Kentucky Compliance and Regulatory Resources

Kentucky business compliance can be difficult. Paychex helps with resources like automated compliance notifications and an enhanced HR library. Learn more about state requirements like minimum wage, workers’ compensation, and more.

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State Tax Rates and Limits

State Supplemental Withholding Rate*
N/A
2026 KY Withholding Tables

State Unemployment Taxable Wage Base Limit
$12,000

State Unemployment Rate Range for Employers
0.3% to 9.0%

State Unemployment New Employer Rate
2.7% New Employer, 9.0% Construction

State Hourly Minimum Wage
$7.25

State Minimum Wage for Tipped Employees
$2.13
KY wage and hour information

Paid Family Leave

Employers can purchase private insurance plans to offer employees a paid family leave benefit.

Coverage can be a separate PFL policy, included in a group disability policy, or added as a PFL rider to a disability insurance policy.

Kentucky Labor Cabinet

State Tax ID Registration

State Withholding and State Unemployment Insurance (SUI) Registration

Kentucky requires Professional Employer Organization (PEO) entities operating under a co-employment agreement to provide separate registration instructions from those required for non-PEO employers.

Please contact your Paychex Service Professional to confirm whether you should follow the PEO or Non-PEO Employer instructions and use the appropriate registration instructions outlined below.

Non-PEO Employers:

Employers are required to have an active withholding and state unemployment insurance (SUI) tax account numbers to file electronically with the Kentucky Department of Revenue (KYDOR) and Kentucky Career Center (KCC).

Register a new business

Note: One registration application will complete your registration requirements for state withholding and SUI.

Visit the Kentucky Online Gateway (KOG) site and log in.
- Refer to the account creation video for assistance.
Complete the registrations; be sure to apply for both withholding and SUI accounts.
Allow up to one (1) week to receive the withholding and SUI tax account IDs.
- Withholding Tax Account Number format: XXXXXXXXX (9 Digits)
- SUI Tax Account Number will be one of the following formats:
  - XX XXXXXX X (9 digits)
  - XX XXXXXXXX (10 digits)
Authorize Paychex as your Third-Party Administrator.
- See Designating Paychex as Your Third-Party Administrator (TPA) for instructions.
Enter your new account numbers in Paychex Flex to ensure your account is updated and email your registration and TPA confirmation documents to your Paychex Service Professional.
- Refer to the Updating Tax Agency IDs in Paychex Flex instructions to update the information in the application.

PEO Employers:

Employers are required to have an active state unemployment insurance (SUI) tax account numbers to file electronically with the Kentucky Career Center (KCC).

Paychex must also be authorized as the Third-Party Administrator (TPA) on the account for making any adjustments to returns and payments on your behalf.

Register a new business

Visit the Kentucky Online Gateway (KOG) site and log in.
- Refer to the account creation video for assistance.
Complete the registration; be sure to apply for a SUI account ONLY.
Allow up to one (1) week to receive the SUI tax account IDs.
- SUI Tax Account Number will be one of the following formats:
  - XX XXXXXX X (9 digits)
  - XX XXXXXXXX (10 digits)
Authorize Paychex as your Third-Party Administrator.
- See Designating Paychex as Your Third-Party Administrator (TPA) for instructions.
Enter your new account numbers in Paychex Flex to ensure your account is updated and email your registration and TPA confirmation documents to your Paychex Service Professional.
- Refer to the Updating Tax Agency IDs in Paychex Flex instructions to update the information in the application.

Designating Paychex as Your Third-Party Administrator (TPA)

KCC requires Professional Employer Organization (PEO) entities operating under a co-employment agreement to provide separate Powers of Attorney (POAs) and Third-Party Administrator (TPA) information from that required for non-PEO employers.

Please contact your Paychex Service Professional to confirm whether you should follow the PEO or Non-PEO Employer instructions and use the appropriate TPA instructions outlined below.

Navigate to Kentucky Unemployment Insurance Portal (KUIP) and click Log In for the Employer Login option.
- You can also refer to the Employer TPA Association video for assistance.
On the Home page, search for TPA Associated? and click on the “No” hyperlink.
- If “Yes” is present and the TPA isn’t Paychex, then the existing TPA will need to be removed.
On the Third Party Administrator (TPA) Authorization screen, select New at the bottom of the screen.
Enter the TPA ID: 8259 and click Next.
Enter the Begin Date.
- Enter the Begin Date for the start of the quarter: Q1 - January 1, Q2 - April 1, Q3 - July 1, Q4 - October 1.
- Leave the End Date blank.
For Unassigned Roles, select the following options:
- For Non-PEO Employers:
  - Select Assign all Edit/Update/Submit roles.
- For PEO Employers:
  - Select Manage Benefits charges and Assign all Edit/Update/Submit roles.
Click Save.
Take a screenshot of the Associate TPA(s) screen and email the confirmation to your Paychex Service Professional.