Kentucky Form 740NP-WH-ES is the official estimated tax payment voucher used by pass-through entities operating in the Commonwealth of Kentucky. Specifically, this form is required for entities such as partnerships, S-corporations, and LLCs that must withhold Kentucky income tax on the “distributive share” of income allocated to nonresident individual partners, members, or shareholders. The state mandates that these entities make estimated tax payments if the expected tax liability for any nonresident owner is reasonably projected to exceed $500 for the year. The current tax rate for these estimated payments is set at 4%. By filing this voucher and remitting payments quarterly, businesses ensure they meet their tax obligations under Kentucky Revised Statutes (KRS) 141.206 and 141.305, thereby avoiding interest and underpayment penalties at year-end. Essentially, it is the prepayment mechanism for the taxes that will be reconciled later on the annual withholding return.
Who Needs To File?
Not every business needs to file this specific form. You are required to submit Form 740NP-WH-ES if your business meets the following criteria:
- You are a pass-through entity (PTE) doing business in Kentucky.
- You have nonresident individual partners, members, or shareholders.
- The estimated tax liability for any of these nonresident owners is expected to be more than $500 for the tax year.
- Exception: Publicly traded partnerships are generally exempt from this specific withholding requirement under KRS 141.0401.
When And How To Pay
Electronic Payment Requirement
For tax years starting on or after October 1, 2021, Kentucky generally requires corporations and pass-through entities to file and pay electronically. You can handle this securely by visiting www.revenue.ky.gov. This is the fastest and most preferred method.
Paper Filing Instructions
If you are unable to pay electronically and must use the paper voucher, follow these specific steps to ensure your payment is processed correctly:
- Cut the Voucher: The form is located at the bottom of the page. Cut along the dotted line to separate the voucher from the instructions.
- Prepare the Check:
- Make your check or money order payable to: Kentucky State Treasurer.
- Do not send cash.
- If your entity’s name and address are not pre-printed on the check, handwrite them clearly.
- Write your FEIN (Federal Employer Identification Number) and Kentucky NRWH Account Number on the check itself to ensure it is credited to the right account.
- Remove any check stubs before mailing.
- Mail the Payment: Place the voucher and the check in an envelope (do not staple or paperclip them together) and mail to:
- Kentucky Department of Revenue
- Frankfort, Kentucky 40619-0006
How to Complete Kentucky 740NP-WH-ES Form
The voucher itself is simple but requires precise data entry. Here is how to complete each field:
- Kentucky NRWH Account No: Enter the unique Nonresident Income Tax Withholding Account Number assigned to you by the Department of Revenue. If you do not know this number, call Registration at 502–564–3306 before filing.
- Federal Identification Number (FEIN): Enter your business’s 9-digit federal tax ID number.
- Taxable Year Ending: Enter the month and year your tax year ends in a four-digit format (MMYY). For example, if your tax year ends in December 2024, enter 1224.
- Entity Name: Print the legal name of your business. Important: Do not use any punctuation marks like periods, commas, or parentheses in the name field.
- Address Fields: Fill in the Number, Street, City, State, and ZIP Code where the business receives mail.
- Contact Info: Provide the name and telephone number of the person responsible for this filing (e.g., the owner or tax preparer).
- Total Paid: In the box labeled “Total Paid,” enter the amount of the estimated tax payment you are remitting. Round this amount to the nearest whole dollar (e.g., enter $500.00, not $500.45).