Before you run your first payroll in Kentucky, you need to register for the required federal, state, and local employer accounts. You may also need workers’ compensation insurance and completed employee forms.

This article explains the Kentucky employer registration steps you may need to complete before paying employees.

For Kentucky employer registration help, check out our partner, CorpNet.

If you do not already have one, apply for an Employer Identification Number, also called an EIN or FEIN.

You can apply for an EIN online with the IRS. There is no cost to apply for an EIN.

To learn more, read Your Step-by-step Guide on How to Apply for EIN.

EFTPS stands for Electronic Federal Tax Payment System. EFTPS lets employers make federal tax payments online and view federal tax filings.

EFTPS enrollment is not mandatory, but we recommend it. You will need an EFTPS account if you want to make federal tax payments online or view tax filings Patriot made on your behalf.

You can register for EFTPS online.

To learn more, read What Is EFTPS?.

Register with the Kentucky Department of Revenue to get a Kentucky employer withholding tax account number.

The Kentucky Department of Revenue requires employers to withhold Kentucky income tax for resident and nonresident employees unless an exemption applies.

Employers must electronically file and pay Kentucky income tax withheld. You can register and file through MyTaxes.

Register with the Kentucky Office of Unemployment Insurance to get a Kentucky unemployment tax account number.

You can open a Kentucky unemployment tax account by applying online through Kentucky’s Self-Service Employer Website.

SUTA stands for State Unemployment Tax Act. Kentucky assigns employers a state unemployment tax rate.

For 2026, Kentucky’s new employer SUTA tax rate is 2.7%. New construction employers use 9.0%.

Kentucky issues a Notice of Contribution Rate each year. The notice includes your assigned rate and the information used to calculate it. Kentucky normally issues these notices in mid-December.

To learn more, read What Is SUTA Tax?.

You may need to register with local tax agencies where you do business.

Start by contacting the city or county government where your principal Kentucky business location is located. Also check with each city or county where you transact business or have a business presence.

Kentucky employers with at least one employee subject to Kentucky’s Workers’ Compensation Act must secure workers’ compensation coverage.

You can get workers’ compensation insurance through a private insurance provider. Kentucky also allows employers to apply to self-insure if authorized by the Commissioner.

Learn more about Kentucky workers’ compensation employer responsibilities.

Patriot’s online payroll offers free pay-as-you-go workers’ comp integration with our partner, ERGO NEXT Insurance. You can get a free quote with ERGO NEXT.

Complete Form I-9 to verify the employee’s identity and authorization to work in the United States.

You must keep each employee’s completed Form I-9 for as long as the employee works for you. For more information, read What Should Be in an Employee File?.

To learn more about Form I-9, read Form I-9 in a Nutshell.

Have each new employee complete Form W-4, Employee’s Withholding Certificate. Use Form W-4 to determine federal income tax withholding.

To learn more, read What Is a W-4 Form, and What Is it Used for?.
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Have each new Kentucky employee complete Form K-4 for Kentucky payroll withholding exemptions.

Report each new hire and rehire to the Kentucky New Hire Reporting Center within 20 days of the hire or rehire date.

You can report Kentucky new hires online.

To learn more, read What Is New Hire Reporting?.

Kentucky employers must follow the federal minimum wage rate of $7.25 per hour.

You must display the required minimum wage poster where employees can read it.

You must display required federal, state, county, and city labor law posters.

You can get annual posters and labor law updates through Patriot’s labor law poster store, powered by PosterElite.

After you collect your employer account information and employee forms, you can set up payroll for your Kentucky business.

Employers must keep employee payroll records for at least three years.

To learn more, read What Employers Should Know About Employee Payroll Records.