Kentucky New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- If you don’t already have one, you will need to apply for an Employer Identification number (also known as an EIN or FEIN). The simplest way is to apply for an EIN is with the IRS online. There is no cost to apply for an EIN.
- To read more about applying for EINs, read our help article, “Your Step-by-step Guide on How to Apply for EIN”
- Although it is not mandatory, we recommend you enroll in EFTPS (Electronic Federal Tax Payment System). You can easily register online. You will need to have this account to make tax payments online or view whatever tax filings have been made on your behalf by Patriot.
- To find out more about the EFTPS, read our article, “What Is EFTPS?”
State of Kentucky Tax Accounts:
- Register your business with the Kentucky Department of Revenue to receive an employer’s withholding tax account number.
- Businesses with existing tax accounts that need to register for additional accounts must use Form 10A104, Kentucky Tax Registration Application. You can fax the form to 502-227-0772, email it to DOR.Registration@ky.gov, or mail it to:
Kentucky Department of Revenue
Division of Registration
501 High Street, Station 20
Frankfort, KY 40601
- You will also need to register with the Kentucky Office of Employment and Training for a state unemployment tax account number. You can open a Kentucky Unemployment Tax account by applying online.
- Kentucky new employer SUTA tax rate is 2.7% for 2022.
- You will be issued a Notice of Contribution Rate annually, indicating your new rate and containing the information used in calculating it. These notices are normally issued during the middle of December.
- For more information on state unemployment tax, check out our article, “What Is SUTA Tax?“
- You will need to register your business with any local tax agencies where you do business. You can find information about tax agencies on your county or city’s website.
Setting Up Your New Employee:
- Have your new employee fill out Form W-4, Employee’s Withholding Certificate for federal income taxes (FIT).
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know”
- Have your new employee fill out Form K-4 for Kentucky payroll withholding exemptions.
- Be sure you have met the minimum wage requirements. Kentucky employers must follow the federal minimum wage rate of $7.25 per hour.
- You need to display the minimum wage poster where your employees can read it.
Once you have all the necessary information, you will be able to set up your payroll for your business.
Please note, as an employer you will be required to keep employee payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions. We are here to help!