TAXES 16-03, Kentucky Local Income Tax Withholding
Published: January 11, 2016
Effective: Pay Period 01, 2016
Summary
The occupational tax formula for Boone County, Kentucky, will include the following changes:
- The maximum taxable wage base will increase from $58,627 to $58,727.
- The maximum annual tax will increase from $469.02 to $469.82.
- The employee tax rate will remain at 0.8 percent.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
County Name |
State/County Codes |
County Tax Status |
Boone |
21/015 |
Duty Station/mandatory |
Clay |
21/051 |
Duty Station/voluntary |
Jefferson |
21/111 |
Duty Station/mandatory |
Kenton |
21/117 |
Duty Station/mandatory |
Madison |
21/151 |
Duty Station/mandatory |
McCracken |
21/145 |
Duty Station/mandatory |
Withholding Formula Effective Pay Period 01, 2016
- Multiply the gross biweekly wages by 26 to obtain the annual wages.
- To determine the annual Kentucky county income tax withholding, multiply the gross annual wages by the appropriate county income tax percentage in the table below.
County Name
State/County Codes
Resident Percentage
Nonresident Percentage
County Tax Status (Duty Station = DS Residence = R)
Boone
21/015
0.8%1
0.8%1
DS
Clay (voluntary)
21/051
1.00%
1.00%
DS
Jefferson
21/111
2.20%
1.45%
DS
Kenton
21/117
0.7097%2
0.7097%2
DS
Madison
21/151
1.00%
1.00%
DS
McCracken
21/145
1.00%
1.00%
DS
1 Maximum taxable wage base of $58,727 (maximum annual tax of $469.82) applies to the 0.8-percent occupational tax. Maximum taxable wage base of $16,666 (maximum annual tax of $25) applies to the 0.15-percent Senior Citizen and Mental Health Tax.
2 Maximum taxable wage base of $118,500 (maximum annual tax of $280.00) applies to the 0.7097-percent occupational tax.The lower taxable wage base limit remains $25,000. The payroll tax rates remain 0.7097% on wages up to $25,000 and 0.1097% on wages greater than $25,000 and up to the OASDI wage maximum of $118,500.
- Divide the annual Kentucky city income tax withholding by 26 to obtain the biweekly Kentucky city income tax withholding.
Additional Resources
To view the updated tax formula go to the HR and Payroll Clients page and click the Publications tab in the center ribbon. Select U.S. Income Tax Formulas from the Publication menu to launch the tax map. Click the desired State from the map provided for the formula.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the Internet using the Requester Console.