Kansas Payroll: Employer Tax and Software Guide
Kansas payroll for employers: the two-bracket 5.20 and 5.58 percent rates, Form K-4, the $15,100 SUTA base, the 46-hour rule, and 10 providers compared.
Kansas Payroll: The Employer Guide
A two-bracket income tax that older published guides still get wrong, a state withholding form separate from the federal W-4, an unemployment wage base that rose to $15,100 for 2026, an overtime threshold of 46 hours that applies to almost nobody, and how 10 payroll providers price the work
Kansas is one of the easier states in the country to run payroll in, but some of what is published about Kansas payroll is out of date. If another founder asked me where to start here, I would tell them to check the income tax rates in their payroll software before anything else.
This guide covers what Kansas actually requires in 2026, the state-specific forms and quirks that trip up employers, and how 10 payroll providers price the work.
The structural picture is simple. There are three obligations rather than the much longer lists some states impose, no city or county income tax anywhere in the state, no disability or paid family leave contribution, and a wage payment law that gives you until the next regular payday to issue a final check. An employer arriving from California or New Jersey will find the list short.
The problem is the rate table. Kansas replaced its three-bracket income tax with a two-bracket schedule for tax year 2024, and some of the vendor pages, calculators, and tax guides covering Kansas payroll still show the retired 3.1 percent, 5.25 percent, and 5.7 percent figures. Withhold on those and every paycheck you issue is wrong.
The three layers of Kansas payroll
Kansas payroll has three layers: state income tax withholding, unemployment insurance, and workers compensation. It is worth seeing the whole set at once, because the useful fact about Kansas is how much is absent rather than how much is present.
| Layer | Who pays | 2026 figure | Who collects it |
|---|---|---|---|
| State income tax withholding | Employee | 5.20% and 5.58% on two brackets | Kansas Department of Revenue |
| Unemployment insurance | Employer only | $15,100 wage base, 1.75% new employer | Kansas Department of Labor |
| Workers compensation | Employer only | Private carrier, required above $20,000 payroll | Private insurance market |
| Local or city income tax | Nobody | None on wages anywhere in the state | Not applicable |
| Disability or paid family leave | Nobody | No state program | Not applicable |
The bottom two rows are the ones that matter for planning. States with local income taxes force address-by-address tax lookups and filings with several agencies; states with paid leave programs add contributions on separate wage bases. Kansas has neither. A Kansas employer with staff in Wichita, Topeka, and Overland Park files with exactly the same two agencies as an employer with one person in one town.
The two-bracket rate older guides get wrong
Kansas income tax now runs on two rates, 5.20 percent and 5.58 percent. Senate Bill 1, passed in the 2024 special session, collapsed the three-bracket Kansas income tax into two and made the change retroactive to tax year 2024 and applicable to every year after.
| Structure | Bottom rate | Middle rate | Top rate |
|---|---|---|---|
| Retired three-bracket schedule | 3.10% | 5.25% | 5.70% |
| Current two-bracket schedule | 5.20% | Not applicable | 5.58% |
Note what happened in each direction. The bottom rate rose sharply, from 3.1 percent to 5.20 percent, while the top rate came down slightly, from 5.7 percent to 5.58 percent.
Senate Bill 1 also raised the personal exemption, now $9,160 for a single filer, so despite the higher bottom rate, an employer still withholding on the old schedule generally takes too much from each paycheck. The error does not announce itself until an employee files a return.
| Filing status | 5.20% applies to | 5.58% applies to |
|---|---|---|
| Single, head of household, married filing separately | Taxable income up to $23,000 | Taxable income above $23,000 |
| Married filing jointly | Taxable income up to $46,000 | Taxable income above $46,000 |
Because the two rates sit only 0.38 percentage points apart, Kansas behaves close to a flat-rate state. The practical consequence for an employer is that the bracket boundary rarely does much work; getting the two rates themselves right is what matters.
Withholding is deposited on Form KW-5, whose frequency the Department of Revenue assigns based on your withholding volume, ranging from annual through quarterly, monthly, semi-monthly, and quad-monthly (four times a month). The KW-5 is filed even in a period with zero withholding. The annual reconciliation is Form KW-3, due January 31 along with W-2s and any 1099s reporting Kansas withholding.
