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Dividing the amount of tax by the number of pay periods per year to arrive at the amount of federal tax withholding to be deducted per pay period.
Your Income Taxes Breakdown TaxMarginal Tax RateEffective Tax RateState5.00%4.82%Local1.00%1.00%Total Income Taxes25.89%Income After Taxes4 more rows Jan 1, 2023
Withhold half of the total 15.3% from the employees paycheck (7.65% = 6.2% for Social Security plus 1.45% for Medicare). The other half of FICA taxes is owed by you, the employer. For a hypothetical employee, with $1,500 in weekly pay, the calculation is $1,500 x 7.65% (. 0765) for a total of $114.75.
Compute tax on wages using the 5% Kentucky flat tax rate to determine gross annual Kentucky tax. Divide the gross annual Kentucky tax by the number of annual pay periods to determine the Kentucky withholding tax for the pay period.
Kentucky imposes a flat income tax of 5%. The tax rate is the same no matter what filing status you use. Aside from state and federal taxes, many Kentucky residents are subject to local taxes, which are called occupational taxes.
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You may be exempt from withholding for 2021 if both the following apply: For 2020, you had a right to a refund of all Kentucky income tax withheld because you had no Kentucky income tax. liability, and. For 2021, you expect a refund of all your Kentucky income tax withheld.
To calculate tax withholding amount, employers determine the number of allowances employees claim on their IRS Form W-4 (Employees Withholding Allowance Certificate) and refer to the income tax withholding tables provided by the IRS in Publication 15 which give ranges based on pay frequency, filing status and
The ​Kentucky Withholding Tax rate will be 4.5% for tax year 2023.

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