Kentucky issues new withholding tables

In response to recent legislation (see Payroll Management Guide Report Letter 1517/2553, dated April 24, 2018), Kentucky has issued new wage-bracket and formula withholding tables. Kentucky enacted a new 5% flat tax rate. Due to the change, a flat rate withholding formula has been developed. In the new formula, exemptions are not taken into account, only the standard deduction, which is $2,530. The withholding formula is reproduced in this Report Letter on page 9. All of the tables will be reproduced in the Payroll Management Guide at ¶6308 and ¶6309 in a future release. (Kentucky Department of Revenue, 42A003(T), Withholding Kentucky Income Tax: 2018 Withholding Tax Table and Formula Released May 2018, Effective for Tax Year Beginning January 1, 2018; Kentucky Department of Revenue, 42A003 (TCF)(05-2018), 2018 Withholding Tax Formula.)

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