Kansas payroll taxes: Your 2026 guide to staying compliant

Kansas’s economy is powered by agriculture. Agriculture accounts for approximately $62 billion in direct output and supports over 143,000 jobs. Other leading industries include aerospace, food processing, and logistics. Small businesses are an integral piece of this picture. As a result, employers must stay informed about payroll taxes in Kansas to remain compliant and manage payroll.

This guide walks Kansas employers through important considerations for the 2025 tax year so that you stay current and compliant with payroll taxes.

Jump to:

• What are payroll taxes?
• Understanding Kansas state payroll taxes
• Other important tax considerations
• Employer responsibilities for payroll taxes in Kansas
• Filing payroll tax returns in Kansas
• Common payroll tax mistakes in Kansas (and how to avoid them)
• How to manage your small business payroll obligations
• Leverage payroll software for compliance in Kansas

What are payroll taxes?

Payroll taxes are taxes based on wages, salaries, or other compensation that both employers and employees must pay. While income taxes are also withheld through payroll, payroll taxes specifically fund programs like Social Security, Medicare, and unemployment insurance.

Understanding Kansas payroll taxes

When starting a business in Kansas, you'll need to understand both federal and state payroll taxes.

Federal payroll taxes

Payroll taxes are mandatory and encompass both federal and state requirements. 

Federal payroll taxes include:

• Federal income tax: This is withheld from each employee's paycheck based on their W-4 form and the current IRS tax brackets. You'll be responsible for calculating the correct amount, withholding it, and then sending it to the IRS.
• Social Security and Medicare taxes: Both of these taxes have a portion paid by the employee and a matching portion paid by you, the employer. For Social Security, the combined rate is 12.4% on the first $176,100 of wages in 2025. For Medicare, it's 2.9% on all wages, with an extra 0.9% for higher earners. You'll withhold the employee's portion and match it.
• Federal Unemployment Tax (FUTA): This is paid solely by you at a rate of 6% on the first $7,000 of each employee's wages. However, most employers get a 5.4% credit, reducing the rate to 0.6%. The graphic below lists some best practices for managing your FUTA obligations.

Kansas state payroll taxes

Kansas state adds its own payroll requirements alongside federal rules. Here's a concise overview of the key obligations you'll need to address:

• Kansas state income tax: Employers must withhold personal income tax from employee wages if they need to withhold federal taxes. They should use the Kansas Form K-4 and send payments to the Department of Revenue.
• Kansas unemployment insurance (UI) tax: Employers fully pay the unemployment insurance tax. This tax fund benefits eligible workers. It is based on the first $14,000 of each employee's wages.

Kansas local payroll taxes

In addition to federal and state requirements, some cities or counties in Kansas may impose local payroll taxes. These local taxes vary by jurisdiction, so it’s essential to stay informed about any obligations based on where your employees work or live.

1. Check with your local government to learn whether your business is subject to any local payroll taxes. Local government agencies offer the best and latest information on rates, rules, and reporting needs.
2. Consult a tax professional if you need help with local requirements. An accountant specializing in Kansas payroll taxes can guide you through local rules and help you avoid problems.

Other important tax considerations

Multiple locations

If your business has employees working in multiple cities or counties, you may be subject to different local payroll taxes for each location.

Changing rates

Local payroll tax rates can change over time, so it's important to stay informed about any updates that may affect your business.

Employer responsibilities for payroll taxes in Kansas

As a Kansas employer, you're responsible for managing a complex array of federal and state payroll taxes, which involves careful calculation, timely withholding, and accurate reporting to various government agencies. Here’s an overview of what you should know.

Registering for payroll taxes

Before paying employees in Kansas, you must register with the Kansas Department of Revenue to withhold state income tax. This registration enables your business to collect and remit employee withholding taxes accurately. You can register online through the KDOR Customer Service Center.

You’ll also need to register with the Kansas Department of Labor to pay state unemployment insurance (UI) tax. This registration is required for most employers and allows you to report wages and submit UI contributions. Registration and related services are available through the KDOL online portal.

Calculating payroll taxes

Accurate payroll tax calculations are key to compliance and avoiding penalties. Employers have many tools and resources to help with this.

• Check government websites: The Kansas Department of Revenue and the Kansas Department of Labor give you current information. This helps you know your payroll tax duties in the state. These sites share details on current withholding tables, wage bases, and employer rates.
• Payroll software: Some small business software payroll programs have built-in Kansas payroll tax calculators that automate calculations, saving you time and minimizing the chance for errors.
• Professional services: If you prefer to outsource payroll, a professional payroll service can handle everything for you.

Whichever method you choose, make sure you stay updated on the current tax rates and wage limits, as these can change every year.

Withholding state payroll taxes

After you calculate the correct amounts, withhold these taxes from your employee's wages. Then, send them to the Kansas Department of Revenue. Stick to Kansas withholding rules and payment schedules. This helps you stay compliant and avoid penalties.

Kansas Income Tax: Withholding uses a wage-bracket method based on Kansas Form K-4. For most employees, you’ll withhold 5.2% of their net wages over a set threshold and for higher incomes, rates can increase to 5.58% on the excess.

• Example: If your employee has income of $700 every two weeks, you’ll deduct $36.40 ($700 x 0.052).

Kansas unemployment insurance (UI) tax: Since employees don’t contribute to UI, this is employer-paid only, but you don’t withhold it from wages. It's calculated separately. Employer UI rates for experienced businesses go from 0.00% to 6.65% on the first $14,000 per employee. New employers usually begin at 1.75%. Also, some industries have different starting rates.

• Example: As a new business, you’ll likely start at 1.75%. If your employee’s annual income is $14,000 or greater, you’ll pay $245 ($14,000 x 0.0175).

By applying these calculations to each paycheck, you ensure accurate withholdings and compliance with state requirements.

Remitting state payroll taxes

Next, you’ll need to submit the withheld taxes, along with your employer-paid contributions, to the Kansas Department of Revenue. The easiest way to do this is through the Kansas Customer Service Center online portal. Your filing frequency may be monthly, quarterly, or annually, depending on your total tax liability.

Filing payroll tax returns in Kansas

In Kansas, employers must follow both quarterly and yearly payroll tax return rules. This ensures they meet state and federal requirements. Here's a breakdown of the 2025 state-level requirements:

Quarterly requirements