Easily manage employment in Kansas

Payroll management in Kansas

Kansas has a diverse economy driven by industries such as agriculture, manufacturing, aviation, and energy. With relatively low labor costs and a business-friendly regulatory environment, Kansas is an attractive state for employers. However, businesses must comply with payroll regulations, including minimum wage laws, unemployment insurance taxes, and workers’ compensation requirements. Understanding these regulations ensures compliance and smooth payroll operations.

Payroll breakdown in Kansas

Employers in Kansas must adhere to both federal and state payroll regulations regarding wages, taxes, and benefits. Below is an overview of key payroll components:

Minimum wage and overtime

• Minimum wage: Kansas’ minimum wage is $7.25 per hour, aligning with the federal minimum wage.
• Overtime rules:
• Kansas follows federal overtime laws, requiring employers to pay 1.5 times an employee’s regular rate for hours worked beyond 40 hours in a workweek.
• Kansas does not mandate daily overtime.

State income tax

• Kansas has a progressive income tax system, with rates ranging from 3.1% to 5.7% depending on income levels.
• Employers must withhold state income tax and remit it to the Kansas Department of Revenue.

Unemployment insurance (UI) tax

• Employers must contribute to Kansas’ Unemployment Insurance (UI) program, managed by the Kansas Department of Labor.
• The wage base for UI tax in Kansas is $14,000.
• UI tax rates vary based on an employer’s experience rating and range from 0.2% to 7.6%.

Workers’ compensation

• Kansas law requires most employers to carry workers’ compensation insurance to cover medical expenses and lost wages for employees injured on the job.

Payroll tax filing and payment deadlines

• Employers must register for a Kansas Withholding Tax Account Number with the Kansas Department of Revenue.
• State withholding tax returns must be filed monthly, quarterly, or annually, depending on employer classification.
• UI tax reports must be submitted quarterly to the Kansas Department of Labor.
• Payroll tax payments can be made electronically through the Kansas Department of Revenue’s online system.

Quick facts: Important considerations for employers

• State minimum wage compliance: Kansas follows the federal minimum wage, and employers must comply with federal regulations.
• Final paycheck rules:
• If an employee is terminated, employers must provide the final paycheck by the next scheduled payday.
• If an employee resigns, the final paycheck must be provided by the next scheduled payday.
• New hire reporting: Employers must report new hires to the Kansas New Hire Directory within 20 days.
• Paid sick leave: Kansas does not mandate paid sick leave, but employers may voluntarily provide this benefit.
• Payroll recordkeeping: Employers must maintain payroll records for at least three years to comply with state and federal laws.
• Right-to-work state: Kansas is a right-to-work state, meaning employees cannot be required to join or pay dues to a labor union as a condition of employment.

Run payroll in Kansas with Remote

Managing payroll in Kansas requires careful attention to state-specific regulations, including minimum wage compliance, UI tax requirements, and workers’ compensation laws. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

To see just how easy global payroll can be, book a demo today.