NECESSITY, FUNCTION, AND CONFORMITY:
131.130(1) authorizes the
Kentucky Department of Revenue to promulgate administrative regulations for the
administration and enforcement of all tax laws of this state.
141.335(2) authorizes the
department to establish the form and required contents of the withholding
statement to be filed pursuant to
131.250 authorizes the department to
establish requirements for electronic filing. This administrative regulation
establishes those requirements.
Acceptable Forms and Information.
Employers shall provide to their
employees the following forms as withholding statements to report Kentucky
(a) Federal Form W-2, "Wage and
(b) Federal Form
W-2G, Certain Gambling Winnings;
(c) Federal Form 1099 series; or
(d) Facsimiles of the forms listed in this
subsection that are acceptable to the Internal Revenue Service.
The statements provided by
employers to their employees shall contain:
(a) The state name;
(b) The employer's Kentucky withholding
(c) The Kentucky
taxable wages; and
(d) The Kentucky
Termination of Business.
If the employer terminates its business, the withholding statement shall be
provided to its employees for the calendar year of termination within thirty
(30) days of termination.
employer shall submit its final return and withholding statements to the
department within the same thirty (30) day period.
Incorrect and Duplicate
(1) If it is
necessary to correct a withholding statement after it has been issued to an
employee, the Federal Form W-2C or a new withholding statement shall be clearly
marked "Corrected", and a copy submitted to the department within thirty (30)
days of issuance.
(2) If the
withholding statement is lost or destroyed, the employer shall prepare and
issue a duplicate copy to the employee that is clearly marked "Duplicate"
within thirty (30) days of the request by the employee.
(1) Employers shall provide withholding
statement information to the department in an acceptable format by January 31
following the close of the calendar year.
(2) An employer who issues twenty-six (26) or
more withholding statements annually shall utilize an acceptable form of
(3) An employer
who issues less than twenty-six (26) withholding statements annually shall file
either Form K-5, "Kentucky Employer's Report of Withholding Tax Statements,"
Revenue Form 42A805 with the department or utilize another acceptable form of
(a) The department shall provide to employers
by October 31 of each year information about the types of electronic filing
methods acceptable to the department.
(b) Acceptable electronic filing methods
shall include all of the acceptable methods utilized by the Social Security
Administration and the Internal Revenue Service that can be supported by the
Withholding statement information submitted electronically to the department
via a physical media device (e.g., CD, USB, external hard drive, etc.) shall be
accompanied by Form 42A806 "Transmitter Report" upon submission.
(5) If an employer is required to
utilize an electronic method of filing, it shall file the withholding
statements in an acceptable electronic format unless the department grants a
written waiver of the requirement.
(1) Failure to comply with the provisions of
this administrative regulation may result in the issuance of penalties in
131.180 unless reasonable cause is
Examples. One (1) or
more of the penalties may apply if the employer:
(a) Fails to file timely;
(b) Fails to include all information required
to be shown on the withholding statement;
(c) Includes incorrect or illegible
information on the withholding statement and fails to file
(d) Files on paper if
required to file electronically; or
(e) Fails to provide timely or correct payee
statement to employees.
The forms and materials prescribed
herein may be inspected, copied, or obtained, subject to applicable copyright
law, from 8:00 a.m. until 4:30 p.m. at the Kentucky Department of Revenue, 501
High Street, Frankfort, Kentucky 40601, at any Kentucky Department of Revenue
Taxpayer Service Center during operating hours, and on the department's website