103 KAR 18:010.
Employers required to withhold.
RELATES TO: KRS
141.070, 141.310, 141.320
AUTHORITY: KRS Chapter 13A
FUNCTION, AND CONFORMITY: This administrative regulation defines the terms
"employer" and "wages" from the standpoint of Kentucky
income tax withholding requirements.
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.
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.)