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Depositing and Reporting Withheld Taxes: Kentucky

Depositing and Reporting Withheld Taxes requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

  • Employers report and pay withheld Kentucky income tax annually, quarterly, monthly or twice monthly. Employers that accumulate $100,000 or more in tax during any reporting period must remit the payment within one banking day regardless of the reporting and payment frequency currently used. Required reporting forms are mailed to employers by the Kentucky Department of Revenue (DOR) at the end of each reporting period. See Deposit Thresholds and Schedules; Forms.
  • Employers must follow a set schedule for income tax depositing and filing. If the due date falls on a Saturday, Sunday or legal holiday, the deposit is due on the next business day. Penalties are imposed for noncompliance. See Deposit and Filing Due Dates.
  • An employer whose average monthly income tax withholding exceeds $25,000 must submit tax payments via Electronic Funds Transfer (EFT). See Electronic Deposit Requirements.
  • All employers must file an annual reconciliation return by January 31. See Annual Reconciliation Forms and Filing Deadlines.
  • Employers that issue 100 or more Forms K-2, Wage and Tax Statement, annually must submit the forms on magnetic media. Employers that issue fewer than 100 forms annually are encouraged to file on magnetic media. See Electronic and Magnetic Media Form W-2 Reporting Requirements.