State guide
How to Register for Kentucky Payroll Taxes
Let a dedicated tax manager file your Kentucky registrations with you, or use the step-by-step guide below.
Last updated:
At a glance
2 agencies: Department of Revenue and Office of Unemployment Insurance
2.7% new employer UI rate in 2026
$12,000 UI wage base
New hires due within 20 days
Done for you
Two Kentucky accounts, filed right
Skip the paperwork. Your dedicated PayAdvisors tax manager registers you with the state and gets your tax IDs for you. In Kentucky that means a withholding account with the Kentucky Department of Revenue and an unemployment insurance account with the Office of Unemployment Insurance.
- One tax manager who owns your file
- MyTaxes and KUIP registrations filed with you
- New hire reporting set up for the 20-day rule
- Both account numbers confirmed before payroll
Hands-on help from a real person who knows Kentucky employer accounts. Use it alone or with managed payroll.
Quick answer
Kentucky payroll tax registration at a glance
Kentucky uses two agencies for payroll tax accounts. The Kentucky Department of Revenue (DOR) issues withholding accounts through MyTaxes.ky.gov or the Kentucky Tax Registration Application (Form 10A100). The Office of Unemployment Insurance (OUI) registers employers in KUIP, its new self-service portal.
For 2026, the Kentucky withholding rate is 3.5%. New employers pay a 2.7% UI rate on the first $12,000 of each employee's wages. New hires are reported within 20 days.
Who must register
Who registers in Kentucky
Withholding starts with the first employee.
| Situation | Kentucky requirement |
|---|---|
| One or more employees | Get a Kentucky withholding account number |
| $1,500 or more in gross wages in a calendar quarter, or one worker in any part of 20 weeks in a year (for-profit, non-agricultural) | Liable for UI tax |
| Employees who live in Illinois, Indiana, Michigan, West Virginia, Wisconsin, Virginia (commuting daily) or Ohio | May be exempt from Kentucky withholding with Form K-4, subject to the reciprocity rules |
| One or more employees, including family, temporary and part-time workers | Carry workers' compensation |
Registration steps
How to register in Kentucky
Two registrations.
- Register for withholding online at MyTaxes.ky.gov, or file the Kentucky Tax Registration Application (Form 10A100). DOR assigns an account number and filing frequency.
- Create a KUIP user account, then choose "Employer Registration." KUIP determines whether you are liable for Kentucky UI tax.
- Have your FEIN first. KUIP asks for it, along with the date employees first worked and were first paid in Kentucky.
- Collect Form K-4 from each employee.
- Report each new hire and returning employee within 20 days to the Kentucky New Hire Reporting Center (ky-newhire.com), the Office of the Attorney General's new hire program.
State and local
Two state accounts, plus local taxes
Many Kentucky cities and counties levy their own occupational license tax.
On your own
- MyTaxes and KUIP, two separate sign-ups
- A filing frequency that can change
- Local occupational tax districts
With your PayAdvisors tax manager
- Your tax manager files both with you
- We track it as your payroll grows
- You get one calendar for every filing
Handled by your tax manager.
Prepare
What to collect first
Have these ready before you apply.
- Your FEIN and type of legal entity
- Owner and officer information and your NAICS code
- The date employees first worked in Kentucky and the date you first paid them
- Quarterly gross wages paid to date
- Form K-4 from each employee
Accounts
What you end up with
Two numbers, two agencies.
- A Kentucky withholding account number with an assigned filing frequency.
- A KUIP employer account for quarterly wage reports and UI payments.
Rates
Kentucky 2026 payroll tax numbers
Figures published for 2026.
| Item | Figure |
|---|---|
| State withholding rate | 3.5% (tax year 2026) |
| New employer UI rate | 2.7% |
| UI taxable wage base | First $12,000 per employee |
Pitfalls
Kentucky mistakes to avoid
Most problems are missed returns and late reports.
- Skipping a zero return. Withholding returns are due even when nothing was withheld.
- Filing on paper. All withholding filing frequencies must file and pay electronically.
- Late UI reports. The first late report costs $25 ($75 if more than 30 days late); later late reports cost $125 ($175 if more than 30 days late), up to $600 a year. Late payments accrue interest.
- Missing local tax. Many cities and counties levy an occupational license tax with their own returns.
- Going without workers' comp. Fines run $100 to $1,000 for each employee for every day without coverage.
