Comprehensive Guide to Payroll Taxes in Kansas

Navigating payroll taxes in Kansas requires a thorough understanding of both federal and state tax obligations. This guide provides employers with a structured and detailed overview of the payroll taxes applicable in Kansas, including unemployment insurance, personal income tax, and workers’ compensation.

Overview of Payroll Taxes in Kansas

Employers in Kansas are responsible for federal income tax, FICA taxes (Medicare and Social Security), and state-specific payroll taxes. Kansas imposes no local payroll taxes but has specific requirements for workers' compensation insurance. Non-profit organizations may be exempt from certain taxes but must still withhold income tax from employees.

The Kansas Department of Revenue (KDOR) administers income taxes, while the Department of Labor (KDOL) handles unemployment insurance tax (UI), also known as state unemployment insurance (SUI) tax. The KDOR and KDOL can both audit tax returns for payroll tax compliance.

Paying unemployment insurance

Kansas employers are required to pay unemployment insurance (UI) tax on behalf of their employees. The program provides temporary financial assistance for eligible individuals who become unemployed through no fault of their own.

Employers pay UI tax at a rate between 0.1% to 6% on a taxable wage base of $14,000 in Kansas. New non-construction employers are charged 2.7%, and new construction employers are charged 6%. Payments are due quarterly on April 30, July 31, October 31, and January 31.

The Kansas Department of Labor provides more information on managing unemployment insurance in the state.

Withholding personal income tax from your Kansas employee

Employers are responsible for withholding federal taxes, such as Medicare and Social Security, from their Kansas state employees — but that’s not all. There is another group of state taxes, also known as employer payroll taxes or payroll withholding, to consider. One of these taxes is the personal income tax (PIT).

Personal income tax is applied to the income of Kansas residents. The individual income tax is deducted from the employee’s wages and withheld by the employer, who then pays the state on an annual, quarterly, monthly, semi-monthly, or quad-monthly basis. Employees are charged PIT on their full wage at a rate between 3.1% to 5.7%

For more information on paying the withheld amount, you can consult the Kansas Department of Revenue. 

Submitting payroll taxes in Kansas

Employers can file and remit payroll taxes online through the KDOR Customer Service Center online portal and pay unemployment insurance tax through the KansasEmployer.gov online portal. Payments can also be made through third-party vendors ACI, Inc. (ACI) or Value Payment Systems (VPS), which charge a convenience fee.

Paying your Kansas workers' compensation

On top of paying your Kansas payroll taxes, you must also pay for workers’ compensation, even if you only have one employee based in the state. 

Workers’ compensation is a type of insurance that offers medical benefits and financial assistance to employees who are injured or become ill while performing their job. The insurance also mitigates certain risks for the employer. 

In Kansas, workers’ compensation is typically purchased from a qualified commercial carrier in the state. The Kansas Department of Labor provides more information on finding a qualified commercial carrier. 

Top tip: Ensure you verify that your workers’ compensation insurance complies with the state’s regulations for workers’ compensation.

Simplify US payroll tax compliance with Deel

While this guide serves as an excellent starting point on Kansas payroll taxes and compliance, there are many other responsibilities to navigate. To streamline the process and reduce the administrative burden, many companies turn to Deel. 

Our robust and centralized platform offers a comprehensive solution for managing US and international payroll, including payments, taxes, and worker classification.

Request a demo today to see how we can help you streamline your US payroll processes and ensure compliance with state regulations.