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.
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
State fee. $0 to register. Our flat fee covers preparing and filing the registration.
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
Not applicable to a registration. 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 exactly which accounts you need, prepare and submit each registration, and hand you the account numbers, rates, and deposit schedules your payroll system asks for. One flat price per account, and any state fee passed through at cost.
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.
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.
Agency details verified 2026-08-03