Sources checked:
Quick answer. Kentucky: $12,000 SUTA wage base (2026); 2.7% new employer rate; new hires reported in 20 days; $7.25 minimum wage; meal breaks required. 16 of 20 checklist items are confirmed on official pages; 4 are marked not confirmed, with the page to check.
Kentucky 2027 employer checklist
1. Register for unemployment tax and withholdingBefore the first payroll.
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ConfirmedOpen a state unemployment tax account
Register in the Kentucky Unemployment Insurance Program (KUIP) through the Kentucky Career Center site, then choose Employer Registration (Employer Guide 2026).
Source: Kentucky Office of Unemployment Insurance, checked November 2026 · More: Kentucky unemployment tax 2027
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Not confirmedTaxable wage base for 2027
Not confirmed — check Kentucky OUI: Employer Guide 2026.
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ConfirmedTaxable wage base for 2026 (the latest published)
$12,000 per employee in 2026.
Kentucky OUI Employer Guide 2026: $12,000, "subject to change pending future legislative action."
Source: Kentucky OUI: Employer Guide 2026, checked November 2026 · More: Kentucky unemployment tax 2027
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ConfirmedNew employer tax rate
2.7% for a new employer.
Employers with fewer than three years of Kentucky experience get at least 2.7%; the rate can be higher based on their reserve ratio (Employer Guide 2026).
- New construction employers: 9%: Assigned the highest rate on the schedule in effect (9.000% on Schedule A for 2026) until they've had Kentucky employees for 12 consecutive quarters (Employer Guide 2026).
Source: Kentucky OUI: Employer Guide 2026, checked November 2026 · More: Kentucky unemployment tax 2027
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ConfirmedQuarterly wage reports and payments
Reports and payments are due by the last day of the first month after the quarter (April 30, July 31, October 31, January 31); a weekend or state holiday moves it to the next business day (Employer Guide 2026).
Source: Kentucky OUI: Employer Guide 2026, checked November 2026 · More: Kentucky unemployment tax 2027
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Not confirmedState income tax withholding
The state has an income tax (confirmed); the employee withholding certificate is not confirmed in our files. Not confirmed — check Kentucky DOR: Employer Payroll Withholding.
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ConfirmedWorkers who live in a neighboring state
Reciprocity partners named by the state: Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia and Wisconsin. Their residents can give you Form 42A809 (Certificate of Nonresidence).
Kentucky has reciprocal agreements with specific states.
Source: Kentucky Department of Revenue: 2025 Form 740-NP instructions, reciprocal agreements, checked November 2026 · More: Kentucky tax reciprocity
2. Report new hires and check work eligibilityFor every hire, rehire and, where the state says so, contractor.
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ConfirmedReport each new hire to the state
Within 20 days of the hire date. Kentucky law counts from the hiring or return to work of the employee.
- Who: Employees who live or work in Kentucky, including those rehired or returning to work.
- How: online, fax, mail. Online at ky-newhire.com; fax (800) 817-0099; mail P.O. Box 138007, Sacramento, CA 95813-8007.
Source: Official page, checked November 2026 · More: First hire checklist for Kentucky
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Not confirmedE-Verify for private employers
Not confirmed — check House Bill 673 (2025 Regular Session) record, Kentucky General Assembly.
3. Set pay at the minimum wage: January 1 and mid-yearCheck every hourly and tipped rate against the floor.
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ConfirmedMinimum wage now (2026)
$7.25 an hour.
$7.25; Kentucky adopts the federal rate if it's higher (US DOL).
Source: U.S. Department of Labor: State Minimum Wage Laws (updated November 5, 2026), checked November 2026 · More: Minimum wage by state 2027
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ConfirmedMinimum wage change in 2027
$7.25 an hour; no scheduled change in our data.
US DOL's state table (updated November 5, 2026) shows no scheduled change.
Source: U.S. Department of Labor: State Minimum Wage Laws (updated November 5, 2026), checked November 2026 · More: Minimum wage by state 2027
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ConfirmedTipped employees
Cash wage of at least $2.13 an hour in 2027, with tips making up the rest.
