Payroll Done Right

Kansas Payroll Requirements: What Employers Need to Know in 2026

Kansas payroll uses a two-bracket income tax structure in 2026: 3.1% on the first $15,000 of taxable income for single filers ($30,000 for married filing jointly), and 5.7% on all income above those thresholds. Employers apply these rates using the Kansas withholding tables published by the Kansas Department of Revenue (KDOR), which account for the standard deduction and exemptions claimed on the employee's K-4 withholding certificate. Kansas residents and non-residents earning Kansas-source wages are both subject to withholding. Employers file the quarterly KW-5 return with KDOR to remit withheld amounts and reconcile each quarter's payroll.

State Unemployment Insurance in Kansas uses a taxable wage base of $14,000 per employee in 2026. New employers pay 2.7% on that base — a maximum of $378 per worker per year. The Kansas Department of Labor administers the SUI program, and quarterly wage and contribution reports are filed separately from the income tax withholding return. Kansas agricultural employers are subject to different SUI rate schedules than non-agricultural employers, so farms and agribusinesses should verify their applicable rate schedule directly with the Kansas Department of Labor each year. Learn how Kansas SUI experience rates are calculated and what the agricultural employer rate schedule looks like compared to standard commercial accounts.

Kansas's minimum wage is $7.25 per hour, the federal minimum. Kansas has not enacted a higher state minimum, and the state preempts local governments from setting minimum wages above the state floor, so no Kansas city or county can impose a higher local minimum. Kansas allows a tip credit consistent with federal rules: tipped employees may receive a direct cash wage of $2.13 per hour, with the employer obligated to make up any shortfall when tips do not bring total hourly earnings to $7.25. Kansas has no state paid family and medical leave law and no state disability insurance program in 2026.

Final paycheck timing in Kansas requires that the final wages be paid on the next regular payday following separation. This rule applies to both discharged and resigned employees. Kansas does not require immediate payment on the day of termination. If an employer fails to pay final wages on time, the employee may file a wage claim with the Kansas Department of Labor, which can pursue civil remedies including the wages owed plus a penalty of up to 25% of the unpaid amount or $500, whichever is greater. Review Kansas payday law requirements including permissible deductions, pay stub obligations, and the wage claim process.

New hire reporting in Kansas must be submitted within 20 days of the employee's first day of work to the Kansas New Hire Directory, operated by the Kansas Department for Children and Families. Reports can be submitted online, by mail, or by fax. Required information includes the employee's name, address, Social Security number, date of hire, and the employer's federal EIN and Kansas tax registration number. Multi-state employers may designate Kansas or another state as the reporting state with prior notification to the federal HHS new hire directory.

For businesses new to Kansas payroll, the two-bracket income tax structure is more straightforward than many states but still requires using the current K-4 certificate values and the annual withholding tables. Registration involves the Kansas Department of Revenue for withholding and the Kansas Department of Labor for SUI. The relatively moderate wage base of $14,000 means SUI costs are more contained than in high-base states like Idaho or Alaska. See the Kansas new employer registration guide for step-by-step instructions on setting up both your withholding account and your unemployment insurance account before your first pay run.