Form K-4 and why the federal W-4 is not enough
Kansas maintains its own employee withholding certificate, Form K-4, and missing it is the single most common onboarding gap for employers expanding into the state.
| Element | How it works |
|---|---|
| Form | K-4, Kansas Employee's Withholding Allowance Certificate |
| Who must complete it | Every employee who is to have Kansas tax withheld |
| When | As soon as the employee is hired or taxable pay begins |
| If none is on file | Withhold at the single rate with no allowances |
| Refiled when | Marital status or number of exemptions changes |
Kansas keeps a separate form because its allowance rules diverge from the federal ones in ways the W-4 cannot express. A married employee whose spouse also earns income marks the single allowance rate, which keeps two Kansas earners from being under-withheld.
Dependents a spouse has already claimed on their own K-4 cannot be claimed again. An employee can also specify an additional Kansas-only amount to withhold from each paycheck. The form has no section for tax credits, unlike Step 3 of the federal W-4.
There is also Form K-4C, the Kansas Employee Certificate for Allocation of Withholding Tax. Residents and nonresidents who work partly outside Kansas can use it to report the share of their income earned in the state.
Nonresident situations arise more often here than the geography alone would suggest, because Kansas has no reciprocity agreement with any state, including Missouri directly across the metropolitan area.
Unemployment insurance and the new wage base
Kansas unemployment tax has seen two big changes since 2024: the new employer rate fell for 2025, and the wage base rose for 2026. The construction rate and the top experience rate also rose for 2026.
| Item | 2025 | 2026 |
|---|---|---|
| Taxable wage base | $14,000 | $15,100 |
| New employer rate, non-construction | 1.75% | 1.75% |
| New employer rate, construction | 5.50% | 5.55% |
| Experience-rated range | 0.00% to 6.65% | 0.00% to 6.95% |
| Quarterly report | K-CNS-100 | K-CNS-100 |
The wage base rose to $15,100 per employee effective January 1, 2026. A page still showing $14,000 understates the per-employee liability by roughly $19 a year at the new employer rate and considerably more for an experience-rated employer at the top of the range.
The new employer rate moved the other way a year earlier, falling to 1.75 percent for 2025 from 2.70 percent. On a $15,100 base, a new non-construction employer's maximum unemployment cost is now about $264 per employee per year.
Kansas also created a zero percent rating group for employers whose reserve ratio exceeds 100 percent, which means a long-established employer with a clean claims history can pay nothing at all. At the other end, the U.S. Department of Labor's January 2026 summary of state unemployment laws puts the top Kansas experience rate at 6.95 percent before surcharges.
Employers whose account balance has gone negative are rated on a separate schedule: 5.6 to 7.6 percent plus any solvency adjustment, according to the Kansas Department of Labor's employer handbook. Whatever your rating group, confirm your own assigned rate against the annual rate notice rather than a third-party summary.
Workers compensation sits outside all of this, bought from a private carrier rather than a state fund. It is required for essentially all Kansas employers except certain agricultural operations and those whose gross annual payroll was $20,000 or less in the preceding calendar year and is expected to stay there.
Minimum wage, the 46-hour rule, and payday rules
Minimum wage
| Category | 2026 rate |
|---|---|
| Standard minimum wage | $7.25 |
| Tipped cash wage, with a $5.12 maximum tip credit | $2.13 |
| Federal youth wage, first 90 days, under 20 | $4.25 |
Kansas sits at the federal floor and has since 2010, when the state rate rose from an older and much lower figure to match $7.25. No Kansas city or county sets a different rate, because state law bars local governments from requiring pay above the minimum.
No bill to raise the state minimum has become law since then, so $7.25 remains the operative number, and any page quoting a higher Kansas minimum is describing a proposal rather than law.
