Kentucky registration and tax info

• 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 within 1–2 days after registering online. If you need help with registration, call the agency directly at (502) 564-3306.

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.
   • 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. Enter your withholding account number—this should be 6 digits, if you have a 9-digit number with 3 leading zeroes, leave the zeroes off. 
   • If you need to update your account number: Contact us from the Help or Priority support section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.

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
• FEIN - Federal Employment Identification Number
• Withholding Tax Account Number

If all information matches, you'll need to work with the agency to determine why Gusto is unable to pay and file successfully. 

Your company usually becomes liable for 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.

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, Gusto allows it—we suggest you add the "New employer SUI tax rate" specific to Kentucky in the meantime.

• You can find the new employer rates for each state in this article, along with instructions on how to update the rate once you become liable and receive your company-specific agency assigned rate.

You'll want to register with the KY Office of Employment and Training as soon as you become liable—eventually, Gusto will need:

• Your unemployment tax account number—required to file and pay taxes on your behalf.
• Your company-specific unemployment tax rate—assigned by the agency.

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

If you need help registering, call the agency directly at (502) 564-2272.

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 (Ex. 12 123456 1), but some accounts include an alpha character or letter between the eighth and the ninth digit (Ex. 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 you'll need to enter in Gusto.
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 agency prompts.
4. Enter the tax account information in Gusto using the instructions below.

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 and 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.
     • Reminder: for 2022, the SCUF is not in effect.
   • If you need to update your rate: Follow these steps. 
   • If you need to update your account number: Contact us from the Help or Priority support section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.

City taxes

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).

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

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. 

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.
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-speciifc 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 from the Department of Revenue

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

It'll be 9 digits (XX-XXXXXX-X), usually with two leading zeros—enter the zeros in your Gusto account. 

Reminder: 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 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.

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 a rate change.

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. Enter the applicable account number(s) and rate(s).
   • Withholding account number: Should be 6 digits—if you have a 9-digit number with 3 leading zeroes, leave the zeroes off. 
   • Unemployment account number: It'll be 9 digits (XX-XXXXXX-X), usually with two leading zeros—enter the zeros in your Gusto account. 
   • Unemployment 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.