There is reciprocal agreement between OH & KY.
Employee live in KY and work in OH. The employee submitted Ohio withholding exemption certificate.
Do we withhold state tax for OH or KY?
Since there is a reciprocal agreement between the 2 states, the state tax would be taken for the lived in state. In this case KY. Unemployment would still be where work is performed which would be OH in this case.
Can employee elect to have Ohio tax withholding by completing the Ohio withholding exemption certificate?
See if this help.