Kentucky Compliance and Regulatory Resources

Kentucky business compliance is difficult to keep up with. Paychex helps with state compliance updates and other business resources. Learn more about the requirements your business may need to comply with such as minimum wage, workers’ compensation, and more.

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State Tax Rates and Limits

State Supplemental Withholding Rate*
N/A
2025 KY Withholding Tables

State Unemployment Taxable Wage Base Limit
$11,700

State Unemployment Rate Range for Employers
0.3% to 9.0%

State Unemployment New Employer Rate
2.7% New Employer, 9.0% Construction (both include 0.075% SCUF surcharge)

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

Registration instructions for state withholding and state unemployment insurance.

You will need to create a relationship between Sales, Use, and Withholding and your business.
Allow up to one (1) week to receive the withholding and UI tax account IDs.
- Withholding tax Account Number format: XXXXXX (6 digits)
- UI Tax Account Number will be one of the following formats:
  - XX XXXXXX X (9 digits)
  - XX XXXXXXXX (10 digits)

Entering your account numbers in Paychex Flex: Enter your new account numbers in Paychex Flex^® and email your registration confirmation documents to your Paychex Service Professional.