Wage-deduction statements
A covered employer with ten or more employees that makes wage deductions must furnish a paper or electronic statement showing the amount of each deduction and its general purpose.
Kentucky pay-statement rules and document checks (2026)
This 2026 Kentucky reference is for people assembling an accurate earnings statement or reviewing a pay record. Begin with the jurisdiction-specific rules and the source-backed subjects below; the presence of a downloadable paystub template does not itself determine an employer’s legal duties. The reviewed Kentucky material addresses wage-deduction statements, state income tax withholding, local occupational taxes.
- Official-source references
- State and federal context
- Practical document checks
Overview
First, determine which rules apply
Kentucky’s state statement rule turns on both employer size and deductions. KRS 337.070 covers employers that employ ten or more people and make deductions from wages or salaries. When the rule applies, the employee receives a paper or electronic statement at the time of payment showing the amount of each deduction and the general purpose of the deduction. If the statement is electronic, the employer must provide access to a computer and printer for the employee to consult and print it.
That is not the same as a universal statutory requirement listing hours, gross earnings, net wages, pay-period dates, employer address, and every other field commonly associated with a modern pay record. A PayStubCheck page should preserve that distinction while still encouraging a clear, professional payroll record.
Kentucky’s strongest payroll complexity often comes from local occupational-license taxes. Employers can face different withholding rules depending on the city or county where the employee works. Louisville Metro is a clear example: current city instructions show a 2.2% resident rate and 1.45% nonresident rate for covered occupational-tax wages. Work location therefore matters even when the state deduction-statement rule is unchanged.
Key findings from the official source material
State income tax withholding
Use Kentucky’s current 2026 withholding tax tables and computer formula. The current tables reflect a 3.5% state-rate structure within the withholding calculation rather than a generic flat-paycheck shortcut.
Local occupational taxes
Kentucky payroll often includes city or county occupational-license withholding. Louisville Metro, for example, applies different resident and nonresident rates to covered compensation earned in the jurisdiction.
Workers’ compensation
Kentucky generally requires workers’ compensation coverage when an employer has one or more employees subject to the Act, with statutory exemptions and election rules for particular workers or entities.
Trusted sources
Primary sources for Kentucky
Consult these agency and research references when checking the rules for Kentucky. The publication date and availability of each link should be rechecked before relying on its contents.
Document checklist
What to check before using an earnings statement
Use the Kentucky requirements as a document-review list. Identify the governing employer or worker category, and distinguish mandatory fields from good recordkeeping practices.
Confirm employee-count coverage
Determine whether the employer has ten or more employees. KRS 337.070’s deduction-statement requirement is written for employers at or above that threshold that make wage or salary deductions.
Information to include
When the rule applies, state the amount of each deduction and the general purpose for which the deduction is made.
Electronic delivery
Kentucky permits an electronic statement, but the employer must provide the employee access to a computer and printer for consult and printing.
Related business obligations
Apply current Kentucky withholding, unemployment, workers’ compensation, and applicable city/county occupational taxes separately from the state deduction-statement requirement.
After payday
Delivery, access, and records after payday
Paper or electronic statement
KRS 337.070 expressly permits either paper or electronic delivery for the covered deduction statement. If the employer chooses electronic delivery, the employee must have access to a computer and printer for consult and printing.
Supporting pay documentation records
The deduction statement should reconcile to the employer’s actual supporting wage records. Maintain enough documentation to support wages, deductions, state withholding, local occupational withholding, unemployment reporting, workers’ compensation payroll, and payment history for the retention periods that apply under each program.
Tax withholding
2026 withholding and related calculations
Use Kentucky’s current Department of Revenue tax withholding schedules or computer formula for state withholding. Then separately determine whether the employee’s work location creates a city or county occupational-license tax obligation. Do not combine the two concepts into one generic “Kentucky tax rate.”
2026 Kentucky Withholding Tax Tables
Refer to the current 2026 tables and computer formula for Kentucky state withholding. The published formula reflects the current 3.5% state-rate structure and payroll-period calculations.
Kentucky Department of Revenue withholding resources
Refer to the Department’s current business and withholding resources for forms, filing, and employer guidance.
Document-generation boundary: Where a source discusses remitting taxes or employer contributions, PayStubCheck presents that information as context only. Preparing a document does not complete a remittance, file a return, or establish that a calculated figure is correct for a particular worker.
State vs. local rules
Local rules and coverage exceptions
Kentucky allows local occupational-license taxes, making work location an important payroll input. Employers should not assume the state withholding calculation completes the payroll-tax analysis.
Step-by-step process
A practical document review sequence
1Confirm state statement coverage.
Determine whether the employer has ten or more employees and is making wage deductions.
2Confirm work location.
Identify the city and county in which the employee performs services and whether occupational withholding applies.
3Enter pay documentation details.
Add wages, hours or salary, deductions, state withholding information, and local tax inputs.
4Review and generate.
Consult Kentucky and local calculations, then complete the standalone pay record or create the standalone statement needed.
5Retain supporting records.
Retain documentation supporting state deductions, local occupational taxes, unemployment, workers’ compensation, and wage payments.
A simpler way
Using PayStubCheck responsibly
Use the Kentucky references above to check the kind of earnings document you are preparing, verify the dates and figures, and decide whether the document must contain specific information. PayStubCheck offers standalone document preparation; it does not run payroll, retain authoritative employer payroll ledgers, give individualized legal advice, or file tax returns on the user’s behalf.
United States document note: Where state-specific withholding or local requirements matter, compare your entries with the appropriate official source before relying on a generated statement.
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Review every figure on a watermarked preview before any download.
- Official-source guidance
Each jurisdiction page lists the agency references it draws on.
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References
Official publications and research links
- 01View 2026 withholding tables (opens in a new tab)revenue.ky.gov
- 02View Louisville instructions (opens in a new tab)louisvilleky.gov
- 03View employer responsibilities (opens in a new tab)elc.ky.gov
- 04Kentucky KRS 337.070 (opens in a new tab)apps.legislature.ky.gov
- 05Official source (opens in a new tab)revenue.ky.gov
Questions
Questions about Kentucky earnings records
Does Kentucky require every employer to issue the same itemized pay stub?
No. KRS 337.070 specifically covers employers with ten or more employees that make deductions from wages or salaries. Covered employers are required to furnish a paper or electronic statement showing the amount and general purpose of each deduction.
What if the Kentucky employer uses electronic statements?
The statute permits electronic statements, but the employer must provide access to a computer and printer for the employee to consult and print the statement.
Does Kentucky require gross and net wages on the statement under KRS 337.070?
The cited provision specifically requires the amount of each deduction and the general purpose of the deduction. A professional payroll record may include additional wage information, but the page should not present those extra fields as though KRS 337.070 expressly lists them.
How is Kentucky income tax withheld in 2026?
Employers should refer to the current Kentucky tax withholding schedules or computer formula. The 2026 materials reflect the current state-rate structure and payroll-period calculations rather than a generic one-step percentage for every situation.
Why do local taxes matter so much in Kentucky payroll?
Cities and counties can impose occupational-license taxes on compensation. Louisville Metro, for example, currently publishes a 2.2% resident rate and 1.45% nonresident rate for covered wages. Other jurisdictions refer to their own rules and rates.
Does Kentucky workers’ compensation apply to a one-employee business?
Kentucky generally requires coverage for employers with one or more employees subject to the Act, although exemptions and special elections can apply. Check the official employer-responsibilities guidance for the specific business.
Keep your records in check
Prepare a Kentucky earnings record with a live preview.
Enter verified details, review the watermarked preview, and keep your supporting records with the finished document.