TAXES 16-32, Kentucky County (Local) Income Tax Withholding | National Finance Center

TAXES 16-32, Kentucky County (Local) Income Tax Withholding

Published: December 28, 2016
Effective: Pay Period 25, 2016

Summary

The occupational tax formula for Boone and Kenton County, Kentucky, will include the following changes:

No action on the part of the employee or the personnel office is necessary.

Tax Formula

County Name

State/County Codes

County Tax Status

Boone

21/015

Duty Station/mandatory

Clay

21/051

Duty Station/voluntary

Jefferson

21/111

Duty Station/mandatory

Kenton

21/117

Duty Station/mandatory

Madison

21/151

Duty Station/mandatory

McCracken

21/145

Duty Station/mandatory

Withholding Formula (Effective Pay Period 25, 2016)

  1. Multiply the gross biweekly wages by 26 to obtain the annual wages.
  2. To determine the annual Kentucky County income tax withholding, multiply the gross annual wages by the appropriate County income tax percentage in the table below.

     

    County Name

    State/County Codes

    Resident Percentage

    Nonresident Percentage

    County Tax Status (Duty Station = DS Residence = R)

    Boone

    21/015

    0.8%1

    0.8%1

    DS

    Clay (voluntary)

    21/051

    1.00%

    1.00%

    DS

    Jefferson

    21/111

    2.20%

    1.45%

    DS

    Kenton

    21/117

    0.7097%2

    0.7097%2

    DS

    Madison

    21/151

    1.00%

    1.00%

    DS

    McCracken

    21/145

    1.00%

    1.00%

    DS

    1 Maximum taxable wage base of $59,217 (maximum annual tax of $473.74) applies to the 0.8 percent occupational tax. Maximum taxable wage base of $16,666 (maximum annual tax of $25) applies to the 0.15 percent Senior Citizen and Mental Health Tax.

    2 Maximum taxable wage base of $127,200 (maximum annual tax of $289.54) applies to the 0.7097 percent occupational tax. The lower taxable wage base limit remains $25,000. The payroll tax rates remain 0.7097 percent on wages up to $25,000 and 0.1097 percent on wages greater than $25,000 and up to the OASDI wage maximum of $127,200.

  3. Divide the annual Kentucky County income tax withholding by 26 to obtain the biweekly Kentucky County income tax withholding.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Select the desired State from the map provided for the formula.

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.