The Kansas Department of Revenue released updated withholding tables for calendar year 2017. These updated tables are effective immediately and are to be used by employers for the remainder of the year.
This change is part of recently passed legislation which rolls back Kansas Governor Sam Brownback’s income tax reduction plan. This legislation increased the number of tax brackets from 2 to 3 and increases tax rates for 2017 and 2018. The DOR indicated that withholding rate changes are retroactive to 1/1/17, meaning that many employees will be under-withheld. Additionally, rates will increase again as of 1/1/18. In order to address these concerns and ease the transition, the updated tables reflect the 2018 rates. Applying the 2018 rates effective immediately will help employees catch up on underpayments earlier this year, and no rate update will be needed in January.
The DOR has stated that they will not be assessing penalties for underpayment resulting from this change as long as the difference is paid by April 17, 2018. Please see Kansas Department of Revenue Notice 17-02 for additional details.
Paylocity is working to ensure that our systems are updated with the new Kansas Tax Rates. Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.