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Kentucky Income Tax Withholding and AdministrationGeneral Withholding Requirement: Kentucky income tax must be withheld from wages paid to resident employees for services performed either within or without the state and from wages paid to nonresident employees for services performed in the state. Employee Withholding Exemption Forms: Kentucky Form K-4 must be completed by each employee, to determine the appropriate level of state income tax to withhold from earnings. Of course, Federal Form W-4 also must be completed by each employee, to determine the appropriate level of federal income tax to withhold from earnings. Reciprocal Agreements: Kentucky has reciprocal agreements in effect with Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, and Wisconsin. Administration: Kentucky Revenue Cabinet Local Tax Jurisdictions: Numerous cities and counties impose an occupational license fee that must be withheld from employees' wages. |