Unemployment rate, taxable wage base, minimum wage and withholding
Federal payroll rules are identical everywhere; the money differs by state. What Kentucky assigns a new Campbellsville employer, what wage base it applies, and what its minimum wage requires are below with state sources.
Two free marketplace paths: one form brings back multiple vetted payroll providers who know they are competing for the account.
Kentucky assigns new employers a state unemployment tax rate of 2.70% (base rate on wages up to a taxable base of $12,000 per employee per year, which is the state-set portion of every Campbellsville payroll and moves with claims experience over time.
Kentucky sets its minimum wage at $7.25, the floor every Campbellsville hourly rate has to clear before overtime, tip credits and local ordinances are applied on top.
Employers in Campbellsville's county pay about $40,021 a year per employee on average across 9,968 covered jobs (Census County Business Patterns 2023) - the wage base every unemployment rate and withholding schedule is applied to locally.
Federal payroll rules are identical in every state; the expensive differences are local. Kentucky assigns a state unemployment tax rate and a taxable wage base, sets a minimum wage that may sit above the federal floor, and runs its own withholding registration and deposit schedule. Any Campbellsville payroll quote that does not account for those is a quote for a different business.
Two Campbellsville businesses with identical payrolls can owe materially different amounts because of Kentucky's unemployment tax alone: new employers are assigned a starting rate, experience moves it within a statutory band, and the taxable wage base decides how much of each salary the rate applies to. Both figures are published by the state and shown below with sources.
Put a state payroll setup review out to competing quotes before you compare prices
Two free marketplace paths: one form brings back multiple vetted payroll providers who know they are competing for the account. Competing quotes are the only reliable way to see what your headcount actually prices at.
External links go to the marketplaces' own sites and forms. This site may earn a referral fee at no cost to you - it never changes the data above, and no individual payroll provider pays to appear in our research.
What Kentucky adds to every payroll
| Question | Kentucky answer |
|---|---|
| State unemployment tax - new employer rate | 2.70% (range 0.30% - 9.00%) |
| Taxable wage base per employee | $12,000 - STALE-FIGURE WARNING: an $11,400 Kentucky wage base is still circulating in secondary write-ups - that is the earlier figure; the US DOL value effective January 2026 is $12,000 |
| State minimum wage | $7.25 - State law sets the greater of the state or federal minimum |
| State income tax withholding | flat 3.5% for tax year 2026 |
| Local payroll or income taxes | Yes — Kentucky has one of the densest local payroll tax landscapes: roughly 200 cities, counties and school districts levy an occupational license fee (a payroll tax on wages earned in the jurisdiction), withheld by the employer |
Kentucky does not give every new employer the same entry rate - construction and mining employers are assigned substantially higher rates than the 2.70% general new-employer rate, so the industry classification on the registration drives the first three years of cost.
This page is independent research, not legal, tax or accounting advice. Federal deposit rules and state wage, unemployment and final-paycheck laws change - verify current requirements with the IRS and your state labor and revenue agencies, or with a licensed CPA or attorney, before acting.
Why two identical Campbellsville payrolls owe different amounts
Unemployment tax is charged as a rate against a capped amount of each employee's wages, and both halves of that formula are state decisions. A new Campbellsville employer is assigned a starting rate; once there is claims history the rate moves within the state's statutory band. The wage base decides how much of a salary the rate touches - which is why a state with a high base and a low rate can cost more than the reverse. Neither number is negotiable, but both are worth knowing before comparing payroll quotes that quietly assume one state.
What this means in Campbellsville
Withheld income tax and the employee share of FICA are trust funds - money that was never the company's. That is why the Trust Fund Recovery Penalty can reach an owner or officer personally, and why 'the company can't pay' is not an exit from this particular bill.
This page is independent research, not legal, tax or accounting advice. Federal deposit rules and state wage, unemployment and final-paycheck laws change - verify current requirements with the IRS and your state labor and revenue agencies, or with a licensed CPA or attorney, before acting.
Put a state payroll setup review out to competing quotes before you compare prices
Two free marketplace paths: one form brings back multiple vetted payroll providers who know they are competing for the account. Competing quotes are the only reliable way to see what your headcount actually prices at.
External links go to the marketplaces' own sites and forms. This site may earn a referral fee at no cost to you - it never changes the data above, and no individual payroll provider pays to appear in our research.
Common questions
How much does a payroll service cost for a small business?
In 2026 published pricing, payroll services charge a monthly base fee of roughly $20-$150 dollars plus $4-$15 dollars per employee per month. A ten-employee business commonly lands between $70 and $250 dollars a month before add-ons. Full outsourced processing is often quoted per person instead, at roughly $30-$100 dollars per employee per month. These are directional market ranges, not quotes.
How much does payroll cost per employee per month?
Per-employee fees cluster at $4-$15 dollars per month on top of the base fee for standard payroll software and services. Fully outsourced processing and PEO-style arrangements are quoted differently - commonly $30-$100 dollars per person per month or a percentage of gross payroll - and bundle benefits administration and compliance work that standard payroll does not include.
What do I need to give a payroll company to get a quote?
Employee count split into salaried, hourly and contractors; every state where someone physically works; pay frequency; expected off-cycle runs; and whether you need benefits, time tracking, garnishments or workers' comp integration. Providing all of it up front is what makes competing quotes genuinely comparable - and it is exactly what a marketplace form collects once and sends to several providers.
What is state unemployment tax and why does my rate change?
Every employer pays state unemployment insurance tax on each employee's wages up to a state taxable wage base. New employers are assigned a starting rate; after enough history, the rate moves within a statutory band based on claims experience. Two identical payrolls can owe very different amounts because both the rate and the wage base are set state by state - the Kentucky figures are published on this site's state page.
If my payroll provider files late, who pays the IRS penalty?
The employer is responsible to the IRS regardless. The IRS states that outsourcing payroll duties does not relieve an employer of the responsibility to deposit and report employment taxes - the notice follows your EIN. Many providers offer a contractual guarantee to cover penalties they cause, but that is a private contract, not a change in tax liability. Get the guarantee, its limits and its claim process in writing.
Put a state payroll setup review out to competing quotes before you compare prices
Two free marketplace paths: one form brings back multiple vetted payroll providers who know they are competing for the account. Competing quotes are the only reliable way to see what your headcount actually prices at.
External links go to the marketplaces' own sites and forms. This site may earn a referral fee at no cost to you - it never changes the data above, and no individual payroll provider pays to appear in our research.
Prices in nearby cities
Campton · Caneyville · Carlisle · Carrollton · Carrsville · Catlettsburg · Cave City · Centertown · Central City · Clarkson · Clay · Clay City