Kentucky registration and tax info

What you need to do

• Add a new work address in Gusto for a different state, and;
• Hire an employee and assign them to that address.

Cost and timeline

Prices vary by state. You can see the cost, process, and how long it takes in step four below.

What the process looks like

1. You give us some basic business information.
2. Gusto and CorpNet will check your info.
3. Your registration is usually submitted within 3–5 business days.
4. Watch for mail with your tax account numbers and rates from the state. The state usually sends your tax account numbers and rates directly to you.
   
   • Heads up: If CorpNet doesn’t enter some information into Gusto, they can show you how to do it yourself.

Third-Party Agent (TPA) authorization reminder

Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, CorpNet doesn’t set this up, so you’ll have to do it yourself after registration.

Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA isn't needed right now.

Prices vary by state. You can see the cost, process, and how long it takes in step four below.

1. Sign in to Gusto as an admin.
2. Go to Taxes & compliance and click Tax setup.
3. Under “[State name] Tax Setup”, click Have us register for you.
   • The state will only show up if you’ve added a company work address there and assigned an employee to it.
4. Look at the price, process, and how long it will take.
   
   • We will not charge you until you send in your order.
5. Click Continue.
6. Answer a few questions to see if you're eligible.
   • We can only register for you if you do not already have a state account.
7. Click Save & continue.
8. Enter some company information (we'll fill in what we already know).
9. Click Save & continue.
10. Tell us who the responsible party is. This is the person in charge of the company’s tax matters and good standing. 
    • If you're a nonprofit and need help, check our FAQs below.
11. Click Save & continue.
12. Enter some state-specific operational information.
13. Click Save and continue.
14. Review all info carefully. Mistakes can delay things. 
    • Heads up: State and local agencies might add fees or take longer than expected. CorpNet will notify you if that happens.
15. Check the box to confirm all your info is correct and agree to the Terms of Service.
16. Click Send registration order.
    • We’ll email you with order updates and add the cost to your next monthly bill.

Some reminders

• You need to give Gusto third-party access (TPA) to your tax accounts. CorpNet doesn’t do this for you.
  • Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA isn't needed right now.
• Watch your mail for registration info. The state will send you your tax account numbers and rates.
  • CorpNet can help you enter tax info into Gusto, but they won’t do it for you.

When your order is complete, you’ll receive emails from both Gusto and CorpNet. They’ll detail the next steps, which include:

• Reviewing registration details
• Any other state-specific instructions

Before your order is done, use the link in the state registration email from Gusto to check your order's status.

You can also check the status in your Gusto account:

1. Click Taxes & compliance and select Tax setup.
2. Scroll to the state's headline.
3. Click Check the status of your registration.

If your order is still in progress, you can cancel from your Gusto account:

1. Click Taxes & compliance and select Tax setup.
2. Scroll to the state's headline.
3. Click Check the status of your registration.
4. On the right-side of the page, under “Changed your mind?”, click Cancel your order.
5. Let us know why you're canceling.
6. Click Cancel your order.

If you were already charged, you'll get a refund in a few business days.

If you canceled your order but would like to re-open it, contact CorpNet directly at (888) 449-2638. Or email them at [email protected].

Q: Can I run payroll before my registration is done?

A: Yes, you can usually run payroll before all state tax info is added in Gusto. You may be asked to enter tax rates and tax deposit frequencies, but can use temporary info.

Important reminders

• We cannot submit tax payments or filings until all tax account numbers are added.
• If you run payroll before finishing registration, you might get notices about late tax payments or filings. Any penalties are your responsibility.
• If you’re only registering for unemployment tax and don’t have your rate yet, use the new employer rate for your state in Gusto until you get the correct one. Update the rate once you get it.

Q: Can I use Gusto to register in a new state without a Federal Employer Identification Number (FEIN)? What if my business is merging or being acquired?

A: No, you need a FEIN in Gusto to get registration help for state taxes.

If your business is merging or being acquired, CorpNet cannot help with registration. You'll need to work with a tax advisor and state agencies directly.

Q: Where can I find my tax information?

A: You can find your tax info in several places: 

• In Gusto: Go to Taxes & compliance and click Tax setup, then scroll to state tax setup.
• In CorpNet: Create an account and sign in to see your info.
• In your state’s online portal: Find your account details there.
• By mail: Some agencies send tax info by mail. If that happens, CorpNet will let you know, and you'll need to enter this info in Gusto.

Gusto’s state tax registration service does not contain tax, legal, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer, HR expert, or accountant for specific guidance.

Q: What if I'm not liable for unemployment tax yet?

