Frequently Asked Questions About Withholding

In recognition of the changes in business operations of many employers caused by the Covid-19 pandemic, the Kansas Department of Revenue will waive any applicable penalties for employers and employees associated with the under-withholding and underpayment of individual estimated tax for all employees required to work remotely due to the pandemic. The waiver provided herein shall be effective for the period of time in calendar year 2020 that Governor Laura Kelly’s Declaration of Disaster Emergency Decree remained in effect.

Yes. If you have an employee performing services entirely in Kansas, Kansas withholding tax is due on the total earnings.

When you employ or pay a Kansas resident for services performed outside Kansas (either full time or part time), you must withhold from that employee’s total wages the amount of withholding tax due Kansas, less the amount of withholding tax required by the other state(s).

Yes. If you have an employee performing services in Kansas, those wages are subject to Kansas withholding. If the nonresident works full time in Kansas, the employer must withhold Kansas income tax from the employee’s total wages as if the employee were a Kansas resident.

The computation of Kansas withholding tax for a nonresident employee who performs services for an employer both inside and outside of Kansas is a two-step process. First, the employer computes the Kansas withholding tax amount on the total wages paid during the period. Second, the resulting amount of Kansas withholding is then multiplied by a nonresident percentage factor. The nonresident percentage is obtained by dividing the employee’s services performed in Kansas by the total services performed. Additional information regarding the calculation of withholding tax for nonresidents, can be found in the Kansas Withholding Tax Guide (KW-100) here: https://www.ksrevenue.org/pdf/kw100.pdf

Yes. When you employ or pay a Kansas resident for services performed outside Kansas (either full time or part time), withhold from that employee’s total wages the amount of withholding tax due Kansas, less the amount of withholding tax required by the other state(s).

No. If a nonresident employee performs all services outside of Kansas, the wages paid to that employee are not subject to Kansas withholding.

Yes. If you have an employee performing services entirely in Kansas, those wages are subject to Kansas withholding, regardless of where you as the employer are located.

When you employ or pay a Kansas resident for services performed outside Kansas (either full time or part time), you must withhold from that employee’s total wages the amount of withholding tax due Kansas, less the amount of withholding tax required by the other state(s).

Yes. If you have an employee performing services in Kansas, those wages are subject to Kansas withholding, regardless of where you as the employer are located. If the nonresident works full time in Kansas, the employer must withhold Kansas income tax from the employee’s total wages as if the employee were a Kansas resident.

The computation of Kansas withholding tax for a nonresident employee who performs services for an employer both inside and outside of Kansas is a two-step process. First, the employer computes the Kansas withholding tax amount on the total wages paid during the period. Second, the resulting amount of Kansas withholding is then multiplied by a nonresident percentage factor. The nonresident percentage is obtained by dividing the employee’s services performed in Kansas by the total services performed. Additional information regarding the calculation of withholding tax for nonresidents, can be found in the Kansas Withholding Tax Guide (KW-100) here: https://www.ksrevenue.org/pdf/kw100.pdf

Yes. When you employ or pay a Kansas resident for services performed outside Kansas (either full time or part time), withhold from that employee’s total wages the amount of withholding tax due Kansas, less the amount of withholding tax required by the other state(s).

No. If a nonresident employee performs all services outside of Kansas, the wages paid to that employee are not subject to Kansas withholding.

Yes, an employer is required to withhold Kansas tax from all wages paid to an employee for services performed in Kansas for the employer. In a situation where the employee has performed services in Kansas and multiple other states and is a resident of Kansas, the employer shall withhold from that employee’s total wages the amount of withholding tax due Kansas, less the amount of withholding tax required by the other state(s).

In a situation where the employee has performed services in Kansas and multiple other states and is not a resident of Kansas, the employer computes the Kansas withholding tax amount on the total wages paid during the period. The resulting amount of Kansas withholding is then multiplied by a nonresident percentage factor. The nonresident percentage is obtained by dividing the employee’s services performed in Kansas by the total services performed. Additional information regarding the calculation of withholding tax for nonresidents, can be found in the Kansas Withholding Tax Guide (KW-100) here: https://www.ksrevenue.org/pdf/kw100.pdf

Yes. Any time an employee is performing services for an employer in Kansas, those wages are subject to Kansas withholding. This applies in the case of an employee “remotely working” or “teleworking” in Kansas for an employer located outside the state of Kansas.

Kansas income tax is imposed on wages paid for services performed in the state of Kansas. Services performed outside of Kansas are not subject to Kansas income tax, regardless of where the employer paying for services is located.

In order to determine the proper amount of tax to be withheld from an employee’s wages, it is necessary to determine where the employee is performing services for the employer. This determination is simple in a situation where the employee performs all services for which they are being paid at the employer’s place of business. It can be much more difficult in a situation where an employee is working remotely.