Related duties
Other Kentucky employer obligations
These run alongside the tax accounts.
- New hire reporting. Report each new hire and returning employee within 20 days to the Kentucky New Hire Reporting Center (ky-newhire.com), the Office of the Attorney General's new hire program.
- Workers' compensation. Required with one or more employees, unless the Commissioner authorizes self-insurance.
- Local occupational license taxes. The Secretary of State posts forms for each taxing district that levies one.
- Posters. Display the required state posters, including Unemployment Insurance and Wage and Hour.
Filing calendar
Kentucky deadlines after registration
Your frequency depends on how much you withhold.
- Annual (under $400 a year): Form K-3 by January 31.
- Quarterly ($400 to $1,999 a year): Form K-1 by April 30, July 31 and October 31; K-3 by January 31.
- Monthly ($2,000 to $49,999 a year): Form K-1 by the 15th of the next month; K-3 for December by January 31.
- Twice monthly ($50,000 or more a year): Form K-1 for the 1st to 15th by the 25th, and for the 16th to month end by the 10th of the next month; Form K-3 for the last period of the year.
- W-2s and other withholding statements: to DOR by January 31.
- UI wage reports and payments: by the last day of the month after each quarter.
Official links
Kentucky agency links
Official forms, rates and guidance.
- Kentucky DOR: Employer Payroll Withholding
- Kentucky DOR: Withholding Tax Instructions for Employers (42A003)
- Kentucky Office of Unemployment Insurance: Employer Guide 2026
- Kentucky Business One Stop: Managing employees
- Kentucky Office of the Attorney General: Child support and new hire reporting
- Kentucky Education and Labor Cabinet: Workers' compensation employer FAQ
- Kentucky Secretary of State: Occupational license tax forms
Kentucky registration questions
How do I register for Kentucky payroll taxes?
Register for a withholding account at MyTaxes.ky.gov (or with Form 10A100), and register as an employer in KUIP for unemployment insurance.
What is the Kentucky new employer unemployment rate?
2.7% for 2026, on the first $12,000 of each employee's wages.
When does a Kentucky employer owe unemployment tax?
A for-profit, non-agricultural business is liable once it pays $1,500 in wages in a quarter or has a worker in any part of 20 weeks in a year.
How fast must I report new hires in Kentucky?
Within 20 days of the hire or return to work, to the Kentucky New Hire Reporting Center (ky-newhire.com), the Office of the Attorney General's new hire program.
Does Kentucky have local payroll taxes?
Many cities and counties levy an occupational license tax. The Kentucky Secretary of State posts forms for each taxing district.
I am the only employee of my S corporation. What do I need in Kentucky?
If you pay yourself wages, you need the DOR withholding account, and you may need a KUIP account once you meet the liability tests. A dedicated tax manager can complete the registration with you as part of our S corp payroll package.
How is registration priced?
Most states issue two IDs, one for withholding and one for unemployment insurance. Pricing depends on the states and accounts involved. We'll quote it on a quick consultation.
Is this tax advice?
No. It summarizes official guidance from Kentucky state agencies. Ask your CPA or tax advisor about your own facts.
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Next step
Let us set up Kentucky with you
A dedicated tax manager files your DOR and KUIP registrations with you, sets up new hire reporting and confirms both accounts before your first payroll. Pricing depends on the states and accounts involved. We'll quote it on a quick consultation.
About this guide
Last verified and sources
Last verified October 29, 2026 against Kentucky state agency pages. This guide is general information, not tax or legal advice.
Related
- State payroll tax registration (all states)
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- Iowa payroll tax registration guide
- Kansas payroll tax registration guide
- Arkansas payroll tax registration guide
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- Payroll setup for new businesses
- Payroll tax filing and compliance
- S corp payroll
- S corp payroll setup checklist
- Payroll processing
- Our services
Sources
- Kentucky DOR, Employer Payroll Withholding
- Kentucky DOR, Withholding Tax Instructions for Employers, 42A003 (March 2026, PDF)
- Kentucky Office of the Attorney General, Child Support
- Kentucky Office of Unemployment Insurance, Employer Guide 2026 (PDF)
- Kentucky Business One Stop, Managing Employees
- Kentucky Revised Statutes 405.435 (Kentucky Legislature)
- Kentucky Education and Labor Cabinet, Workers' Compensation Employer FAQ
- Kentucky Secretary of State, Occupational License Tax forms