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Setting up Payroll for Kansas

pfaloney

Well Known Member
The company I am with is moving its headquarters from Missouri to Kansas. Since Missouri and Kansas do not have reciprocal state tax agreements, we now have to set up Kansas in Payroll 8.12.

We have engaged Oracle, however, I want to see if anyone has done this before.

I am more concerned about the setup for Kansas. Tax Area X-Reference only has 1 record for KS with a type of F and a Description of "KS/DO NOT USE". Out Missouri setup have a number of records in this table.

Any help is greatly appreciated since I am new to the Payroll Module and this issue was passed to me late last week
 

SarahMaeMills

Active Member
Hi Patrick,

Kansas and Missouri actually DO have reciprocity. However, you should probably tax your employees within their new work state of KS, rather than try to tax them based on home state. Kansas will need a valid F type record, and you will need to change the work state on those employees who are currently in the Missouri office to 17 - KS on their Employee Master record.

I used to work for the City of Olathe, who uses JDE Payroll and only taxes within the state of KS. I will ask for a screenshot of their Tax Area Info and Corporate Tax IDs setup and will post it or message it to you.
 

SarahMaeMills

Active Member
Hi Patrick,

You will need to set up your Corp Tax IDs for KS and your Tax Areas as well. I attached some screenshots so you have an example.

You'll also have to change the Employee Master Home/Work State fields in the National/Fiscal Data screen, and have employees fill out K4 forms. You will then enter their withholdings into into Tax Overrides screen.

I hope this helps!
 

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