A: If you want CorpNet to start setting up an unemployment account number before you're liable, you can:

• Use today’s date as the first date the employee(s) in the new state will be paid. 
• Enter the start date of the quarter you expect to meet the liability threshold.
  • Check the state’s liability info in the Register on your own section (go to the SUI dropdown). If there’s no info, contact the state agency directly.

Q: Can CorpNet help if the responsible party is international without an ITIN or SSN?

A: CorpNet might be able to help. Contact them at [email protected] or call 1(888) 449-2638.

Q: Why can’t I enter 0% ownership for the responsible party or add a commercial owner?

A: Some states have a 1% minimum for the responsible party ownership percentage. These states include: ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI.

You’ll need to place registration orders directly with CorpNet outside of Gusto or register directly with the agency.

Some states require an individual owner to be listed. If you’re a non-profit or unsure, contact CorpNet for help at [email protected] or call 1(888) 449-2638.

Q: Does CorpNet help with giving Gusto third-party access (TPA) for tax payments?

A: Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, CorpNet doesn’t set this up, so you’ll have to do it yourself after registration.

Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA isn't needed right now.

Q: Does CorpNet help close state tax accounts?

A: No, you'll need to close the tax account yourself.

• Kentucky Department of Revenue (DOR) – income tax withholding
• Kentucky Office of Employment and Training – unemployment tax
• Local Kentucky tax agencies – various

Register for income tax with the KY Department of Revenue (DOR)

You should receive your account number and tax deposit schedule 1–2 days after registering online. If you need help with registration, call the agency directly at (502) 564-3306.

1. Learn what you'll need to register on the Kentucky Department of Revenue website. 
2. Complete your online registration via the Kentucky Business OneStop portal—click Create new Account to get started. 
   
   • We recommend that you review the One Stop Overview for guidance on the registration process (requires sign-in).
   • If you're asked if you're using a “common paymaster” or “pay agent,” select No.
3. Once registered, enter your tax account information in Gusto.

Enter the tax account information in Gusto

Once a valid Kentucky work address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Go to the Taxes & compliance section and select Tax setup.
2. Scroll to the “Kentucky Tax Setup” headline and select Manage taxes.
3. Click Edit to enter your withholding account number. This should be six digits. If you have a nine-digit number with three leading zeroes, leave the zeroes off. 
   • If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.
4. Click Edit next to “Filing Frequency” to let us know your agency-assigned tax filing frequency.
   • If you do not know your filing frequency, select the most frequent schedule for now (to prevent late payments or penalties). Then reach out to the agency to confirm what it should be. You can always update the filing frequency at a later time.

Troubleshoot Department of Revenue (DOR) authorization issues

Some agencies require special authorization for Gusto to pay or file your taxes. If we're having trouble gaining access to your account, call the agency at (502) 564-7287 and verify that the below information entered in Gusto matches exactly what the DOR has on file:

• Official company name/address
• Federal Employment Identification Number (FEIN)
• Withholding Tax Account Number

If all information matches, work with the agency directly to figure out why Gusto cannot successfully pay and file tax returns for you.

Most companies become liable for Kentucky unemployment insurance tax once the company has:

• Paid $1500 in wages during a calendar quarter or;
• Had at least one Kentucky-employee working for any part of the week, for 20 or more different weeks during a calendar year.

Liability thresholds can vary by business type (general, non-profit, etc), so we recommend contacting the agency directly to confirm when your specific business will be liable. 

Running payroll in Gusto before you're liable for state unemployment insurance (SUI)

If you need to run payroll and do not yet meet the above requirements, add the “New employer SUI tax rate” for Kentucky in Gusto in the meantime. Once you get your agency-assigned rate, update it.

Register for unemployment tax with the KY Office of Employment and Training

If you get stuck registering or have questions, call the agency directly at (502) 564-2272.

1. Register online with the Kentucky Office of Employment and Training to get your:
   • Kentucky Employer Identification Number (KEIN). 
     • The KEIN should have nine digits (e.g., "12 123456 1"), but some accounts include an alpha character or letter between the eighth and the ninth digit (e.g., "12 123456A 1").
       • If for any reason your letter from the agency only has eight digits, call them at (502) 564-2272 to get the ninth digit.
   • Adjusted UI tax rate (unemployment tax rate).
2. When asked if you'll be filing electronically or using a Third-Party Administrator, answer "Yes," but enter your own company's mailing address so you stay informed of changes to your account.
3. Complete all remaining prompts.
4. Once registered, enter the tax account information in Gusto.

Enter the tax account information in Gusto

Once a valid Kentucky work address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Go to the Taxes & compliance section and select Tax setup.
2. Scroll to the "Kentucky Tax Setup" headline and select Manage taxes.
3. Enter your unemployment account number (KEIN) and adjusted UI tax rate.
   
