Kentucky public workers’ paychecks to fall

FRANKFORT, Ky. (AP) – Most public employees in Kentucky will see a bit less in their paychecks starting in 2017 when the Internal Revenue Service will begin applying Social Security and Medicare tax to the employees’ contributions to their retirement funds.

According to the Kentucky Finance and Administration Cabinet, The Courier-Journal reports that a typical public employee who makes $40,500 per year will see $154.80 more withheld from his or her pay during 2017. That equates to $6.45 less in each of 24 paychecks. Some other employees with the same $40,500 salary could have as much as $11.62 per paycheck reduced, depending on retirement contributions.

Public school teachers are also affected by the change, but to a much smaller extent because teachers do not pay the Social Security tax but only the Medicaid tax.


Information from: The Courier-Journal,

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Categories: News, State News

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