tax(PIT)
Kentucky's state personal income tax rates fluctuate based on both an individual's filing status and income level. Filing statuses encompass Single, Married Filing Separately, Married Filing Jointly, and Head of Household.
Annually, the Kentucky Department of Revenue recalculates the individual standard deduction. For 2024, after adjusting for inflation, the standard deduction is set at $3,160, marking a $180 increase. This updated figure will be integrated into 2024 tax forms and should be considered for tax planning purposes.
Furthermore, the individual income tax rate for 2024 has been revised to 4.0%, indicating a reduction of 0.5% compared to the 2023 tax rate.
Kentucky State Unemployment Insurance (UI)
Kentucky enacted the State Unemployment Tax Act (SUTA) to support individuals facing unemployment by providing unemployment benefits. This legislation enables the state to collect the required funds for administering unemployment insurance benefits to eligible individuals during periods of joblessness.
- In 2024, Kentucky's State Unemployment Tax Act (SUTA) rates spanned from 0.30% to 9.00%.
- Additionally, for the year 2024, the taxable wage base for SUTA in Kentucky is $11,400.
Kentucky payroll tax filing
- Report of New hire Employees and independent contractors
- Kentucky personal income tax filing(Form 740,Form 740-NP)
- Employer’s Quarterly Wage and Tax Report(Form UI-3)
Report of New hire Employees and independent contractors
Under the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA), employers must submit new hire reports within 20 days after hiring, re-hiring, or when an employee returns to work. It's strongly advised that other employers report independent contractors by furnishing a copy of their W9 or 1099 form.
How to report employees and independent contractors new hire in Kentucky?
Submitting new hire information in Massachusetts offers several options, allowing for flexibility in the reporting process.
| Online | Fax | |
|---|---|---|
| Employees and independent contractors New Hire Report | Address Information: Kentucky New Hire Reporting Center P.O. Box 141845 Austin, TX 78714 Public Phone: 800-817-2262 | Fax 1: 800-817-0099 |
Kentucky personal income tax filing(Form 740,Form 740-NP)
Kentucky Department of Revenue (DOR) commences accepting state individual income tax returns on Monday, January 29, 2024, and processing begins on February 5. The deadline for filing 2023 returns for Kentuckians is Monday, April 15, 2024. If the due date coincides with a holiday or weekend, returns are due the following working day. Full-year residents of Kentucky file Form 740, while individuals moving into or out of the state during the year or full-year nonresidents file Form 740-NP.
Employer's Quarterly Wage and Tax Report(Form UI-3)
Employers are required to submit a report for each calendar quarter, detailing their employees and wages, and calculate and remit taxes based on their payroll. Reports and payments are due to the Office of Unemployment Insurance (OUI) by the last day of the month following the end of each quarter. If the deadline coincides with a weekend or holiday when state offices or the post office are closed, the due date is shifted to the next open business day. Electronic filing is mandatory for employers with ten or more employees, while those with fewer may choose to file electronically. Alternatively, employers can opt for paper filing by completing Form UI-3.
| Reporting Period | Due Date |
|---|---|
| Quarter 1 | April 30 |
| Quarter 2 | July 31 |
| Quarter 3 | October 31 |
| Quarter 4 | January 31 |
Late reports will be charged penalties. For the first report filed in a calendar year, a $25 penalty is imposed if filed within thirty (30) days of the due date. If filed more than thirty (30) days beyond the due date, an additional $50 is added. For subsequent late reports in the same calendar year, the penalty increases to $125 if filed within thirty (30) days of the due date, with an additional $50 for filings beyond thirty (30) days.
Additionally, late payments will accrue interest at a rate of 1.5% per month or fraction of a month.
Have all the information handy?
With SecurePayStubs, you can calculate accurate federal and Kentucky state taxes for your employees and generate pay stubs securely.
Processing payroll manually is complex
As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.
Using our Paystub Generator, you can swiftly create pay stubs for both your employees, ensuring precise calculation of federal and Kentucky state taxes, and independent contractors, all completed in under 2 minutes. Enter the basic employee and employer information, select a pay stub template for free, and let SecurePayStubs calculate the applicable payroll taxes accurately.
Spend less time generating pay stubs and more on your business growth.
This article has been updated from its original publication date of April 12, 2024.