Federal rule: a cash wage of at least $2.13 with tips making up the rest of $7.25 (US DOL tipped table).
Source: U.S. Department of Labor: Minimum Wages for Tipped Employees (revised July 1, 2026), checked November 2026 · More: Minimum wage by state 2027
4. Paid sick leaveAccrual, limits and notice.
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Not confirmedPaid sick leave
Not confirmed — check KRS 337.055: Payment of all wages or salary upon dismissal or voluntary leaving.
5. Meal and rest breaksAdults and workers under 18.
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ConfirmedMeal breaks for adults
A reasonable lunch period, as close to the middle of the shift as possible, starting no sooner than 3 hours and no later than 5 hours into the shift. The statute sets no length.
nor more than five (5) hours from the time his work shift commences.
Source: KRS 337.355 Lunch period requirements, checked November 2026 · More: Kentucky meal break laws
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ConfirmedRest breaks for adults
A paid rest period of at least 10 minutes in each 4 hours worked, separate from the lunch period.
at least ten (10) minutes during each four (4) hours worked.
Source: KRS 337.355 Lunch period requirements, checked November 2026 · More: Kentucky meal break laws
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ConfirmedBreaks for workers under 18
Minors under 18 can't work more than 5 hours in a row without a lunch period of at least 30 minutes, and the employer records when it starts and ends. (Ages: under 18.)
shall not be permitted to work more than five (5) hours continuously without an interval of at least thirty (30)
- Waivers: A collective bargaining agreement or a mutual agreement between employer and employee can set the lunch period differently. For rest periods, an agreement giving at least 10 minutes for each 4 hours takes the place of the statute.
Source: KRS 337.355 Lunch period requirements, checked November 2026 · More: Kentucky meal break laws
6. Workers' compensationCoverage, posters and proof.
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ConfirmedWorkers' compensation insurance
Every employer with one or more employees. Family members, temporary workers and part-time workers count as employees.
employers with one or more employees are required to obtain and maintain a policy of workers' compensation insurance.
- Poster: Display a Workers' Compensation Posting Notice at the primary office and where employees handle payroll and personnel matters.
- Check a policy: The cabinet's FAQ lists a compliance contact at LaborKYWCCompliance@ky.gov.
Source: Frequently Asked Questions - Kentucky Education and Labor Cabinet, checked November 2026 · More: Workers' comp requirements by state
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ConfirmedIf there's no coverage
$100 to $1,000 for each employee for every day without coverage.
Source: Frequently Asked Questions - Kentucky Education and Labor Cabinet, checked November 2026 · More: Workers' comp requirements by state
7. Final payWhen someone leaves.
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ConfirmedFinal pay when you let someone go
By the next normal pay period after the separation or 14 days after it, whichever is later.
whichever last occurs
Source: KRS 337.055: Payment of all wages or salary upon dismissal or voluntary leaving, checked November 2026 · More: Final paycheck laws by state
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ConfirmedFinal pay when an employee quits
By the next normal pay period after the separation or 14 days after it, whichever is later.
whichever last occurs
Source: KRS 337.055: Payment of all wages or salary upon dismissal or voluntary leaving, checked November 2026 · More: Final paycheck laws by state
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ConfirmedFor a laid-off employee: the state's work search rule
At least 5 work search activities each week; at least 3 must be job applications or interviews.
Source: Kentucky Claimant Guide, PAM-UI-400 (Rev. 02/26), checked November 2026 · More: Kentucky work search rules
8. Year-end W-2 and 1099 filingState copies, due in early 2027 for 2026 pay.
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ConfirmedState copies of W-2s and 1099s
Only report 1099 data to the Department when Kentucky tax has been withheld.
- W-2s: January 31
- 1099s: January 31
- Annual reconciliation: Form K-5 (reports W-2, W-2G and 1099 withholding statement information), due January 31.
- Electronic filing: Paper copies of W-2s and 1099s aren't accepted. The online K-5 can't exceed 25 statements, mail-in K-5 is only for fewer than 26 statements, and larger filers send an EFW2 or Publication 1220 file (without a K-5).
