Knowledge Base

How Do I Update My Kentucky Tax Tables?


Where do I find the tax tables?

For KY tax tables, you will need the current form 42A003 "Withholding Tax Instructions for Employers" found on the KY Department of Revenue website.

Which tables do I use?

In May 2018, Kentucky enacted a 5% flat tax rate. In this formula, exemptions are not taken into account, only the standard deduction.

Note that the figures shown in this document are for demonstration purposes only, and may not be current. Please consult the current publication for the most up-to-date information. Though the figures change periodically, the method of calculation should remain the same. If the calculation method has changed for this state please notify the webmaster.


Figure 1 - 2018 KY Tax Rate

 

Figure 2 - 2018 KY Tax Formula

How to setup/update the tables in PowerChurch Plus

To setup/update PowerChurch Plus with the state tax table shown in Figure 1 above, select the Accounting menu, Payroll, Setup, then Maintain Tax Tables.

Click Add to enter a new table, or use the Find/Locate buttons to select an existing KY tax table to update. When adding a new table, you will be prompted for the type of tax table you're adding. Select State: Kentucky (Post 5/2018). For each table, enter the following information:

  • Description: Enter a unique name to identify the tax table (for example, "KY State Tax").
  • Tax type: The type of tax in which this table applies. In this instance, select State Tax.
  • Standard deduction: Enter the amount for the standard deduction.The KY Department of Revenue annually adjusts the standard deduction.
  • Percentage: Enter the flat percentage for the current year.
  • Round tax to nearest whole dollar: If required, check this box to round the calculated tax amount to the nearest whole dollar.

When you are done, the screen should look like this:


Figure 3 - KY 2018 State Tax Table

This article applies to the following PowerChurch versions:
PCPlus V 11/11.1, PCPlus V 11.5/11.55, PowerChurch Online

Keywords:
state tax table, tax table, taxes

Created: 12/03/2009
Last updated: 01/02/2019