   • Do not include the surcharge rate for Service Capacity Upgrade Fund (SCUF)—this is automatically added to your rate by Gusto in the years that it's in effect.
   • If you need to update your rate, learn how here.
   • If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.

City taxes—occupational license fees

Employers are required to withhold local city (or county) taxes in cities that their employees work in—this is often called an Occupational License Fee (OLP).

The OLP is imposed for the privilege of engaging in any business, professional occupation, or trade within city limits, regardless of the legal residence of the employee. Tax rates vary based on where the business activity occurs. For city-specific requirements, contact the applicable local agency directly. 

Head to the Kentucky OneStop website to learn more about Occupational Licenses.

Louisville Metro Revenue Commission

The Louisville Metro Revenue Commission requires employers to create an 'eMINTS logon' on the city's website—Gusto needs access to your account so we can file and pay the tax on your behalf. To give Gusto access:

1. Create a master username on the main eMINTS page.
2. Sign in to your account.
3. Click the Give Access to a Third Party link. 
4. When prompted, enter 95896 as Gusto's Access Code and [email protected] as Gusto's email.
5. This allows Gusto to link our online eMINTS to your account.  

School district taxes

Some counties (e.g., Boone, Cumberland, Fayette, Marshall, Scott, and Warren) impose a school tax for work performed in the county by residents.

Check out the most current localities list on the KY Department of Education website.

County taxes

There are several KY counties that impose a tax for all work performed in any city within their county, regardless of the legal residence of the employee.

• If the business is inside the city limits of a city that imposes a tax, the employer may only owe license fees to the city, and may not owe the county license fees.
• If the business is located outside the city limits, then they would need to register for, and pay the county taxes. 

Click here for a list of all Kentucky districts and localities. If you have questions about your company-specific requirements, contact the applicable agency directly.

Corbin city taxes may differ by county

Corbin city is in three counties (Knox, Whitley, and Laurel), but only Knox county imposes both a city and a county tax, while the other two counties only assess the county tax: 

• For Corbin, Knox County: 1% Corbin city tax, and 1% Knox county tax, for a total of 2% per employee (paid to Corbin city). 
• For Corbin, Whitley County: 1% Whitley county tax, only.
• For Corbin, Laurel County: 1% Whitley county tax, only.

If an employee lives in Whitley, or Laurel, and you see both city and country taxes being withheld, you can set up an employee exemption for the Corbin city tax (as only the county tax applies).

Withholding (income) tax account number

Your KY Department of Revenue (DOR) account number will be six digits and can be found on any return (K-1, K-1E, K-3 and K-3E) sent from the agency.

If you have a nine-digit number with three leading zeroes, leave the zeroes off. 

Tax filing frequency

The agency will assign you one of the below tax deposit schedules (filing frequencies):

• Twice monthly
• Monthly
• Quarterly
• Annually

If you do not know your filing frequency, select the most frequent schedule for now (to prevent late payments or penalties). Then reach out to the agency to confirm what it should be. You can always update the filing frequency at a later time.

To confirm any of your tax details, call the agency at (502) 564-3306.

Unemployment tax account number—Kentucky Employer Identification Number (KEIN)

Your unemployment account number (KEIN) will be on your Quarterly Unemployment Report (Form UI-3).

It'll be nine digits (XX-XXXXXX-X), usually with two leading zeros—enter the zeros in your Gusto account. 

Unemployment tax rate

Your adjusted UI tax rate appears next to the “UI Rate” section of the Notice of Contribution Rate that you receive from the KY Division of Unemployment Insurance. 

• Do not include the surcharge rate for Service Capacity Upgrade Fund (SCUF)—this is automatically added to your rate by Gusto in the years that it is in effect.

Your rate may change from time to time, typically annually—if this happens, update your rate in your Gusto.

If you do not have your assigned rate yet, enter the new employer rate for your state in Gusto in the meantime—update the rate once you receive it.

Once a valid Kentucky address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the “Kentucky Tax Setup” headline and select Manage taxes.
3. Click Edit to enter the applicable account numbers and rates.
   • Withholding account number: Should be six digits—if you have a nine-digit number with three leading zeroes, leave the zeroes off. 
   • Tax filing frequency: If you do not know it, select the most frequent schedule for now (to prevent late payments or penalties). Then reach out to the agency to confirm what it should be.
     • You can always update the filing frequency at a later time.
   • Unemployment account number (KEIN): It'll be nine digits (XX-XXXXXX-X), usually with two leading zeros—enter the zeros in your Gusto account. 
   • Unemployment tax rate (adjusted UI tax rate): Do not include the surcharge rate for Service Capacity Upgrade Fund (SCUF)—this is automatically added to your rate by Gusto in the years that it is in effect.