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Kentucky Payroll Tax

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Caroline White
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Which tax forms does OnPay file?

Withholding: Form K-1: Monthly Withholding Return and Form K-3: Annual Reconciliation

Unemployment: Kentucky Quarterly Tax and Wage Report

What information does OnPay need?

  1. Kentucky State Tax ID: 6 digit Number - Example: 123456
  2. Kentucky State Unemployment Tax ID: 8 or 9 Digit Number - Example: 00-123456-7 or 00-123456A-7
  3. Kentucky Unemployment Rate
  4. Kentucky Office of Employment and Training Password: This password is mailed to you. We will need this password in order to file and pay your quarterly unemployment.

Where do I enter the information in OnPay?

  1. Login to OnPay 
  2. Select the Settings menu icon 
  3. Select Payroll Tax 
  4. View/Update your Withholding Tax ID, Withholding Tax Deposit Schedule, Unemployment Tax ID, Unemployment Rate (as a %), and any local tax IDs as required. 

I am an existing Kentucky employer, where can I find this information?

If you are an employer with a history of payroll in Kentucky you have likely obtained the IDs and online accounts necessary for OnPay to process your tax filings.

Kentucky Department of Revenue: (502)-564-7287

Withholding Tax Account Number: Existing employers can find their Withholding Tax Account number on any return (K-1, K-1E, K-3 and K-3E) received from the KY DOR.

Kentucky Office of Employment and Training: (502)-564-2272

Unemployment Account Number: Existing employers can find the Unemployment Account Number on the following forms:

  • Tax Rate Notice 
  • Quarterly Contribution and Wage Report (Form UI-3).

Unemployment Tax Rate: This can be found on your KY Notice of Contribution Rate.

I am a new employer, Do I need to register for Kentucky taxes?

  • Do you have a business and/or employees residing in the State of Kentucky?
  • Have you processed payroll in OnPay and have received warnings stating we are missing tax information?
  • Have you received an email from an OnPay Tax Agent requesting certain Kentucky information?

    If you answered yes to any of the questions above, you should continue with the registration and setup steps below. 

Which Kentucky agencies should I register for?

  • Kentucky Department of Revenue: You will need to register with this department if you have employees that both live and work in Kentucky, or for any employees that calculate Kentucky withholding taxes regardless of there they live/work. if your business is located outside of Kentucky, but your employees work or live in Kentucky you will likely need to register with this agency.

  • Kentucky Office of Employment and Training: You will need to register with this department if you have employees that work in Kentucky. If your business is located out of the state, but some of your employee's primary work location is in Kentucky, you will likely need to register with this agency.

    OnPay will use both the home address for each employee, plus the worksite assigned to each employee to decide which taxes should be calculated. OnPay uses reciprocity agreements between states to help decide where a certain employee's taxes are calculated according to those addresses. 

How do I register with the state?

**If you have liabilities or employees for more than one state please follow the instructions found in the knowledge base for each state.**

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