The 46-hour overtime rule and who it actually covers
Kansas has a state overtime statute, K.S.A. 44-1204, setting the threshold at 46 hours per workweek. It is frequently cited as though it were the Kansas rule. It is not, for most employers.
| Employer type | Overtime threshold | Governing law |
|---|---|---|
| Covered by the federal FLSA | 40 hours per workweek | Fair Labor Standards Act |
| Not covered by the FLSA | 46 hours per workweek | K.S.A. 44-1204 |
| Coverage unclear | Use 40 hours | Fair Labor Standards Act, the safer assumption |
FLSA coverage generally reaches employers engaged in interstate commerce or with annual revenue above $500,000, which describes the large majority of Kansas businesses with employees. The 46-hour threshold is a narrow carve-out for small, purely local operations. Applying it to a covered workforce means up to six hours of unpaid overtime per employee per week, which adds up quickly in back pay.
New hire reporting
Kansas employers report new and rehired employees to the Kansas New Hire Directory within 20 days of hire, according to the Kansas Department of Labor. Under K.S.A. 75-5743, rehires count again once an employee has been separated for 60 or more consecutive days, which brings in seasonal staff, substitutes, and anyone returning from an extended layoff or unpaid leave.
10 payroll providers for Kansas employers compared
Every provider below files Kansas withholding and unemployment. Because Kansas lacks the local tax layers that separate platforms in Ohio or Pennsylvania, the differentiators here are ordinary ones: total price, whether the plan tolerates a second state without a costly upgrade, and whether onboarding actually collects the K-4 rather than leaving it to you.
| Provider | Best For | Starting Price | Pricing Model | KW-5 and KW-3 Filing | Onboarding Tools | Multi-State Included | Trial |
|---|---|---|---|---|---|---|---|
| OnPay | Single-plan pricing, no tiers | $49 + $6/ee | Base + PEPM | 1 month | |||
| Gusto | First-time payroll buyers | $49 + $6/ee | Base + PEPM | Until 1st run | |||
| Patriot | Lowest cost, tight budgets | $37 + $5/ee | Base + PEPM | 30 days | |||
| Square | Retail and restaurant teams | $35 + $6/ee | Base + PEPM | Until 1st run | |||
| SurePayroll | Very small and household teams | $29 + $7/ee | Base + PEPM | Varies | |||
| QuickBooks | Existing QuickBooks accounting | $50 + $7/ee | Base + PEPM | 30 days | |||
| ADP RUN | Compliance depth at scale | Quote | Quote | Varies | |||
| Paychex Flex | Hands-on service model | Quote | Quote | Varies | |||
| Paylocity | Growing teams wanting HR depth | Quote | Quote | Demo | |||
| Rippling | Payroll tied to HR and IT | $40 + $8/ee | Modular PEPM | Demo |
OnPay
OnPay sells one payroll plan at $49 per month plus $6 per employee, so there is no tier to climb; HR tools and time tracking are paid add-ons. Multi-state is part of the base plan rather than an upgrade, which is the feature that earns its keep on the Kansas side of the Kansas City metropolitan area.
OnPay also maintains a Kansas payroll tax and registration guide, a reasonable proxy for whether a vendor keeps state tables current.
Gusto
Gusto is a common first payroll purchase for US small businesses, with automatic tax filing, published pricing, and onboarding built into the same account. Simple runs $49 per month plus $6 per employee after a base increase from $40 during 2025, and Gusto files the KW-5, the KW-3, and the Kansas new hire report.
The single-state limit on Simple deserves attention in Kansas specifically. The Kansas City metropolitan area crosses into Missouri, so one hire on the wrong side of State Line Road moves you to Plus at $80 plus $12 per employee.
Patriot Software
Patriot Full Service is the lowest-cost full-service payroll on this page at every headcount modeled below: $37 per month plus $5 per employee, with additional states at $12 per month each.
Patriot's Basic plan is $17 per month plus $4 per employee if you file taxes yourself. In Kansas that is a more realistic proposition than in most states, given that there are only two filings to make and no local returns at all.
Square Payroll
Square Payroll's full-service plan runs $35 per month plus $6 per person paid and covers federal and state tax calculations, payments, and filings. For a Wichita or Lawrence restaurant already running Square point of sale, timecard data flows into payroll with no integration work and tip handling is native.
