The state of Kentucky recently announced that the Taxable Wage Base will remain at $10,800 for 2021. This announcement comes shortly after the announcement that Kentucky will utilize Schedule A to determine tax rates for 2021. The tax rates for contributory employers under Schedule A are 0.3% to 2.4% for positive-rated employers and from 6.5% to 9% for negative-rated employers.

Initially, Kentucky determined Tax Rates to fall under Schedule E, the state’s highest tax rate schedule, and the Taxable Wage Base was set to $11,100. Kentucky will be issuing revisions to the 2021 tax rates that were mailed in December of 2020.  Unfortunately, details as to the timing of these rate revisions are unavailable at this time. These changes are intended to aid employers after the effects of COVID-19.

Details about 2022 tax rates have not yet been released.


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