image description here

To learn more about KAPT, and to answer any questions you may have, please read KAPT's Program Overview and Enrollment Information.

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.

Can employers make matching contributions to an employee’s account or create a scholarship account for employees or their families?

Absolutely. You are welcome to call KAPT’s office directly for details and guidance.

Are deductions made with pre-tax dollars?

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

Return to Top of Page

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

Employee Matches and Scholarships

While every KAPT contract can only have one designated purchaser and one designated beneficiary, anybody can contribute to a particular contract. That includes the practice of an employer making contributions to an employee’s KAPT contract.

While there may not be a way to guarantee employee retention, KAPT can offer a wonderful incentive for employees to stay loyal to your company. You may choose to match employee contributions to KAPT accounts or open your own KAPT account to provide a full scholarship to children or grandchildren of workers who stay with you over a number of years. Since KAPT benefits can apply to adults’ continuing education, you can even consider creating a scholarship for employees themselves. To learn more, click here.

If you are interested in providing employee matches or scholarships, please feel free to contact the KAPT office at (888) 919-KAPT and press option 3.

If you have any questions as to the tax implications of offering either of these programs, please consult your tax advisor.

Return to Top of Page