Payroll tax in Kansas: What employers need to know [2024]

Navigating payroll taxes is inevitable when running a business. Beyond fulfilling federal FICA tax responsibilities covering Medicare and Social Security, business owners have state-specific payroll taxes to grapple with. As the tax regulation landscape varies widely across states, you need a solid understanding of the laws everywhere your employees live. Otherwise, you might face some hefty penalties and charges for late or incorrect filings.

Kansas has a progressive income tax system, meaning employees’ tax contributions increase as they earn more. Consequently, expanding your workforce translates to a higher income tax withholding responsibility. 

Whether you're running a small business or a large corporation in the Sunflower state, consider this your compass to understanding the complexities of Kansas payroll taxes. Let’s dive in. 

The 2 Kansas payroll taxes

Kansas has two types of payroll taxes. The Kansas Department of Revenue (KDOR) administers income taxes, and the Kansas Department of Labor (KDOL) handles unemployment insurance tax. According to the Internal Revenue Code, every Kansas employer responsible for federal income tax withholdings must also withhold state income tax. 

Most employers’ payroll tax obligations begin upon paying one or more workers over $1,500 in a calendar quarter. You must register with the KDOR within 15 days of hiring your first employee. 

Unemployment insurance tax

Kansas employers are required to pay unemployment insurance taxes under the State Unemployment Tax Act (SUTA). These taxes support the state's unemployment benefits program, providing financial assistance to eligible workers who are unemployed for reasons outside their control.

Every employer that begins business operations in Kansas must file form K-CNS 010, "Status Report," within 15 days of the first employee’s start date. The rate for new employers who aren’t in construction is 2.7%, and the rate for employers in the construction industry is 6%.

Personal income tax

Kansas residents are subject to personal income tax (PIT), which employers must withhold from their wages and remit to the state.

There are two methods to determine the amount of Kansas income tax you must withhold from employees’ wages. Both methods involve tables for single and married taxpayers, depending on how often they get paid (weekly, monthly, etc.): 

1. The wage bracket tables method: This is the easiest of the two methods. You need to find where your employees’ gross pay and number of withholding allowances meet on the wage bracket table that matches your payroll frequency and the person's filing status. 
2. The percentage formula method: This method involves a mathematical formula based on Kansas’s personal income tax rates. You’ll need to use it if you have highly paid employees or use a computerized payroll system. The percentage rate tables are based on the employee’s net wage (or take-home pay). To calculate the net amount, first calculate your employee’s withholding allowance amount and deduct it from the gross wage for the pay period, then use the percentage rate tables provided by the KDOR.

Navigating payroll tax laws in Kansas can be daunting, but fortunately, there’s a simple solution: Rippling’s payroll software makes compliance easy by automatically calculating your taxes and submitting all your forms and payments for you. It monitors the tax laws at the federal, Kansas state, and local levels to ensure 100% compliance. Plus, Rippling’s PEO can register and maintain your state tax accounts for you, automating the entire payroll tax process.

Payroll tax due dates in Kansas

Employers in Kansas are subject to various due dates for payroll taxes, depending on the size of their payroll and the frequency of their payroll cycles. The larger your payroll, the more often you'll need to report and pay taxes. 

You can find the due dates for remitting withheld PIT in the table below. If the due date happens to be on a weekend or holiday, use the next regular business day.

Late payments will cost you a 15% penalty plus interest. If you fail to submit a late return within 20 days following written notice, you can face an extra 50% penalty. 

For unemployment insurance tax, all quarterly tax reports and payments must be submitted before the end of the month following the end of each quarter:

• First quarter (January-March): Due April 30
• Second quarter (April-June): Due July 31
• Third quarter (July-September): Due October 31
• Fourth quarter (October-December): Due January 31

How to submit payroll taxes in Kansas

In order to withhold and submit payroll taxes, you first need to take a few steps:

• Once you start a new business, apply for an employer identification number (EIN) from the IRS.
• Apply for a Kansas withholding tax account number. You can do so online through the KDOR website, and you’ll find detailed instructions in the KDOR’s Pub. KS-1216, Business Tax Application and Instructions. You can also apply in person or by mail or fax. 
• Have your employees complete their withholding tax forms as soon as they’re hired. They’ll need to complete a Form W-4 for federal income tax and a signed K-4 Kansas Withholding Allowance Certificate. 

Then, you have a few options for submitting payroll taxes in Kansas. 

File and pay electronically 

Most employers opt for online personal income tax filing and pay through the KDOR Customer Service Center (KCSC) online portal. You simply create a user login ID, select a password, and then attach your business tax accounts. With this online service, you can complete a variety of tasks, including:

• Making payments 
• Registering to collect, file, and pay taxes (or other fees)
• Updating your contact information and mailing address
• Filing tax returns 

The Kansas Department of Labor encourages employers to file unemployment insurance tax electronically on KansasEmployer.gov. First, complete the online registration form, and then you can enter wage data directly into a secure online form.

Pay by credit card 

Employers can pay their payroll taxes online through third-party vendors: ACI, Inc. (ACI) or Value Payment Systems (VPS). Each vendor accepts specific credit cards and charges a convenience fee based on the amount being paid. 

Wire transfer 

The Department also accepts wire transfers from both domestic and foreign banking institutions in American currency. 

Rippling’s full-service payroll software

Looking for a hassle-free payment solution? Rippling's payroll software is so efficient it practically runs itself. Let Rippling take care of compliance tasks and file your payroll taxes with the IRS, Kansas Department of Revenue, and any other applicable agencies.

FAQs about Kansas payroll taxes

Are there local tax laws in Kansas?

Yes, there are Kansas jurisdictions that collect local income taxes. For example, some localities in Kansas have a local “intangible tax” on interest and dividend income (including income from savings accounts, stocks, and bonds).

Can your tax returns be audited in Kansas?

Yes, the Kansas Department of Revenue conducts audits to verify the accuracy of tax returns. All Kansas employers must keep current, complete, and accurate withholding records for at least three years after the state withholding tax is due or paid (whichever is later).

Are nonprofit organizations subject to payroll taxes in Kansas?

Nonprofit organizations in Kansas might be exempt from certain taxes, but the employer must still withhold income tax from employees. The Department of Revenue has a list of entities and organizations that are authorized to receive a Tax-Exempt Entity Exemption Certificate. 

Do Kansas and Missouri have tax reciprocity?

No, there’s no tax reciprocity between these two states. However, they do have provisions to honor credits paid to other states, which helps prevent double taxation.

Are Kansas employers required to purchase workers’ compensation insurance?

Yes. Kansas law requires most businesses with employees to carry workers' compensation insurance. But there are some exceptions, like for employers with a gross payroll of $20,000 or less per year, sole proprietors, and LLC members.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.