Kentucky registration and tax info

How it works

Once a work address has been added in a new state and a new employee has been hired and assigned a work address in that state, you can get registration assistance in Gusto.

Pricing varies by state—get started below and during step 4, you'll review the price, process, and estimated timeline to completion.

Here’s a snapshot of the process:

1. We’ll collect some basic business information from you.
2. Gusto and CorpNet will check the information for accuracy.
3. Your registration application(s) are usually submitted within 3-5 business days.
4. Check the mail for registration info—the state will typically send your tax account numbers and rates to you directly.

CorpNet can walk you through entering any info that they themselves do not enter in Gusto on your behalf.

Get started with state tax registration

1. Sign in to Gusto as an admin.
2. Click the Taxes & compliance section and select Tax setup.
3. Under “[State name] Tax Setup”, click Have us register for you.
   • The state you want to register in will only appear in this location once a work address has been added in a new state and an employee has been assigned a work address in that state.
4. Review the price, process, and estimated timeline to completion.
   • We will not charge you the registration service fee until you send us your order.
5. Click Continue.
6. Answer a couple eligibility questions.
   • Note: Gusto can only register for you if you don't yet have a state account already.
7. Click Save & continue.
8. Enter some company information.
   • We’ll pre-populate the information we already have.
9. Click Save & continue.
10. Tell us about your responsible party–this is the person who is to be held accountable for the company’s good standing and a point of contact within the organization for tax purposes.
    • If you're a nonprofit and run into any issues, check out our FAQ section below for more information.
11. Click Save & continue.
12. Enter some state-specific operational information.
13. Click Save and continue.
14. Review all information thoroughly–if any information is incorrect it may delay the process.
    • Heads up: State and local agencies may charge additional fees and increase the estimated turnaround time shown. CorpNet will let you know if that happens.
15. Check the box to acknowledge all info is accurate and you agree to the Terms of Service.
16. Click Send registration order.

After you send your order, we’ll email you with status updates and add your order total to your next monthly invoice.

Check the status of your order

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 completed, you can use the link in the state registration confirmation email from Gusto to check the status of your order. 

You can also check the status in your Gusto account:

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

Cancel your order

If an order is already completed, you'll need to contact CorpNet at [email protected] or 1(888) 449-2638 to cancel. They’re open Monday-Friday from 7am-5pm PT.

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

1. Head to the Taxes & compliance section 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.

FAQs

Q: Can I run payroll for my employees before my registration is complete?

A: Not in most cases—you typically need to have a withholding account number and required tax rate(s) in Gusto before you can run payroll. 

If you’re registering in a state where there is no income tax withheld, you can use the state-specific “new employer rate” in this article until you receive your company-assigned rate from the agency.

Q: Can I use Gusto to register in a new state if I don't have a Federal Employer Identification Number (FEIN) yet?

A: No–you must have a FEIN entered in Gusto to order a state tax registration.

Q: Where can I see all my tax information?

A: You can see all tax details in the following locations: 

• Gusto–head to the Taxes & compliance and select Tax setup, and scroll to the applicable state tax setup.
• CorpNet–create a CorpNet account and login at any time to review information.
• State online account–once you’ve gained access to your agency accounts, your tax details will also be available there.

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: My company is a nonprofit and I'm unable to enter 0% in the responsible party section, what do I do?

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

Registration orders will need to be placed directly through CorpNet, outside of Gusto, or you'll need to register directly with the agency yourself.

Income tax withholding 

1. Register online with the Kentucky Department of Revenue.
2. Select Click here to create a new account.
   • We recommend that you review the One Stop Overview for guidance on the registration process.
   • You should receive your account number and deposit schedule in 1-2 days after registering online.
   • If you're asked if you're using a “common paymaster” or “pay agent,” select No.
3. Once registered, enter your tax account information by clicking the Taxes & compliance section and selecting Tax setup. 

Call the agency at (502) 564-3306 if you need help with registration.

Troubleshoot Department of Revenue authorization issues

Some agencies require special authorization for Gusto to pay or file your taxes—verify that the following information you entered in by clicking the Taxes & compliance section and selecting Tax setup to ensure Gusto matches what's on file with the Department of Revenue:

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

If Gusto is having trouble gaining access to your account, call the agency at (502) 564-7287 and verify that the above information matches exactly what the agency has on file.

