KRS 141.310 — Withholding of tax from wages paid by employer

(1) Every employer making payment of wages on or after January 1, 1971, shall deduct
and withhold upon the wages a tax determined under KRS 141.315 or by the tables
authorized by KRS 141.370.
(2) If wages are paid with respect to a period which is not a payrol l period, the amount
to be deducted and withheld shall be that applicable in the case of a miscellaneous
payroll period containing a number of days, including Sundays and holidays, equal
to the number of days in the period with respect to which the wages are paid.
(3) If wages are paid by an employer without regard to any payroll period or other
period, the amount to be deducted and withheld shall be that applicable in the case
of a miscellaneous payroll period containing a number of days equal to the numbe r
of days, including Sundays and holidays, which have elapsed since the date of the
last payment of wages by the employer during the calendar year, or the date of
commencement of employment with the employer during the year, or January 1 of
the year, whichever is the later.
(4) In determining the amount to be deducted and withheld under this section, the
wages may, at the election of the employer, be computed to the nearest dollar.
(5) The tables mentioned in subsection (1) of this section shall consider th e standard
deduction.
(6) The department may permit the use of accounting machines to calculate the proper
amount to be deducted from wages when the calculation produces substantially the
same result as set forth in the tables authorized by KRS 141.370. Pr ior approval of
the calculation shall be secured from the department at least thirty (30) days before
the first payroll period for which it is to be used.
(7) The department may, by administrative regulations, authorize employers:
(a) To estimate the wages which will be paid to any employee in any quarter of
the calendar year;
(b) To determine the amount to be deducted and withheld upon each payment of
wages to the employee during the quarter as if the appropriate average of the
wages estimated constituted the actual wages paid; and
(c) To deduct and withhold upon any payment of wages to the employee during
the quarter the amount necessary to adjust the amount actually deducted and
withheld upon the wages of the employee during the quarter to the amount
that would be required to be deducted and withheld during the quarter if the
payroll period of the employee was quarterly.
(8) The department may provide by regulation, under the conditions and to the extent it
deems proper, for withholding in addition to that otherwise required under this
section and KRS 141.315 in cases in which the employer and the employee agree to
the additio nal withholding. The additional withholding shall for all purposes be
considered tax required to be deducted and withheld under this chapter.
(9) Effective January 1, 1992, any employer required by this section to withhold
Kentucky income tax who assesses and withholds from employees the job
assessment fee provided in KRS 154.24 -110 may offset a portion of the fee against
the Kentucky income tax required to be withheld from the employee under this
section. The amount of the offset shall be four -fifths (4/5) of the amount of the
assessment fee withheld from the employee or the Commonwealth's contribution of
KRS 154.24-110(3) applies. If the provisions in KRS 154.24 -150(3) or (4) apply,
the offset, the offset shall be one hundred percent (100%) of the assessment.
(10) Any employer required by this section to withhold Kentucky income tax who
assesses and withholds from employees an assessment provided in KRS 154.22-070
or KRS 154.28-110 may offset the fee against the Kentucky income tax required to
be withheld from the employee under this section.
(11) Any employer required by this section to withhold Kentucky income tax who
assesses and withholds from employees the job assessment fee provided in KRS
154.26-100 may offset a portion of the fee against the Kentucky income tax
required to be withheld from the employee under this section. The amount of the
offset shall be four -fifths (4/5) of the amount of the assessment fee withheld from
the employee, or if the agreement under KRS 154.26 -090(1)(f)2. is consummated,
the offset shall be one hundred percent (100%) of the assessment fee.
(12) Any employer required by this section to withhold Kentucky income tax who
assesses and withholds from employees the wage assessment fee provided in KRS
154.25-040 may offset a portio n of the fee against the Kentucky income tax
required to be withheld from the employee under this section. The amount of the
offset shall be equal to the amount of the Kentucky income tax credit authorized for
the assessed employee who is entitled to recei ve a simultaneous adjustment
resulting from an approved jobs retention project as provided in KRS 154.25-040.
(13) Any employer required by this section to withhold Kentucky income tax who
assesses and withholds from employees the job development assessmen t fee
provided in KRS 154.32 -090 may offset the state portion of the assessment against
the Kentucky income tax required to be withheld from the employee under this
section.
(14) Any employer required by this section to withhold Kentucky income tax may be
required to post a bond with the department. The bond shall be a corporate surety
bond or cash. The amount of the bond shall be determined by the department, but
shall not exceed fifty thousand dollars ($50,000).
(15) Any employer required by this section to withhold Kentucky income tax who
assesses and withholds from employees an assessment provided in KRS 154.27-080
may offset the assessment against the Kentucky income tax required to be withheld
from the employee under this section.
(16) The Commonwealth may bring an action for a restraining order or a temporary or
permanent injunction to restrain or enjoin the operation of an employer's business
until the bond is posted or the tax required to be withheld is paid or both. The action
may be brought in the Franklin Circuit Court or in the Circuit Court having
jurisdiction of the defendant.
(17) An approved company and any associated loan -out entity under Subchapter 61 of
KRS Chapter 154 required to withhold Kentucky income tax from employees on all
qualified payroll expenditures shall withhold at the maximum rate provided in KRS
141.020, and remit and certify the withheld amount to the department.