Kentucky payroll, fully managed at $25-$45 PEPM. Your team does nothing.

Kentucky levies a flat state income tax of 4.5%. Employers must withhold Kentucky income tax from wages and remit to the Kentucky Department of Revenue on the required schedule, typically monthly or quarterly based on withholding liability. Kentucky SUI is administered by the Kentucky Office of Unemployment Insurance. Kentucky also has significant local income tax obligations: over 260 Kentucky cities, counties, and school districts levy local occupational taxes that employers must withhold and remit separately.

Kentucky's local tax landscape is one of the most complex in the country for local jurisdictions. Employees working in Louisville, Lexington, and many other Kentucky cities and counties are subject to local occupational taxes in addition to the state flat rate. Rates, filing deadlines, and remittance procedures vary by jurisdiction. Employers with employees in multiple Kentucky localities must manage each separately.

BEG manages both the state and local layers of Kentucky payroll compliance. We withhold the flat 4.5% state tax, identify and apply the correct local occupational tax rate for each employee's work location, manage quarterly remittances to all applicable local jurisdictions, file SUI returns, process new hire reports, handle garnishments, and produce year-end W-2s. Kentucky's local tax complexity is a real operational burden. BEG absorbs it entirely.