SurePayroll
SurePayroll is owned by Paychex and built for very small employers and household employers. The Small Business plan is $29 per month plus $7 per employee, with a flat $9.99 monthly multi-state fee however many states are involved. A separate Nanny and Household plan makes it a particularly good fit for a Kansas household employer paying a nanny or caregiver.
QuickBooks Workforce Payroll
QuickBooks Workforce Payroll, formerly QuickBooks Payroll Core and renamed in May 2026, runs $50 per month plus $7 per employee after the per-employee increase of July 1, 2026.
The case for QuickBooks payroll has not changed: if your books live in QuickBooks Online, payroll reaches the general ledger without an export. In a state with no local tax layer to worry about, the accounting integration carries proportionally more of the decision than it would in Ohio or Pennsylvania.
ADP RUN
ADP describes the same tax compliance operation behind every RUN package: it calculates, files, deposits, and reconciles payroll taxes, responds to agency inquiries, and pays the resulting fines if it makes a filing error.
That service pays for itself in multi-jurisdiction states, but Kansas has no municipal returns to file and no separate paid leave or disability wage bases to track. The case for ADP here is a Kansas employer with genuine multi-state complexity, or one who expects to grow past the point where a small platform is comfortable.
The cost is opacity. ADP publishes no RUN rates, so every package from Essential to HR Pro is quoted individually. In ADP's favor, multi-jurisdiction payroll is included in all four packages, and no contract is required: ADP says services can be terminated at any time.
Paychex Flex
Paychex Flex sells a service relationship as much as software, with a payroll specialist included on the Complete package. Pricing is quote-only across the Basic, Foundations, Advanced, and Complete packages, and the standard service agreement can be ended on 30 days' notice.
In Kansas, the service model earns its keep less on tax complexity than on the wage payment rules, where a question about the 15-day pay period constraint or a contested final check benefits from someone to call.
Paylocity
Paylocity sits between small-business payroll and full human capital management suites, aimed at companies that have outgrown basic payroll: its clients average more than 150 employees, per its annual report. It publishes pages on Kansas employment law and withholding updates, and it prepares and files state withholding returns. Pricing is quote-based and implementation is a project rather than a signup.
Rippling
Rippling puts payroll, HR, and IT provisioning on one employee record. Its pricing page is a quote form, but its small-business page starts payroll plans at $8 per user per month plus a $40 monthly base fee.
Its blog prices the core platform at $8 per employee and the payroll module, sold separately, at another $8 billed annually or $10 billed monthly, so a configured quote can run higher. The final cost also depends on which other products you add.
What each provider actually costs a Kansas employer
The table below models published rates at three headcounts, with a column for what a second state costs, because that is the variable most likely to change the answer for a Kansas employer near the Missouri line.
| Provider | 10 employees | 25 employees | 50 employees | Second State | Notes |
|---|---|---|---|---|---|
| SurePayroll | $99 | $204 | $379 | $9.99 flat | Add-on HR features |
| Square | $95 | $185 | $335 | Included | Best with Square POS |
| Patriot | $87 | $162 | $287 | $12 monthly | Cheapest full service |
| Paychex Flex | Quote | Quote | Quote | Quote | No published rates |
| OnPay | $109 | $199 | $349 | Included | One plan, no tiers |
| Gusto Simple | $109 | $199 | $349 | Tier upgrade | Simple is single state |
| QuickBooks | $120 | $225 | $400 | $12 monthly | Syncs to QuickBooks GL |
| ADP RUN | Quote | Quote | Quote | Included | Quote-only pricing |
Square and Patriot are the cheapest published options at every headcount. Because Kansas has no local filings to complicate the picture, the ranking here is closer to a pure price comparison than it would be in a state with municipal returns, and the cheapest capable option is a more defensible choice than usual.
The variable that reorders the table is the second state: Gusto Simple forces a tier upgrade that roughly doubles the bill, while SurePayroll charges a flat $9.99, Patriot and QuickBooks charge $12 a month for each extra state, and OnPay, Square, and ADP include it.
Choosing a payroll provider for Kansas
Choosing a payroll provider for Kansas comes down to five questions. Put each one to the vendor during a trial or demo, before you sign anything.
