103 KAR 18:010.

Employers required to withhold.

 

      RELATES TO: KRS

141.070, 141.310, 141.320

      STATUTORY

AUTHORITY: KRS Chapter 13A

      NECESSITY,

FUNCTION, AND CONFORMITY: This administrative regulation defines the terms

"employer" and "wages" from the standpoint of Kentucky

income tax withholding requirements.

 

      Section 1.

Employers. Every employer incorporated in Kentucky, qualified to do business in

Kentucky, doing business in Kentucky, or subject to the jurisdiction of

Kentucky in any manner, and making payment of wages subject to withholding

shall deduct, withhold, and pay to the cabinet the tax required to be withheld.

 

      Section 2.

Wages. All wages paid to a Kentucky resident whether working in or out of

Kentucky, as a regular employee in the conduct of business of an employer

required to withhold taxes, are subject to withholding. The wages paid to

nonresidents of Kentucky are subject to withholding to the extent that they are

wages for personal services rendered in Kentucky as a regular employee in the conduct

of the business of an employer in Kentucky. However, the nonresident is not

subject to withholding where a reciprocal exemption agreement is in effect

between Kentucky and the state of residence of the nonresident employee. (IW-1;

1 Ky.R. 329; eff. 2-5-75.)