Kentucky Tax
For Kentucky residents, you specify the employee's exemptions.
Deltek Modification Date - 1/18/19
Enter the following field information for residents of Kentucky on the Withholding grid on the Payroll tab of the Employees hub:
Automatically Calculated Variables
DPS 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 $2,590.
How DPS Calculates Tax
To calculate an employee's Kentucky State tax, DPS does the following:
- Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
- 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.
- Calculates the computed tax by applying Tax Calculation Method 1 to the taxable income.
- Subtracts a credit, if applicable, from the computed tax to determine the net income tax.
- 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.