1.45% - Medicare Rate
Up To 3.3% - State Taxes
Minimum wage is $7.25 per hour.
Paid Time Off
The state law does not require official vacation time to be given to the employees. It depends on the agreement with the employer.
No official law requires the employer to give employees sick days. Depends on the prior agreement upon start of employment.
There are 10 official holidays, however private employers are not required to provide either time off or overtime pay on these days.
The state sales tax is 6%.
Employer: contributes a percentage of the total payroll per month for the employees pension funds. The contribution percentage is not specified.
Employee: contributes a percentage of the total payroll per month for pension funds. The contribution percentage is not specified.
As of 2011, after the Tax Relief, Unemployment Insurance Re-authorization and Job Creation Act of 2010, the Social Security tax rate is 4.2 percent of an employee's wages. In addition, there is a limit to the amount of wages that are subject to Social Security taxes. In 2016, the taxable wage base is be $118,500.
Kentucky follows “employment at will” doctrine which means both the employee and employer are allowed to terminate the employment at any given time without a reason Therefore at the time of termination, the employer much pay all the necessary wages up to the day of termination.
While there is no official period required, the general practice is is 2 weeks.
Kentucky law does not either require or prohibit severance payments. It depends on the employer’s agreement with the employee.