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July 22, 2021
2021-1403

Kansas law increases standard deduction for personal income tax; revised 2021 income tax withholding tables published

By overriding the veto of Governor Laura Kelly, the Kansas House and Senate enacted SB 50, which, effective retroactive to January 1, 2021, increases the standard deduction amounts to $3,500 for single filers, $6,000 for single head-of-household filers and $8,000 for married filers filing jointly, up from $3,000, $5,500 and $7,500, respectively.

To implement this provision of SB 50, the Kansas Department of Revenue announced on July 13, 2021 that it issued revised 2021 withholding tax tables, which reflect the higher standard deductions. Employers are required to implement the revised income tax withholding tables immediately. Employers are not required to make retroactive adjustments to Kansas income tax withheld prior to their implementation of the revised income tax withholding tables. (Kansas Withholding Tax Guide, rev. 6/21/2021.)

Supplemental income tax withholding rate

The supplemental income tax withholding rate remains at 5% for 2021.

Supplemental wages are compensation paid to an employee in addition to the employee's regular wage. They include, but are not limited to, bonuses, commissions, overtime pay, accumulated sick leave, severance pay and back pay.

The 5% supplemental rate is allowed for Kansas income tax withholding if the supplemental withholding rate is used for computing federal income tax withholding. (Kansas Withholding Tax Guide, p. 8.)

Form K-4, Kansas Withholding Allowance Certificate

Every employee must provide a signed Form K-4 to their employer. Use of federal Form W-4 is not allowed for use in computing Kansas income tax withholding. If an employee does not provide Form K-4, the employer is required to withhold Kansas income tax at the single rate with no allowances.

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

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