Quick Facts
| Item | Value |
|---|---|
| Minimum Wage | $7.25/hr |
| Pay Frequency | Twice monthly |
| Overtime Rules | 1.5x after 40 hrs/week + 1.5x on 7th consecutive day; live-in exempt |
| Record Retention | 4 years |
State Income Tax
Withholding Form: K-4
Unemployment Insurance
Registration: Register online
Workers' Compensation
Threshold: 2+ workers at 40+ hrs/week
New Hire Reporting
Local Taxes
| Locality | Tax Type | Rate | Notes |
|---|---|---|---|
| Most municipalities | Local Income Tax | -- | Most KY municipalities impose local income tax |
Required Forms
Form K-4
Kentucky state income tax withholding form
Purpose: Employee completes for state tax withholding
Key Deadlines
| Deadline | Date | Description | Frequency |
|---|---|---|---|
| New Hire Reporting | Within 20 days of hire | Report new employees within 20 days to the state | at-event |
State Agencies
Sources
Frequently asked
- Do I owe nanny tax in Kentucky?
- If you pay a household employee $3,000 or more in 2026, you owe federal FICA (Social Security and Medicare). If you pay $1,000 or more in any calendar quarter, you owe FUTA. Kentucky state unemployment kicks in once you exceed the state's wage threshold — typically the first $12,000 of wages.
- What is the Kentucky SUI rate for a new household employer?
- New household employers in Kentucky start at 2.7%, applied to the first $12,000 of each employee's wages per year. Your rate can change once the state assigns you an experience rating, usually after 2–3 years.
- How much state income tax do I withhold for a Kentucky nanny?
- Kentucky applies a flat 3.5% state income tax. You withhold this from each paycheck after applying any state standard deduction or exemptions based on your employee's state withholding certificate.
- What forms do I need to file for a household employee in Kentucky?
- Federally: Schedule H (filed with your personal Form 1040), W-2 and W-3 (given to your employee and filed with the SSA), and quarterly EFTPS deposits if your liability exceeds $1,000/year. In Kentucky: new-hire reporting, quarterly SUI filings, and any required state income tax withholding returns. CareTax generates all federal reference documents and points you to the Kentucky state portals.