Overview: When starting a business with employees in Kentucky, you must register for State Income Withholding Tax and State Unemployment Insurance (UI) Tax. Many cities and counties in Kentucky also impose local occupational license taxes, which require separate registration.
Important! This guide does not constitute legal or tax advice. You can consult a CPA or attorney for official guidance.
Taxes You Must Register For:
State Income Withholding Tax
Tax Agency: Kentucky Department of Revenue
Registration Steps
Go to the One Stop Business Portal
Click Start My Business and proceed to Register Your Business
Select Registration with the Secretary of State and Department of Revenue
Create an online gateway profile:
Set up a username, password, and security questions
Confirm via activation link sent to your email
Return to the portal and sign in
Under the My Businesses tab, select Register a New Business
Choose the business type and follow all required steps
You will be issued a Kentucky Withholding Account Number.
Account Format
Typically a 10-digit number
Update your Buddy Punch account with your Kentucky Withholding Account Number.
Need Help?
📞 Call: (502) 564-3306
📧 Email: [email protected]
State Unemployment Insurance (UI) Tax
Tax Agency: Kentucky Office of Unemployment Insurance
Registration Steps
Go to the Unemployment Insurance Self-Service Site
Click Employer Registration on the left panel
Acknowledge disclaimer and continue
Enter your Federal Employer Identification Number (FEIN)
Set up your password and security questions
Answer “Yes” to Third-Party Administrator if Check is assisting
Enter your mailing address and complete the employer information
You will receive a Kentucky Employer Identification Number (KEIN).
Account Format
9-digit KEIN assigned by the Office of Unemployment Insurance
Update your Buddy Punch account with your KEIN.
Need Help?
📞 Call: (502) 564-2272
Local Occupational Taxes (if applicable)
Tax Agency: Local City or County Governments
Type: Occupational License Fees / Local Withholding
Registration Steps
Determine the city and county jurisdictions where you operate or have employees
Contact each local agency to understand licensing and payroll tax obligations
If the jurisdiction is covered by the Kentucky Secretary of State directory, reference the Occupational Tax Directory
Each jurisdiction may assign its own local account number. Update your Buddy Punch account with all local tax account numbers.
Need Help?
📞 Secretary of State’s Office: (502) 782-7433