Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
141.347,
141.400,
141.401,
141.402,
141.403,
141.407,
141.415,
154.22-010,
154.22-070,
154.23-010,
154.23-055,
154.24-010,
154.24-110,
154.25-010,
154.25-040,
154.26-010,
154.26-100,
154.28-010,
154.28-110,
154.32-010,
154.32-090
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
131.130(1) authorizes the
Department of Revenue to promulgate administrative regulations to administer
and enforce Kentucky's tax laws.
KRS
141.347(9),
141.400(9),
141.401(9),
141.402(8),
141.403(9),
141.407(9),
and
141.415(9)
authorize the department to promulgate administrative regulations to require
the filing of forms necessary to comply with the Kentucky economic development
acts contained in KRS 154.22, 154.23, 154.24, 154.25, 154.26, 154.28, and
154.32,and the allowable income tax credit that a company may retain under
those statutes. This administrative regulation establishes the filing
requirements for the wage assessments authorized by the subchap-ters of KRS
Chapter 154 referenced above.
Section
1. Definitions.
(1) "Annual
Report" means Form 42A900, Wage Assessment Annual Report for Economic
Development Credits, as prescribed by the department at
https://revenue.ky.gov.
(2) "Department" means the Kentucky
Department of Revenue.
(3) "Gross
wages" means any payment an employer gives an employee for services performed
before any deductions permitted by federal or Kentucky law to yield "Taxable
wages."
(4) "KBI" means the
Kentucky Business Investment Program Act, which is codified as
KRS
154.32-010 to
154.32-100
and referenced in
KRS
141.415.
(5) "KEOZ" means the Kentucky Economic
Opportunity Zone Act, which is codified as
KRS
154.23-005 to
154.23-080
and referenced in
KRS
141.401.
(6) "KIDA" means the Kentucky Industrial
Development Act, which is codified as
KRS
154.28-010 to
154.28-140
and referenced in
KRS
141.400.
(7) "KIRA" means the Kentucky Industrial
Revitalization Act, which is codified as
KRS
154.26-010 to
154.26-125
and referenced in
KRS
141.403.
(8) "KJDA" means the Kentucky Jobs
Development Act, which is codified as
KRS
154.24-010 to
154.24-160 and
referenced in
KRS
141.407.
(9) "KJRA" means the Kentucky Jobs Retention
Act, which is codified as
KRS
154.25-010 to
154.25-050
and referenced in
KRS
141.402.
(10) "KREDA" means the Kentucky Rural
Economic Development Act, which is codified as
KRS
154.22-010 to
154.22-102
and referenced in
KRS
141.347.
(11) "Taxable wages" means any payment an
employer gives an employee for services performed as reported in box 1 of
Internal Revenue Service Form W-2, Wage and Tax Statement.
Section 2. Annual Report for Assessment.
(1) An approved company with a Kentucky
economic development act project authorized under the statutes listed in
Section 1 of this administrative regulation shall file an annual wage
assessment report with the department.
(2) The annual report shall be faxed or
mailed on or before March 15 of each calendar year to the department, to report
wage assessment credits claimed for the preceding calendar year.
(3) Information required on the annual report
shall include:
(a) Company name;
(b) Project number assigned by the Cabinet
for Economic Development;
(c)
Kentucky withholding account number;
(d) Activation date of project;
(e) Total annual gross or taxable wages for
all employees as described below:
1. Gross
wages shall be used for the KEOZ, KIDA, KIRA, KJRA and KREDA credits;
and
2. Taxable wages shall be used
for the KBI and KJDA credits;
(f) Total annual wage assessment credit
claimed;
(g) Total annual local
wage assessment credit claimed; and
(h) Total annual Kentucky tax withheld and
reported for all employees.
(4) Information required to be submitted as
an attachment to the annual report in a spreadsheet format if not included on
Form 42A900 shall include:
(a) Each eligible
employee's name;
(b) Each eligible
employee's Social Security number or requested part thereof;
(c) Each eligible employee's state of
residence;
(d) Each eligible
employee's hire date;
(e) Annual
gross or taxable wages per eligible employee as described below:
1. Gross wages shall be used for the KEOZ,
KIDA, KIRA, KJRA and KREDA credits; and
2. Taxable wages shall be used for the KBI
and KJDA credits;
(f)
Annual Kentucky income tax withheld per eligible employee; and
(g) Annual Kentucky wage assessment credit
claimed per eligible employee.
STATUTORY AUTHORITY:
KRS
131.130(1),
141.347(9),
141.400(9),
141.401(9),
141.402(8),
141.403(9),
141.407(9),
141.415(9)
