Kentucky Tax

For Kentucky residents, you specify the employee's exemptions.

Deltek Modification Date - 12/16/16

Enter the following field information for residents of Kentucky on the Withholding grid on the Payroll tab of the Employees hub:

Field	Description
Status	Kentucky’s tax calculations do not use the Status field.
Exemptions	Enter the total number of exemptions claimed by the employee on Kentucky Standard Withholding Certificate, Form K-4. This figure includes: Personal exemptions for self and spouse not claimed on other Form K-4. Additional exemptions for age and blindness. Exemptions for dependents. If the employee did not submit Form K-4, enter zero in this field.
Other Exemptions	Kentucky’s tax calculations do not use the Other Exemptions field.

Automatically Calculated Variables

Deltek automatically computes the following variables, which are used in determining the net income tax.

Standard Deduction

The standard deduction is a fixed amount deduction applied to all employees. The amount of the deduction is $2,480.

Credit

The credit is based on the number of exemptions entered in the first Exemptions field. The amount of the credit is determined by multiplying the number of exemptions by $10.

How Deltek Calculates Tax

To calculate an employee's Kentucky State tax, Deltek does the following:

1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
2. Subtracts the employee's standard deduction and 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine taxable income.
3. Calculates the computed tax by applying Tax Calculation Method 1 to the taxable income.
4. Subtracts a credit, if applicable, from the computed tax to determine the net income tax.
5. Divides the net income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.