Payroll Tax Information
The University of Kentucky is required by law to withhold taxes from various types of earnings paid to our faculty, staff, and students. Employees are generally taxed according to the university’s primary place of business, which is Kentucky. These earnings are paid through monthly and biweekly payrolls. After each payroll processing, the taxes withheld are sent to federal, state and local agencies on behalf of the employee. At the end of each calendar year, University Payroll Services reports annual income and tax withheld on a form W-2 or 1042S. Faculty, staff or students receiving one of these forms will need to file an income tax return with federal and state agencies by April 15th of the following year.
At this time, myUK Employee Self-service should be used to update only Federal and Kentucky income tax withholding.
Current tax forms are located here https://www.uky.edu/ufs/payroll-services-tax-form-links
For tax withholding purposes, the University of Kentucky is currently registered in Kentucky and the following 21 states.
The University is not withholding state and local taxes for states other than Kentucky and the 21 identified above.
For all other employees, whose primary work location is NOT Kentucky or one of the 21 states where the University is registered, quarterly tax estimates should be filed and paid to the applicable state and local authorities.
Employees, whose primary work location is one of the 21 identified states, who wish to update their state income tax withholding must complete a Remote Work Location Form and a state income tax withholding certificate for their perspective state and submit it to ukpayroll@uky.edu.
Note: Payroll Services cannot provide tax advice. We strongly encourage employees to seek your own tax professional or contact the IRS.
Your federal income taxes withheld from your pay are not affected by work location. The Internal Revenue Service suggests employees review their W-4 each year and complete a new W-4 when their personal or financial situation changes.
These four steps are critical to ensuring not only that the university complies with taxation and employment laws, but that you receive the correct net payment.
The University of Kentucky is registered in Kentucky and the following 21 states.
The University plans to register for tax withholding in additional states based on the number of individuals authorized to work in other states. The goal is to prioritize registration in states with two or more employees in the first quarter of 2023.
Once approved with an effective date, you will no longer have Kentucky state specific taxes withheld from your pay. Instead, you will be treated as an Ohio employee with all applicable Ohio state withholding taxes deducted from your pay.
Until you submit the information requested below, you will be taxed according to the university’s primary place of business, which is Kentucky. All applicable KY payroll withholdings will be withheld from your pay.
Using your UK email account, submit a request via email to ukpayroll@uky.edu to provide your name, person id, work address, department name and contact phone number that can verify your work address and effective date. You must also include a statement saying you request to be exempt from Kentucky state taxes and you understand the University of Kentucky is not able to collect taxes for other states at this time and that you will be responsible for paying any due tax to the current state in which you reside. You should file and pay quarterly estimates to the applicable state and local agencies since the University is not withholding state and local taxes.
If you live in one of the reciprocal states, you must complete the Kentucky’s K-4 form, line 4 on page one and section 4 on page two. After completing and electronically signing the form, using your UK email account, submit the forms via email to ukpayroll@uky.edu
You would need to complete a withholding form for the appropriate state(s) located here. Taxes will be withheld based on the percentage of work time reported for each work state (i.e. 60% Kentucky, 40% Ohio) with the pro-rata state payroll taxes withheld from your pay.
Remember It is the employee’s responsibility to keep their personal data accurate in myUK Employee Self Service.
Within this page we have provided links to relevant tax information and NRA documents