When an employee is working remotely the employer may not know, with certainty, where the employee is located when they perform services for the employer. As a result, it is important for the employer and the employee to work together to make sure there is a proper allocation of the employees time spent performing services in a particular location (or locations). This allocation can then be used as a basis for calculating withholding tax, and for completing the employee’s W-2 at the end of the year.

The Kansas Department of Revenue has revised form K-4C to accommodate for this allocation. Kansas Employee Certificate for Allocation of Kansas Withholding (Form K-4C), enables an employee to estimate the percentage of services performed in Kansas. This form must be filed with the employee’s employer. Any substantial changes in the percentage of services performed in Kansas must be made within 10 days with the employer by completing a new form K-4C. This certificate should only be completed when the employee wishes to take on the responsibility of determining the amount of Kansas withholding to be withheld. The percentage determined should approximate the employee’s annual Kansas tax liability on a calendar year basis based on the services performed in Kansas.

Resident of Kansas Employed in Another State

A Kansas employer must withhold Kansas tax if its Kansas resident employee performs services in a state with an income tax rate that is lower than Kansas’s. The employer will withhold and remit to Kansas the difference between the states’ withholding requirements, unless the employee has completed Form K-4C, Kansas Employee Certificate for Allocation of Kansas Withholding. This form relieves the employer of the responsibility for filing and submitting the difference to Kansas and places the responsibility on the employee. The K-4C is not a required form; if the employee chooses not to complete the form, the employer is responsible for reporting the appropriate amount of withholding to Kansas. If only a portion of an employee’s wages is subject to Kansas withholding tax, then the amount of Kansas tax required to be withheld is calculated using a percentage of the amount listed in the withholding tables. The calculation begins by determining the amount that would be withheld if all the wages were subject to Kansas withholding. This amount is then multiplied by a percentage that is determined by dividing the wages subject to Kansas withholding tax by the total federal wages.

Nonresident of Kansas Subject to Kansas Withholding

If a nonresident employee performs all services within Kansas, tax shall be withheld from all wages paid to him or her as in the case of a resident. If services are performed partly within and partly without the state, only wages paid for services performed within Kansas are subject to Kansas income tax withholding, provided the employee files with the employer a Kansas Employee Certificate for Allocation of Kansas Withholding (Form K-4C). The employee may determine the portion of wages allocable to Kansas on the basis of the preceding year’s experience. If only a portion of an employee’s wages is subject to Kansas income tax withholding, then the amount of Kansas tax required to be withheld is calculated using a percentage of the amount listed in the withholding tables. The calculation begins by determining the amount that would be withheld if all the wages were subject to Kansas withholding. This amount is then multiplied by a percentage that is determined by dividing the wages subject to Kansas withholding by the total federal wages.

Refunds are only issued on closed accounts. However, a credit memo can be obtained by amending your return. To amend a period, please complete a KW-5 for that period with the corrected figures. Be sure to place an X in the box marked Amended Return.

If your assigned account number does not fit in the appropriate box on the W-2 form you can use your Federal Employer Identification Number.

Yes, if you have no withholding to report, you must file a zero return.

If you submit a request your account will be reviewed to determine if the filing frequency can be changed based on the amount of tax remitted in a 12 month period.

The Kansas Department of Revenue annually reviews the reporting history of each Kansas business tax customer to ensure their filing frequency is within statutory guidelines. This filing frequency determination applies to both sales tax (K.S.A. 79-3607). A notice of proposed filing frequency changes is mailed to the affected customers prior to Jan. 1st.

Filing frequency is based on the amount of tax liability incurred during the preceeding calendar year. If there is no previous filing history the filing frequency is based on estimated filing. The department is authorized to modify the filing schedule for any business when the current schedule is inaccurate.

Sales Tax:

Annual Tax Liability Filing Frequency Return Due Date
$0 - $400 Annual On or before January 25th ofthe following year.
$400.01—$4,000 Quarterly On or before the 25th of themonth following the end of the calendar quarter— April 25,July 25, October 25, January 25.
$4,000.01—$40,000 Monthly (Seasonal) On or before the 25th of the following month (e.g., a March return is due by April 25).
$40,000.01 and over Pre-paid Monthly First 15 days liability is due on or before the 25th of that month.

Withholding Tax:

Annual Amount Withheld Filing Frequency Reporting Period Return Due Date
$0 - $200 Annual Jan - Dec January 25 of the following year
$200.01 - $1200 Quarterly Three months 25th of the month following the close of the quarter
$1200.01 - $8,000 Monthly Each month 15th day of the month following the reporting period
$8,000.01 - $100,000 Semi-Monthly 1st to the 15th 25 of the same month
$8,000.01 - $100,000 Semi-Monthly 16th to the last day of each month 10th of the next month
$100,000.01 and above Quad-Monthly Within three banking days of the 7th, 15th, 21st and the last day of the month Electronic funds transfer payment required

Changes take effect Jan. 1 of the upcoming year.

For tax assistance call 1-785 368-8222.