Kentucky · Payroll registration
Kentucky payroll tax registration, done for you.
Kentucky Revised Statute Chapter 141 requires employers to withhold income tax for both resident and nonresident employees, unless exempted by law. From 2026 there is no paper option left: all employer filing frequencies are required to file and pay electronically.
Last updated:
Who you are dealing with
Kentucky Department of Revenue
- Handles:
- Employer payroll withholding account
- System:
- MyTaxes at MyTaxes.ky.gov
- Form:
- Register, file, and pay through the MyTaxes portal. Withholding statement information is reported on Form K-5, unless you submit in EFW2 or Publication 1220 format, in which case K-5 is not filed
Kentucky Office of Unemployment Insurance
- Handles:
- Unemployment insurance employer account
- System:
- Kentucky Employer Self Service
- Form:
- Registered separately from the Department of Revenue withholding account
Kentucky Office of Unemployment Insurance, payroll registration
State fee. $0 to register. Our flat fee covers preparing and filing the registration.
Our fee. $180 per state, flat. State fees are passed through at cost.
When you have to register
Withholding is required for employees receiving wages as defined in section 3401(a) of the Internal Revenue Code, and it applies to nonresident employees as well as residents unless an exemption applies. Working in Kentucky is what matters, not living there.
What comes next
Withholding statements, meaning W-2, W-2G and 1099 forms, are due by 31 January, so the account and its electronic access need to be working well before the first year end.
How long it takes
Kentucky does not publish a registration turnaround we could confirm. What it does publish is the electronic mandate, which shapes how the account has to be set up from day one.
What we do
We work out which accounts you need, submit each registration, and hand you the account numbers, rates, and deposit schedules your payroll system asks for. One remote hire. $180 per state, plus state fees at cost. We submit within 2 business days. You keep the client. We never email them.
Hiring in more than one state? State payroll tax registration covers the withholding and unemployment accounts payroll software will not open.
What makes Kentucky harder than average
- Electronic filing is mandatory for every frequency from 2026. Under 103 KAR 18:150 all employer filing frequencies must file and pay the income tax withheld electronically. A paper habit carried in from another state simply will not work here.
- Nonresidents are in scope. Kentucky requires withholding for both residents and nonresidents unless exempted by law, so an employee who commutes in from Ohio, Indiana, Tennessee, or West Virginia is still a Kentucky withholding question.
- Form K-5 is conditional, which confuses people. K-5 reports withholding statement information, but accounts submitting in EFW2 or Publication 1220 format do not file it. Whether you owe a K-5 depends on how you file everything else.
- The portal account is a prerequisite, not an afterthought. A MyTaxes account is required to file Form K-5 electronically, so getting portal access sorted is part of the registration rather than something to do later.
How Kentucky compares
What triggers registration in Kentucky is not what triggers it next door. The table sets the thresholds side by side.
Questions and answers
Do I withhold Kentucky tax for an employee who lives in another state?
Generally yes. Kentucky Revised Statute Chapter 141 requires withholding for both resident and nonresident employees unless exempted by law. Whether a specific exemption or reciprocity applies is a question for your CPA.
Can I file on paper?
No. From 2026 all employer filing frequencies are required to electronically file and pay the income tax withheld, under 103 KAR 18:150.
Do I have to file Form K-5?
Only if you are not already submitting withholding statement information in EFW2 or Publication 1220 format. Accounts filing in those formats do not file K-5.
When are W-2s due?
Withholding statements, including W-2, W-2G and 1099 forms, are due by 31 January.
What do you need from me to start?
The legal name and FEIN, entity type, Kentucky work locations, your first payroll date, whether any employees are nonresidents commuting in, and who will hold the MyTaxes portal access.
The forms behind this filing
Also in Kentucky
Agency details verified 2026-08-03
About the provider
Regcrest LLC is a document preparation and filing service based in Allentown, Pennsylvania, founded in 2026. It prepares and files state payroll and sales tax registrations, account closures, and resale certificates on behalf of the businesses that instruct it, and works behind accounting firms, bookkeepers, and payroll providers as well as directly with businesses.
Regcrest LLC is not a CPA firm and not a law firm. It gives no tax or legal advice. It files in all 50 states, and publishes a full page for the 29states it has verified against the agency's own material so far, each one showing the date it was checked. For anything that turns on your specific situation, ask a licensed accountant or attorney.