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April 2, 2021
2021-0693

Kansas executive order ends teleworker income tax relief for COVID-19 effective January 1, 2021

In Executive Order 21-18, Kansas Governor Laura Kelly ends the income tax relief that was applied in 2020 to the wages of teleworkers due to the COVID-19 emergency.

On January 27, 2021, Kansas Governor Laura Kelly announced that in consideration of the COVID-19 emergency, Executive Order 21-01 was issued providing that for the period March 13, 2020 through December 31, 2020 employers had the option to withhold Kansas state income tax based on the state of the employee's primary work location rather than the state in which the employee was temporarily teleworking due to COVID-19. (See EY Tax Alert 2021-0246.)

Executive Order 21-18 reaffirms that effective on and after January 1, 2021, employers are required to withhold Kansas state income tax from all wages paid to residents and from wages paid to nonresidents working within the state according to the requirements in K.S.A. 79-3296. (See also KW-110.)

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 for the period March 13, 2020 to December 31, 2020.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)
   • Kenneth Hausser (kenneth.hausser@ey.com)

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