Before you choose
FirstHR covers the document layer that feeds payroll, while payroll processing, tax filing, and benefits administration come from the providers above. Since the whole argument of this page is that Kansas payroll computation is comparatively simple, the right move is to pick a capable platform at the lowest sensible price and move on.
That document layer means onboarding workflows that put Form K-4, the federal W-4, and Form I-9 on each new hire's first-day task list, plus e-signature on offer letters and acknowledgments, employee records, and document management that keeps completed forms in the employee file. It costs a flat $98 a month for up to 10 people or $198 for 11 to 50.
The Kansas obligations that most often go wrong are records problems rather than calculation problems, namely collecting a signed K-4 at hire, filing the new hire report within 20 days, and re-reporting rehires separated for 60 or more days. Put those three on your hiring checklist, whichever platform you choose.
Frequently Asked Questions
What are the Kansas payroll taxes an employer has to handle?
Three: state income tax withholding on two brackets at 5.20 and 5.58 percent, remitted on Form KW-5 and reconciled on Form KW-3; unemployment insurance on the first $15,100 of wages at 1.75 percent for new non-construction employers; and workers compensation from a private carrier. There is no local income tax and no state disability or paid family leave contribution.
What is the Kansas income tax rate?
Two brackets: 5.20 percent on taxable income up to $23,000 for single filers and $46,000 for married filing jointly, and 5.58 percent above those thresholds. Senate Bill 1 from the 2024 special session replaced the earlier three-bracket schedule of 3.1, 5.25, and 5.7 percent, effective for tax year 2024 onward. Rate tables still showing 3.1 percent as the bottom rate are out of date.
Does Kansas require its own withholding form?
Yes. Every employee who is to have Kansas tax withheld completes Form K-4 at hire; without one, the employer withholds at the single rate with no allowances. Kansas maintains a separate form because its allowance rules differ from the federal ones: a married employee with an earning spouse marks the single rate, dependents cannot be double-counted, and employees can add a Kansas-only additional withholding amount. The federal W-4 alone is not sufficient.
Is there a city or local income tax in Kansas?
Not on wages. No Kansas city, county, or school district taxes earned income, which is a meaningful contrast with Missouri directly across the Kansas City metropolitan area. Kansas law does allow a local tax on earnings from money, notes, and other debt instruments, but it reaches interest-type income rather than wages, and nothing is withheld from pay.
What is the Kansas unemployment insurance wage base?
$15,100 per employee for 2026, up from $14,000 in 2025. New employers pay 1.75 percent outside construction, down from 2.70 percent before 2025, and 5.55 percent in construction. Experience-rated employers range from a zero percent group for those with a reserve ratio above 100 percent up to 6.95 percent before surcharges. Reporting is quarterly on Form K-CNS-100, and electronic filing is required at 25 or more employees.
What is the Kansas 46-hour overtime rule?
A state overtime threshold under K.S.A. 44-1204 that applies only to employers not covered by the federal FLSA, generally small local businesses under roughly $500,000 in revenue and not engaged in interstate commerce. Most Kansas employers are FLSA-covered and owe overtime after 40 hours. Where coverage is unclear, paying overtime after 40 hours is the safer course.
How often must Kansas employers pay employees?
At least once per calendar month on paydays designated in advance, under K.S.A. 44-314. Subsection (h) adds a constraint most summaries omit: a pay period cannot end more than 15 days before the payday that covers it, unless a variance is authorized by state or federal law.
When is a final paycheck due in Kansas?
By the next regularly scheduled payday, for both quits and discharges, under K.S.A. 44-315. Willful failure to pay carries a penalty of one percent of the unpaid wages for each day the failure continues after the eighth day, excluding Sundays and legal holidays, or an amount equal to 100 percent of the unpaid wages, whichever is less.
How long do Kansas employers have to report a new hire?
Twenty days from the hire date, per the Kansas Department of Labor. The report goes to the Kansas New Hire Directory, and a rehire counts again after a separation of 60 or more consecutive days under K.S.A. 75-5743. A Kansas new hire also needs the federal W-4, Form K-4, and Form I-9.
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