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Taxes

Business Formation Fees

Corporate Franchise Taxes

Income Taxes - Corporate

Income Taxes - Individual

Property Taxes

Sales & Use Taxes

Unemployment Insurance

Workers' Compensation

Incentives

Advanced Energy

Enterprise Zones

Financing Programs

Foreign Trade Zones

Income Tax Credits

Int'l Trade Incentives

Life Sciences and R&D

Property Tax Exemptions

Sales & Use Tax Exemptions

Training Programs

Utility Incentives

Venture Capital

Tax & Incentive Profile

Unemployment Insurance

INFORMATION FOR BOTH KANSAS AND MISSOURI IS PRESENTED BELOW.

Kansas

Kansas does not have a fixed rate schedule—positive balance employers’ rates are adjusted annually based on the ratio of the size of the fund balance to total payroll. For 2011, positive balance employers pay between 0.11% and 5.4%. Negative balance employers pay between 5.6% and 9.4% (that is, 5.4% plus a surcharge of 0.2% to 2.0% based on the size of the negative reserve ratio, plus an additional surcharge to pay interest on the loan from the Federal UI which ranges from 0.10% to 2.0%). Unemployment insurance rates are applied to the first $8,000 in wages paid annually to each employee.

In Kansas, the normal entry rate set for a new employer is contingent upon the type of business involved. Businesses in the construction industry begin with a 6% tax rate; all other business entities will have a 4% rate. Companies moving into Kansas with an assigned experience rating from another state must establish a new rate in Kansas. New companies gain experience ratings after being in the state at least 24 consecutive months.

Effective July 1, 2011, the maximum weekly benefit for new claims filed is $444 for up to 26 weeks. The minimum weekly benefit amount is $111. Employees dismissed without misconduct are eligible to receive benefits after a one-week waiting period. An employee who voluntarily quits without good cause attributable to the work or to the employer or an employee who was discharged for misconduct connected with the work may be disqualified from receiving benefits. Disqualifications are explained in more detail in the complete Kansas Employer Handbook.

The Kansas Department of Labor oversees unemployment insurance in Kansas.

Shared Work Unemployment Insurance

In lieu of a layoff, an employer may divide the workday among a group of affected employees. Under the shared work unemployment insurance program, employees are allowed to receive a portion of their unemployment insurance benefits while working reduced hours. This program is only available to employers with a positive account balance.

Missouri

In Missouri, the unemployment insurance tax is levied on the first $13,000 of an employee’s annual compensation. The taxable wage base can increase in increments of $1,000 or decrease in increments of $500, depending on the state’s unemployment fund balance, but it cannot fall below the federally required minimum of $7,000. In 2011, employers with a credit balance pay tax rates from 0.0% to 3.51%. An employer with a deficit account pays 4.68% to 9.75%. The normal entry rate set for a new employer is contingent upon the type of business involved, however, in 2011, all new employers pay 3.51%, except for those in the construction and mining related industries. The contribution rate for construction will be 4.22% and for mining will be 3.934%. The contribution rate for nonprofit and governmental employers will be 1.30%.

Thus, a new employer’s cost per employee would be 3.51% of $13,000 or $456.30. An employer may qualify for a rate below the entry rate based on at least 12 months benefit charge ability. A new employer may qualify for a rate based on a predecessor’s experience in the case of an acquisition of a business. The maximum unemployment benefit in 2011 is $320 per week for up to 26 weeks for claims filed before April 17, 2011 and is $320 per week for up to 20 weeks for claims filed after April 17, 2011.

Many states have had to adopt the usage of surtaxes to defray the costs of benefits attributed to the severity and duration of the most recent recessionary period. The surtax in Missouri is based on the unemployment compensation fund balance and increases rates by 10, 20, or 30% of the tax due or reduces rates by seven or 12% of tax due, depending on the balance in the fund. For 2011, there is a surcharge of 30% on rates due to the fund balance. If an employer has been maximum-rated for the past two years, it receives an additional surcharge of .25% prior to the 30% percentage of increase. An employer maximum rated for three years receives an additional surcharge of .50% (.75 if max rates for four years; 1% if max rate for five years; 1.5% if max rate for six years) prior to the 30% percentage of increase. (Note that the 3.51% entry rate referred to above is the total rate including the applicable surcharge.)

The Department of Labor and Industrial Relations' Division of Employment Security oversees unemployment insurance in Missouri.

Shared Work Program

This program was initiated to encourage job retention. Under the program, employers reduce work hours a certain percentage, rather than lay off employees. Those employees then receive both wages for actual hours worked, and partial unemployment insurance benefits.

 

DEFINING THE GREATER KC METRO AREA

Kansas City is a Missouri/Kansas bi-state metropolitan area. All statistical references made to Kansas City Metropolitan Statistical Area (MSA) include the counties of Cass, Clay, Clinton, Jackson, Lafayette, Platte and Ray in Missouri, and Johnson, Leavenworth, Miami and Wyandotte counties in Kansas. The greater Kansas City area also includes the adjoining Lawrence, KS, St. Joseph, MO, and Topeka, KS MSAs, as well as the Atchison, KS, Chillicothe, MO, Ottawa, KS, and Warrensburg, MO areas.