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KAPT Employee & Employers Information

Payroll Deduction

What is payroll deduction?

Payroll deduction allows employers a way to give employees a chance to easily contribute to their prepaid tuition account. By automatically deducting contributions from their paycheck and depositing them directly into their KAPT account, employers can give their employees peace of mind regarding their children and grandchildren’s education.

What are the requirements for setting up KAPT payroll deduction?

For employers, there is no quota for the number of employees wishing to participate in payroll deduction. KAPT will accept deductions from companies with only one participating employee. For employees, there is a minimum monthly contribution per KAPT account, based on the payment of the specific KAPT plan they choose. An employee must have an active KAPT account before any payroll deduction can occur.  Please click here for Employer Payroll Deduction Instructions.

Does Kentucky state government offer payroll deduction?

Kentucky state government offers payroll deduction to its employees.  Employees should complete the Kentucky State Government Employee Payroll Deduction Authorization Form, which is available by clicking here, and submit the form by mail to KAPT, KHEAA, PO Box 798, Frankfort, KY 40602-0798 or by fax to (502) 696-7373.  If you are a Kentucky state government payroll officer who has questions about KAPT payroll deduction, please call (502) 696-7441.

If payroll is handled through an outside company, will this pose a problem for KAPT’s payroll deduction?

No. Your company would still need to submit a signed Payroll Deduction Agreement to KAPT, but the way your company handles internal transactions is decided by you.

What if a company is very large and has many divisions in diverse locations? Will each division need to complete a Payroll Deduction Agreement?

No. Only one Payroll Deduction Agreement will be required per company.

Are deductions made with pre-tax dollars?

No. Payroll deduction contributions are made after taxes have been deducted from your employees’ salaries.

If you are interested in providing KAPT payroll deduction as a service to your employees, please read and use the Adobe Acrobat PDF forms below. If you have any questions, please call 1-888-919-KAPT and press option 3.

Payroll Deduction Letter to Employers from KAPT

Employer Payroll Deduction Instructions

Kentucky State Government Payroll Deduction Authorization Form

Employer Payroll Deduction Notice

KAPT/Employer Payroll Deduction Agreement

Private Employer Payroll Deduction Authorization Form

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