Kansas Association
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Impact of Kansas Tax Changes

30 Jun 2017 3:15 PM | Anonymous

Impact of Changes to Kansas Income Tax 

The Kansas Department of Revenue has issued new notices regarding changes in tax rates and policies in effect July 1, 2017, as a result of the passage of Sub for SB 30 by the 2017 Kansas Legislature.  The 2017 session was all about filling a budget hole and Kansas businesses and individuals are affected immediately.

The rate increases are retroactive to January 1, 2017, which means that businesses and individuals should begin as soon as possible to withhold or set aside the necessary funds for Kansas income taxes.

Sub for SB 30 reinstates taxes on non-wage income for small businesses and raises rates for individual income taxes for 2017 and again in 2018.  It also divides taxpayers into three brackets, instead of two.  The income tax rates were not raised to pre-2012 rates, but will result in smaller paychecks for Kansas employees. 

Department of Revenue Notices:  https://www.ksrevenue.org/prnewtaxnotices.html 

The Kansas Department of Revenue has released new tables for employers to increase withholdings beginning on July 1 to match 2018 rates.

In a statement, the agency said it is using the 2018 rates in its tables for 2017 to “ensure that enough income is withheld from paychecks to catch up for the increased and backdated tax liability in the second half of the year, and also to provide certainty for Kansas employers.”  Read more at Kansas.com here:  http://www.kansas.com/news/politics-government/article158628974.html 

Employers are asked to begin withholding at the higher rate as of July 1.  Read the notice:  https://www.ksrevenue.org/taxnotices/notice17-02.pdf.  Find the new withholding tables here:  https://ksrevenue.org/forms-btwh.html

Non-wage income filers, such as sole proprietors or LLC owners, are asked to begin making estimated payments immediately-  https://ksrevenue.org/pdf/k-40es17.pdf - although penalties will not be assessed now. 

Additionally, the 2018 due dates for remitting withholding tax to the state and for notifying employees of taxes withheld have changed from the last day of February to January 31.  

Kansas Association of Beverage Retailers       P.O. Box 3842, Topeka, KS  66604      Email KABR  

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