December 9, 2020 Kansas issues FAQs on income tax and income tax withholding that are applicable during the COVID-19 emergency In its frequently asked questions (FAQs) about income tax withholding, the Kansas Department of Revenue stated that in consideration of the impact of the COVID-19 emergency on employer operations, it will waive employer under withholding and individual estimated tax payment penalties for all employees required to work remotely. These penalty waivers apply for the period in 2020 that Governor Laura Kelly's disaster emergency order remained in effect. The following FAQs explain the Department's income tax withholding requirements under various scenarios which reflect no departure from the rules that applied before the COVID-19 emergency. Are the wages I pay to employees in Kansas for "remote working" or "teleworking" subject to Kansas income tax withholding? Yes. Any time an employee is performing services for an employer in Kansas, those wages are subject to Kansas income tax withholding. This applies in the case of an employee "remotely working" or "teleworking" in Kansas for an employer located outside of Kansas. I am an employer located in Kansas and have an employee who is a resident of Kansas working in Kansas. Are the wages I pay to this employee subject to Kansas income tax withholding? Yes. If you have an employee performing services entirely in Kansas, Kansas income tax withholding tax applies to 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). I am an employer located in Kansas and have an employee who is not a resident of Kansas working in Kansas. Are the wages I pay to this employee subject to Kansas income tax withholding? Yes. If you have an employee performing services in Kansas, those wages are subject to Kansas income tax 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. Additional information regarding the calculation of withholding tax for nonresidents, can be found in the Kansas Withholding Tax Guide (KW-100) here. I am an employer located in Kansas and have an employee who is a resident of Kansas who works in a state other than Kansas. Am I required to withhold Kansas income tax from this employee's wages? Yes. When you employ or pay a Kansas resident for services performed outside of Kansas (either full time or part time), withhold from that employee's total wages the amount of Kansas income tax owed less the amount of income tax required by the other state(s). I am a Kansas employer with an employee who is not a resident of Kansas who works in a state other than Kansas. Am I required to withhold Kansas income tax from this employee's wages? No. If a nonresident employee performs all services outside of Kansas, the wages paid to that employee are not subject to Kansas income tax withholding. I am an employer located in a state other than Kansas and have an employee who is a resident of Kansas working in Kansas. Are the wages I pay to this employee subject to Kansas income tax withholding even though I am not a Kansas employer? Yes. If you have an employee performing services entirely in Kansas, those wages are subject to Kansas income tax 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 required Kansas income tax withholding less the income tax withholding required by the other state(s). I have an employee who works in several states, including Kansas. Am I required to withhold Kansas income tax from this employee's wages? If so, how do I determine how much I am required to withhold? Yes, an employer is required to withhold Kansas income 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 must withhold Kansas income tax from the employee's total wages less the amount of income tax withholding required by the other state(s). Additional information regarding the calculation of withholding tax for nonresidents can be found in the Kansas Withholding Tax Guide (KW-100) here. ———————————————
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