103 KAR 18:110. Withholding methods.
RELATES TO: KRS 141.310, 141.370
STATUTORY AUTHORITY: KRS 131.130(1),
NECESSITY, FUNCTION, AND CONFORMITY: KRS
131.130(1) authorizes the department to promulgate administrative regulations
necessary to administer and enforce Kentucky's tax laws. KRS 141.370 requires
the department to establish the individual income tax withholding tables. This
administrative regulation establishes withholding tables and describes the
procedure for supplemental and mechanical withholding.
Section 1. Withholding Tables. An
employer shall withhold Kentucky individual income tax from wages and salaries
in accordance with Kentucky Form 42A003(T), Withholding Kentucky Income Tax, as
incorporated by reference in 103 KAR 3:040. This material may also be obtained
on the Department of Revenue's Web site at http://revenue.ky.gov.
Section 2. Supplemental Withholding. (1)
In addition to tax required to be withheld by the tables in Section 1 of this
administrative regulation, an employee may authorize his employer to withhold
additional Kentucky income tax.
(2) An employee may authorize additional
withholding by filing with the employer an amended Form K-4, Kentucky Department
of Revenue Employee's Withholding Exemption Certificate (Revenue Form 42A804),
incorporated by reference in 103 KAR 3:040.
(3) Withholding Exemption Certificate
(Revenue Form K-4) with his employer. The amended certificate may claim fewer
personal exemptions than are allowed, authorize the employer to withhold a
specific amount of additional tax, or both.
Section 3. Mechanical Withholding. An
employer may use the Computer Formula (Optional Withholding Method) contained
in Kentucky Form 42A003(T), Withholding Kentucky Income Tax, as incorporated by
reference in 103 KAR 3:040 instead of the tables required by Section 1 of this
administrative regulation for the determination of the amount to withhold from
an employee's wage or salary. (IW-11; 1 Ky.R. 331; eff. 2-5-1975; Am. 2 Ky.R.
588; 3 Ky.R. 287; eff. 8-4-1976; 9 Ky.R. 10; eff. 8-11-1982; 16 Ky.R. 2698;
eff. 8-2-1990; 17 Ky.R. 1524; eff. 11-21-1990; 36 Ky.R. 1522; 2046-M; eff.