Source: Kentucky DOR: Employer Payroll Withholding, checked November 2026 · More: 1099 and W-2 deadline finder
Key dates for 2027
Only the dates our files state. A date on a weekend or holiday is flagged, not moved, unless the agency's page says it moves.
| Date | What | Source |
|---|---|---|
| Sunday, January 31, 2027 | Unemployment tax report and payment for the fourth quarter of 2026 Falls on a Sunday. This is the date as the agency states it; check its rule for weekend due dates (see step 1). | |
| Sunday, January 31, 2027 | W-2s, 1099s with Kentucky withholding and Form K-5 Sunday, January 31, 2027 is a Sunday. The agency's page we opened doesn't say whether it moves to the next business day; file by the Friday before to be safe, or ask the agency. | |
| Monday, February 1, 2027 | Form W-2 Copy A (with W-3) to SSA, and employee copies (federal) | |
| Monday, February 1, 2027 | Form 1099-MISC copies to payees (federal) | |
| Monday, February 1, 2027 | Form 1099-NEC to the IRS and to each payee (federal) | |
| Monday, March 1, 2027 | Form 1099-MISC to the IRS on paper (federal) | |
| Wednesday, March 31, 2027 | Form 1099-MISC to the IRS electronically (federal) | |
| Friday, April 30, 2027 | Unemployment tax report and payment for the first quarter of 2027 | |
| Saturday, July 31, 2027 | Unemployment tax report and payment for the second quarter of 2027 Falls on a Saturday. This is the date as the agency states it; check its rule for weekend due dates (see step 1). | |
| Sunday, October 31, 2027 | Unemployment tax report and payment for the third quarter of 2027 Falls on a Sunday. This is the date as the agency states it; check its rule for weekend due dates (see step 1). |
Still to confirm
- Taxable wage base for 2027: check Kentucky OUI: Employer Guide 2026
- State income tax withholding: check Kentucky DOR: Employer Payroll Withholding
- E-Verify for private employers: check House Bill 673 (2025 Regular Session) record, Kentucky General Assembly
- Paid sick leave: check KRS 337.055: Payment of all wages or salary upon dismissal or voluntary leaving
Kentucky kit
Kentucky Employer Compliance Kit 2027
This checklist as a printable document with every source link and check date, a 2027 deadline calendar, a start-here guide, and an Excel workbook with a deadline tracker and new-hire and pay-change checklists, all built from the same data as this page.
Get the kit, $19 Or the 2027 Employer Compliance Bundle (7 Kits), $59
General information, not legal, tax or payroll advice. We are not lawyers, and MCC Solutions is not a law firm or a payroll service. Nothing here guarantees compliance. Rules change, cities and counties can add their own, and the agency's own page has the final word.
Common questions
What is the Kentucky unemployment tax wage base for 2027?
Not confirmed in our data files. Check Kentucky OUI: Employer Guide 2026 (https://ui.ky.gov/Documents/KY-OUI_Employer%20Guide_2026.pdf). The latest published base is $12,000 per employee in 2026.
How soon must a Kentucky employer report a new hire?
Within 20 days of the hire date. Kentucky law counts from the hiring or return to work of the employee.
What is the Kentucky minimum wage in 2027?
$7.25 an hour; no scheduled change in our data. US DOL's state table (updated November 5, 2026) shows no scheduled change.
Does Kentucky require paid sick leave?
Not confirmed in our data files. Check KRS 337.055: Payment of all wages or salary upon dismissal or voluntary leaving (https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=32050).
When is a final paycheck due in Kentucky?
If the employer ends the job: By the next normal pay period after the separation or 14 days after it, whichever is later. If the employee quits: By the next normal pay period after the separation or 14 days after it, whichever is later.
Does Kentucky require state W-2 or 1099 filing?
Only report 1099 data to the Department when Kentucky tax has been withheld. W-2s: January 31 1099s: January 31
Do Kentucky employers need workers' comp?
Every employer with one or more employees. Family members, temporary workers and part-time workers count as employees.
Related: Employer compliance by state · 2027 changes for employers