Kansas Withholding laws & HR compliance analysis

Kansas Withholding: What you need to know

Every employer that is required to withhold wages under the federal Internal Revenue Code (IRC) must also withhold and deduct Kansas income tax from the wages of employees who are residents of Kansas and are performing services inside or outside of Kansas, or of nonresidents of Kansas who are performing services in Kansas. Withholding may be based on wage bracket withholding tables, the percentage method tables provided by the Kansas Department of Revenue (KDOR), or any other method that results in substantially the same amount of withholding.
The KDOR does not use federal Form W-4 for purposes of calculating Kansas wage withholding and instead uses Kansas Form K-4. Employers must provide a Form K-4 to all employees who are responsible for completing and submitting it to their employer. If this form is not completed by an employee, the employer must withhold wages at the single rate with no allowances. Employers are required to maintain a copy of each employee's Kansas Form K-4.
Supplemental wages, such as bonuses and commissions, are to be withheld on at a rate of 5 percent if paid separately from regular wages.
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Withholding applies to:
• Wages of residents, regardless of where earned. An employer paying a Kansas resident for work in another state must reduce Kansas withholding by the amount that is withheld for the other state.
• Wages of nonresidents for income earned in Kansas. Nonresidents working in both Kansas and other states must file a Form K4-C, Employees Certificate of Nonresident Allocation of Withholding Tax, or a Form K-4B, Affidavit to Support Exclusion from Kansas Withholding. If neither form is filed, the employer must keep records to establish the portion of ...

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