Appendix D-Tax Setup Information > Kentucky State Tax

Kentucky State Tax

Employers should use the Kentucky K-4 Employee Withholding Exemption Certificate.

Sage 100 Contractor does not use marital status when calculating Kentucky state withholding taxes. Instead, a credit for each exemption claimed on the Kentucky K-4 form is used. Nevertheless, Sage 100 Contractor still requires a marital status on the state tax calculation. Use the status that applies to each employee below. The marital status will have no effect on the amount of state withholding.

Status

Description

1-Single

Single Person

2-Married

Married

3-Head of Household

Head of Household

4-Married/Separate

Married Filing separate

5-Married/Joint

Married Two Incomes

To set up payroll calculations on an employee for Kentucky State Tax:

1 Open 5-2-1 Employees.
2 Using the data control, select the employee.
3 Click the Calculations tab.
4 In the Marital cell of the Kentucky Income Tax row, enter the corresponding marital status number.
5 In the Std Allow cell enter the number of exemptions/allowances claimed.
6 On the menu bar, click File, then click Save.
More resources

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