Dorothy was right. She wasn’t in Kansas anymore. But you are, and you feel right at home in The Sunflower State. That’s why you started a small business. Whether you own the trendiest bar in Manhattan or the tastiest sandwich shop in Wichita, there’s one thing that probably doesn’t make you feel very homely: payroll taxes.
This is where we come in. We designed a handy payroll tax calculator with you in mind, so that you can focus more on your business and less on taxes. All you need to get started is to enter each employee’s wage and W-4 information. Our payroll calculator will figure out both federal and Kansas state payroll taxes for you.
First of all, we gotta give Uncle Sam his fair share. Below is a quick overview of all the steps that go into calculating federal payroll taxes. If you would like to see a more detailed explanation, feel free to check out our step-by-step guide here.
Employees who earn more than $200,000 in taxable wages must pay what’s called an Additional Medicare Tax (super original, right?). The tax rate is 0.9% on top of the original 1.45%. However, only the employee is responsible for paying the Additional Medicare Tax, so you don’t have to match the extra 0.9%.
Note a huge caveat that you can claim a tax credit of up to 5.4% for the Kansas state unemployment taxes you pay. That means that at the end of the day, you’ll only have to pay 0.6%. Watch this IRS video on how you can claim your FUTA tax credit.
Now that we’ve gone over federal taxes, let’s talk about Kansas state taxes. The state’s income taxes are broken down into three brackets, with rates ranging from 3.1% to 5.7%. There are no local city payroll taxes, so your employees pay the same state taxes no matter where they live.
As an employer in Kansas, you are responsible for paying the state unemployment insurance (SUI). Rates can go up to 7.5% of each employee’s income, up to a wage base of $14,000.
If you’re a new business owner (congratulations!), your unemployment tax rate is set at 2.7% unless you’re in construction, in which case your new rate is 6.0%.
You’ve done it! You managed to get through both federal and state payroll tax withholdings, and now you’re ready to cut some checks.
You obviously need to make sure your employees get paid on time, but please don’t forget to set aside money for employer taxes. FICA, FUTA, and SUI payments can add up if you don’t remit them on a regular basis.
Federal tax filings are due quarterly by filing Form 941. FUTA taxes are due quarterly, but you only need to file annually using Form 940. You can pay taxes using the EFTPS payment system. Detailed information on employment tax due dates can be found here.
If all that wasn’t enough and you need any more help, here are some additional Kansas payroll tax resources that you should check out.