2025 YEAR END
Withholding
Withholding requirements
Employees must fill out Form K-4.
Supplemental rate
The rate is calculated by adding it to regular wages from current or preceeding payroll period, computing tax on total, and subtracting taxes withheld from regular wages.
State Unemployment Insurance (SUI)
Wage base
$11,700
Contributions
- General Rate Range for experienced employers:
0.3% to 9.0%, based on the employer’s experience rating and the current Rate Schedule A - New Employers (Non-Construction):
Assigned a rate of 2.7% - New Construction Employers:
Assigned a rate of 9.0%
More information
Kentucky uses Rate Schedule A for 2025, which includes detailed brackets based on the employer’s reserve ratio. Rates range from 0.0% to 9.0%, depending on financial adequacy and claims history
Labor
Minimum wage
$7.25
Termination Pay
- Under Kentucky Revised Statutes 337.055, when an employee is terminated or resigns, the employer must issue the final paycheck:
- By the next regular payday, or
- Within 14 days of termination, whichever is later
- This applies to all earned wages, including:
- Regular pay
- Overtime
- Commissions and bonuses
- Accrued vacation (if company policy allows)
More information
- Tipped employees must receive at least $2.13/hour in direct wages, and employers may take a tip credit of up to $5.12, provided total earnings (wages + tips) meet or exceed $7.25/hour.
- Youth wage: Workers under 20 may be paid $4.25/hour during their first 90 days of employment.
New Hire Filing
Reporting deadline
Within 20 days of employee hiring, rehiring, or returning to work.
Reporting online
Reporting by mail
You can mail completed forms to:
Kentucky New Hire Reporting Center
P.O. Box 3818
Dublin, OH 43016 2
You may also fax the form to: 1-800-817-0099
New hire reporting form
Child Support
Online payments
More information
Kentucky Child Support Enforcement
P.O. Box 14059
Lexington, KY 40512-4059
Be sure to include:
- Your name
- Child Support IV-D number
- Any other identifying information required by your case
Other
New employer registration
Local taxes
Kentucky does have local taxes, known as Occupational License Taxes, which vary by city and county.
Rates range from 0.01% to 2.5%, depending on the locality.
Employers must register and withhold these taxes if operating in affected jurisdictions.
Reciprocal states
Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, and Wisconsin.
Disability insurance
N/A
Helpful links
Last Updated
09/18/2025
States
The information provided here should not be considered legal or accounting advice nor should it substitute for legal, accounting, and other professional advice. If you require legal or accounting advice, you should always consult your licensed attorney, accountant, or other professional to discuss the facts of your particular situation.
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