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Latest Compliance News

Smiths Grove and Carter County, Kentucky: New income tax

02/06/20

Author: ADP Admin/Monday, February 3, 2020/Categories: Compliance Corner

As of Jan. 1, 2020, updated Occupational License Fees (OLF) are in effect for Smiths Grove and Carter County, Kentucky. While our records indicate that you may have employees who live or work in these Kentucky jurisdictions, we’re unable to determine if they’re liable for the withholding of this tax. So employees must be evaluated on an individual basis. Read the article to determine what payroll coding adjustments you need to make if you have employees who live or work in these jurisdictions. 

As of Jan. 1, 2020, the following Occupational License Fees (OLF) are in effect: 

ADP local code              Jurisdiction                                                        Tax rate

--------------                     ------------                                                                -------

1774                              City of Smiths Grove, Kentucky                            1.00%

1776                              Carter County, Kentucky                                       1.00% 

Qualifying employees that work in the City of Smiths Grove or Carter County should be assigned new file numbers via Same Control Employee Transfer (SCET), Terminate/New Hire or have a permanent movement record created via the Multi-Jurisdiction feature with the appropriate coding for Smiths Grove or Carter County. Any pays[WJ(1]  between Jan. 1, 2020 and the present should be moved to the new file number. 

Additionally, employees working in Carter County, including cities of Grayson and/or Olive Hill must remain coded to that city local, but also must now be coded to Carter County.

Due to the timing of this notification, payrolls with a date of Jan. 1, 2020 and beyond have already processed, and under-withholding may have occurred. If employees have been under-withheld, employers should recoup the monies and remit with the following deposit. 

If you have any questions regarding this tax bulletin or any other subject, contact your dedicated Service Team.