Unemployment tax

Most companies are liable for state unemployment if they have paid $1500 in wages in a calendar quarter or had one employee in any part of 20 different weeks in a calendar year. If you're not yet liable, you can enter the state-specific “new employer rate" in Gusto for the meantime, and update it once you've obtained your company-assigned rate.

1. Register online with the Kentucky Office of Employment and Training to get your KEIN account number. 
   • The Kentucky account number ("KEIN") should include nine digits (Example: 12 123456 1), but some accounts include an alpha character or letter between the eighth and the ninth digit (Example: 12 123456A 1).
     • If the letter you received from the agency only has eight digits: call the agency at (502) 564-2272 to obtain the ninth digit in order to enter the information correctly by clicking the Taxes & compliance section and selecting Tax setup.
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. Once registered, enter your unemployment rate by clicking the Taxes & compliance section and selecting Tax setup.
   • 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.
     • Reminder: for 2022, the SCUF is not in effect.
   • If you don't yet have your rate, you can enter the state-specific “new employer rate" in the meantime, and update it once you've obtained your company-assigned rate.

Visit the agency website or give the agency a call at (502) 564-2272 if you need help.

Other Kentucky taxes

Employers are required to withhold the taxes for the city in which the employees are working in Kentucky. The occupational fee 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. The rate varies depending on where the business activity occurs.

For more information, head to the Kentucky OneStop website, and 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 to be granted access to your account so that we can file and pay the tax on your behalf. To grant 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.
   • This allows Gusto to link our online eMINTS to your account.  

County taxes

There are several Kentucky 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 employer 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 pay the county taxes and would need to register with the county. When in doubt, double-check with the county agency.

Click here for a list of all Kentucky districts and localities.

School district taxes
Some counties impose a school tax for work performed in the county by residents (examples: Boone, Cumberland, Fayette, Marshall, Scott, and Warren counties). Reference the Kentucky localities list on the Kentucky Department of Education for more information.

Income tax withholding

Your Department of Revenue account number will be 6 digits and can be found on any return (K-1, K-1E, K-3 and K-3E) sent from the Kentucky Department of Revenue.

• If you have a 9-digit number with 3 leading zeroes, leave the zeroes off. 

The agency will assign you one of the below tax deposit schedules:

• Twice monthly
• Monthly
• Quarterly
• Annually

Unemployment tax account number

Your KEIN account number will be on your Quarterly Unemployment Report (Form UI-3) and will be 9 digits (XX-XXXXXX-X), usually with two leading zeros—enter the zeros into your Gusto account. 

• Most companies are liable for state unemployment if they have paid $1500 in wages in a calendar quarter or had one employee in any part of 20 different weeks in a calendar year. 

Unemployment tax rate

Your UI 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.
  • Reminder: for 2022, the SCUF is not in effect.

Your rate may change from time to time, typically annually. Make sure to update your rate in your Gusto account if the agency sends you a notice of rate change.

If you don't yet have your rate, you can enter the state-specific “new employer rate" in the meantime, and update it once you've obtained your company-assigned rate.

• Occupational License Fee (Mercer County) (KY0033-138)*
• Employer's Return of Income Tax Withheld (K-1) for one day, twice monthly, monthly, or quarterly filers
• Employer's Return of Income Tax Withheld (K-3) for annual filers
• Transmitter Report for Filing Kentucky Wage Statements (42A806)*
• Wage and Tax Statement (State W2)
• Employer's Quarterly Unemployment Wage and Tax Report (UI-3)
• KY New Hire Report
• Various local returns

• Kentucky Department of Revenue (502) 564-7287
• Kentucky Division of Unemployment Insurance (502) 564-2168

• Agent name: Tomer London

• Firm Name: ZenPayroll Inc (dba: Gusto)

• FEIN: 453942850

• Email: [email protected]

• Address: 525 20th Street San Francisco, CA 94107 

• Phone: (415) 935-0230

Reminder: If state-specific codes/IDs are requested and you cannot match them to the information above, check the Register a company with the state on your own dropdown of the article.