Kentucky has state income tax withholding. The standard deduction changed in 2023. (tax formulas changed in 19 of the past 33 years, mostly on even years)
Kentucky withholding formulas changed signficantly back in 2019. It's now a flat 5% tax rate for everyone, instead of a graduated tax table. Just one standard deduction. We still use a two-step table so it's easier to go back, in case the Kentucky legislature changes their mind. Both steps just calculate the flat tax amount.
HINT: TurtleSoft provides free annual updates for US federal and Kentucky tax withholding rates.
Kentucky State Withholding Instructions
To enter withholding information for an employee in your Goldenseal company file, follow these steps:
Kentucky State Unemployment Tax Instructions
Kentucky state unemployment tax is calculated on the first $10,800 of wages for each employee (2023 cutoff limit). It has jumped back and forth between that rate and a $11,100 cutoff. The cutoff is scheduled to gradually increase to $12,000.
For new companies, the starting rate is 2.7%. After the first year, the rate is different for each company, based on your past hiring experience.
To enter your Kentucky SUTA tax rate into Goldenseal payroll software, follow these steps:
Kentucky Marital Status
Enter one of the following values in the Marital Status field for each employee:
State Tax Contacts
Official State Lawn Ornament
Horse droppings.
Goldenseal Payroll Software Info | US Federal Withholding Tables | Free 2023 Payroll Tax Table Updates
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