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For proper Kentucky tax withholding, the Annual Standard Deduction and Annual Tax Credit amounts must be entered in each employee's record in TKT Payroll.
The 2012 Annual Standard Deduction amount of $2290 must be entered in the next to last field in the employee's record.
The 2012 Annual Tax Credit amount of $20 must be entered in the last field in the employee's record.
The Kentucky annual standard deduction, tax credit amounts, and the state tax withholding tables can be found on the website shown on the TKT Payroll Kentucky tax table.
Access the TKT Payroll Kentucky Tax Table by clicking "Utilities" on the TKT Payroll Main Menu bar, then highlighting "Withholding Rates" and clicking "State Annual Rates". Next, click the down arrow to select the state and click the “Go” button.
If applicable for your payroll, the following steps will ensure proper deduction of City or County Taxes for employees:
1. Click "Utilities" on the main menu bar, then highlight "Withholding Rates" and click "Local Tax Settings"
2. Type the City or County name in the box under "Type Name of Tax Locality"
3. Click the down arrow for "Select Locality Tax Base" and select the appropriate base.
4. Then click the "Save" button.
The appropriate percent should be entered as a decimal number in each employee's record in the box to right of the description "Local Tax Rate as a Decimal Number ->" .
The Local tax percentage can be found for your state on the website http://www.kyola.org/images/pdfs/2011kentuckycommunitiesimposinganoccupationaltax.pdf
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