25 July 2018 Kentucky releases revised employee withholding certificate; threshold for electronic Forms W-2 filing requirement reduced The Kentucky Department of Revenue has released a revised Form K-4, Employee's Withholding Certificate, to its website. The revised Form K-4 also replaces Form K-4E, Special Withholding Exemption Certificate, by including the option to claim exemption from withholding under the remaining four types of exemptions. The updated form was released in response to recent legislation that, effective January 1, 2018, replaces the graduated personal income tax tables with a flat income tax rate of 5% and removes any withholding tax exemptions from the law. (HB 366, HB 487.)? As we reported previously, all Kentucky wage earners are now taxed at a flat 5% rate with a standard deduction allowance of $2,530. The Department also released an updated Publication 42A-003(T), 2018 Withholding Tax Table and Formula, dated July 17, 2018. Employers using the wage-bracket method of withholding should verify that they are properly withholding on the new tables. A supplemental withholding rate is not available; however, the new flat 5% withholding rate now applies. (103 KAR 18:070) The Department reports that, effective January 1, 2018, the Form W-2 electronic filing threshold is reduced from 100 forms to 25 forms. As a result, employers filing 25 or more Forms W-2 for calendar year 2018 with the Department will be required to submit these forms in an electronic format (currently by CD-ROM or via the Department's website) by January 31, 2019. See the 2017 Forms W-2 specifications for more information on requirements for filing electronically. The 2018 specifications have not yet been released. The Department has released a website dedicated to educating Kentucky businesses and individuals about the tax law changes made during the 2018 Kentucky legislative session. See also the Department's withholding tax website.
Document ID: 2018-1487 | ||||||||||||||
