TAXES 18-54, Kentucky State Income Tax Withholding

TAXES 18-54, Kentucky State Income Tax Withholding

Published: June 12, 2018
Effective: Pay Period 12, 2018

Summary

The income tax withholding formula for the State of Kentucky will change as follows:

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

Tax Formula

State Abbreviation:

KY

State Tax Withholding State Code:

21

Acceptable Exemption Form:

K-4

Basis for Withholding:

N/A / Flat Rate

Acceptable Exemption Data:

None

TSP Deferred:

Yes

Special Coding:

None

Additional Information:

None

Withholding Formula (Effective Pay Period 12, 2018)

  1. Subtract the nontaxable biweekly Thrift Savings Plan (TSP) contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
  5. Subtract the standard deduction of $2,530 from the result of step 4 to compute the taxable income.
  6. Apply the flat tax rate of 5 percent to the annual taxable wages in step 5 to determine the annual tax amount.
  7. Divide the annual Kentucky tax withholding calculated in step 6 by the number of pay dates in the tax year to obtain the biweekly Kentucky 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 and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Bulletin

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 customer service portal.