Payroll Compliance Guide

Kentucky Payroll Compliance Guide

Complete Reference for Multi-State Employers

Last updated: January 2025 • 60+ requirements covered

Key Facts at a Glance

RequirementKentucky Rule
Minimum Wage$7.25 (federal)
Tipped Minimum$2.13 + tips
Overtime Threshold40 hours/week + 7th consecutive day
Final Pay (Termination)Next regular payday or within 14 days
Final Pay (Resignation)Next regular payday or within 14 days
PTO Payout Required?No (unless policy requires)
Pay Frequency MandateSemi-monthly (at minimum)
State Income TaxYes (4% flat rate)
Unemployment InsuranceYes
State Disability InsuranceNo
Paid Family LeaveNo
Paid Sick LeaveNo
Workers' Comp RequiredYes (all employers)

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Local Jurisdiction Rules

Louisville, Lexington, and other Kentucky cities have local occupational license taxes that employers must withhold.

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Looking for a different view? Check out the Kentucky Payroll Laws overview page with final paycheck, vacation payout, and wage & hour details.