Kentucky State Tax

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Posted on by WindyCityGP

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Since the 6/15/18 tax update (KY went to a flat tax rate and standard deduction amount), we've noticed that state tax withholdings for Kentucky employees has not calculated for any of them. The only state tax being withheld is if they have Additional State Withholdings amount entered on their Employee State Tax Maintenance window. In the employee Tax Maintenance window, "KY" is selected as the Transaction Entry Defaults, and it is defaulting on the transactions. If I run a SQL query on the UPR30300 where the PAYROLCD=KY and CHEKDATE='7/6/2018' (check date when missing state taxes was noticed), of the 260 transactions returned, 242 were for $0, and the other 18 were the ones that had additional amounts withheld. How can I get this to calculate?

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Community member 2 on at

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Kentucky State Tax

It seems that you are experiencing an issue with state tax withholdings for Kentucky employees since the tax update on June 15, 2018. From your description, it appears that state tax is not being calculated for employees unless an Additional State Withholdings amount is entered.

To troubleshoot this issue, there are a few steps you can take:

Review the tax update documentation: Verify that the tax update was installed correctly and that all necessary updates were applied. Check for any specific instructions or requirements related to Kentucky state tax calculations.

Verify employee tax setup: Double-check the Employee State Tax Maintenance window for each affected employee. Ensure that the correct state code "KY" is selected as the Transaction Entry Defaults. Confirm that the employees' state tax settings are configured accurately, including their filing status, exemptions, and any other relevant details.

Check payroll calculation rules: Examine the payroll calculation rules or formulas that determine the state tax withholding calculations. Ensure that the rules are correctly configured to consider the flat tax rate and standard deduction amount introduced in the tax update. Check for any customizations or overrides that might be interfering with the calculations.

Review system parameters: Check the system parameters related to state tax calculations. Look for any specific settings or flags that could affect Kentucky state tax withholding. Consult the system documentation or reach out to your software provider for guidance on the appropriate settings.

Consult with your software provider or IT department: If the issue persists and you are unable to identify the cause, it's advisable to seek assistance from your software provider or IT department. They may have access to additional resources, expertise, or specific knowledge about the software system you are using.

By following these steps and seeking professional assistance if necessary, you should be able to identify and resolve the issue with state tax withholding calculations for Kentucky employees.

For more information on Kentucky sales tax, take professional help.
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WindyCityGP 1,045 on at

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RE: Kentucky State Tax

Hi Leslie! I've never had a tax update not "take", but that was the case with the past one. I compared your "KY" tax setup to mine, and mine had "Apply Tax Table", not "Apply Flat Tax Rate" in the Sequencing. I changed that and ran a quick test, and it calculated the tax :).

Thank you!!
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L Vail 65,271 on at

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RE: Kentucky State Tax

Hi,

Have you taken a look at the KY tax tables to make sure the tax update 'took'?

Here's the Payroll Tax Filing Status window for Kentucky.

Here's the Payroll Tax Setup window for KY.

Do your tax windows look like the screenshots above? Also, make sure the Employee Tax Maintenance window shows KY as the Tax Withholding State:

Tax