Kansas State Tax Routine (KSTX)

Kansas State Tax Routine Special Routine Processing utilizes the following steps:

Line 1	Multiply the employee’s gross wages for the current payroll period by the number of payroll periods in a year to obtain their Annualized Gross Income (GI).
Line 2	Retrieve Annual Exemption Amount from the Tax Parameters (TAXP) reference page.
Line 3	Compute State Tax Allowance from Employee Tax Parameter (TAX) or State Tax Enrollment (TAXS) multiplied by the Annual Exemption Amount.
Line 4	Determine the employee taxable wage by subtracting the Annual gross value with the Annual exemption amount.
Line 5	Compute annualized withholding amount based on the tax rate setup in Marginal Tax Rates (DEDX).
Line 6	Divide the computed annualized tax withholding amount from line 6 by the payroll frequency.

Note: The Kansas State Tax Routine is only available for sites that utilize the Next Generation Payroll service.

Data Setup Considerations

Sites need to ensure that they have implemented the following Business Process and Data Setup changes at their site prior to using the Kansas Tax Routine.

The Tax Parameters (TAXP) setup for Kansas State Tax Deductions.

The Annual Exemption Amount field is the Personal Exemption Amount of $2,250 for the specified Marital Status.

State Tax Enrollment (TAXS) enrollment (Note: This only applies to employees enrolled in the State Tax Class (TAXCS) that includes a Kansas State Tax Deduction).

The State Tax Allowance field is the allowance count.

Deduction Plan (DPLN) Setup for Kansas State Tax Deductions.

If the Amount/Percent 5 value is 0, the state tax value is calculated at the actuals.
The Amount/Percent 5 value is 1, the state tax value per pay period is round off to the nearest whole dollar value.
Note:- This Deduction Plan (DPLN) set up is applicable only for Next Generation Payroll Services

Non-resident calculation: With regard to the non-resident Kansas employee, the computation of Kansas withholding tax for a nonresident employee who performs services for an employer both inside and outside of Kansas is a two-step process. First, the employer computes the Kansas withholding tax amount on the total wages paid during the period. Second, the resulting amount of Kansas withholding is then multiplied by a nonresident percentage factor.

Example: Rick lives in Missouri but works in Missouri and Kansas for the same employer. He is paid by the hour. He worked 33 of 80 hours in Kansas, and the Kansas withholding on his total wage is $4. Determine his nonresident percentage by dividing the number of hours worked in Kansas (33) by the total hours worked in the pay period (80). 33 ÷ 80 = 41%