Kentucky Deductions from Pay laws & HR compliance analysis

Kentucky Deductions from Pay: What you need to know

Under Kentucky law, the only deductions an employer may make from employees' wages are those deductions that are required or permitted by law.
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Required by law. Employers are required to make deductions from employees' wages for federal, state, and local taxes; Social Security withholding (FICA); and court-ordered garnishments.
Permitted by law. Employers may make deductions from employees' wages if the deduction is authorized in writing by the employee and is for one of the following purposes:
• Insurance premiums and hospital or medical payments
• Union dues, when authorized by joint wage agreements or collective bargaining contracts
• Other deductions authorized by joint wage agreements, collective bargaining contracts, or statute, and that are not a salary rebate to the employer (KY Rev. Stat. Sec. 337.060)
• The cost of board, lodging, or other facilities (such as merchandise in company stores) provided to employees, but only where such items are customarily furnished by the employer and the deduction is limited to the employer's reasonable cost
An assignment of wages is an agreement between an employee and a creditor, under which the employee agrees to let the creditor collect part of his or her wages from each paycheck in order to repay a debt. Assignments to repay loans of less than $200 and consumer loans of up to $15,000 are valid (KY Rev. Stat. Sec. 371.110, KY Rev. Stat. Sec. 286.4-570).
Small loans. The small loan assignment (less than $200) must be in writing; signed by the employee; include the names of all the assignees; and state the amount of money advanced, the interest, and the repayment schedule. In addition, an assignment must be accepted in writing by the employer. ...

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Kentucky Deductions from Pay Resources

Type Title
Forms Training Expense Agreement
Policies Payroll Deductions (Standard)
See all Deductions from Pay Resources