SECTION VII. - Obligations of Liable Employers

Employer Account Number

Each liable Kansas employer is assigned a six-digit employer account number. This number should appear on all correspondence and forms submitted by the employer to the department.

Quarterly Wage Report and Unemployment Tax Return

Except for those employers who are liable for reimbursement payments in lieu of contributions, every liable Kansas employer is required to report and pay contributions on wages paid to its workers, both permanent and temporary, except for those specifically excluded (see Section III).

For reporting purposes, all employers are provided form K-CNS 100, Quarterly Wage Report and Unemployerment Tax Return. This report is due on the last day of the month following the end of each calendar quarter and must be filed even though there were no wages reportable or contributions due for the quarter. The report is considered filed as of the date it is placed in the United States mail.

A Quarterly Wage Report and Unemployment Tax Return is mailed to registered employers approximately 30 days in advance of the due date and is imprinted with the employer's name, address, account number, and contribution rate. These forms should always be used in reporting to facilitate processing and to avoid errors.

Employers who become newly liable during a calendar year must file a separate Quarterly Wage Report and Unemployment Return for each calendar quarter in which wages were paid.

Electronic Funds Transfer

Electronic Funds Transfer (EFT) may be used to pay Kansas unemployment taxes (contributions). The Kansas Department of Labor EFT Program offers the Automated Clearing House Debit (ACH) method only to electronically transfer tax payments. The ACH system is a nationwide network designed for this purpose and is the preferred transaction method for many financial institutions and corporations. The clearing facilities, delivery methods and settlement services operated by the Federal Reserve System are utilized within the network in order to maintain security and increase the efficiency of transactions. For further information, contact the Unemployment Tax Contributions Unit, phone (785) 296-5027 or e-mail.

Electronic Wage Reporting

The Department encourages all employers to submit wages electronically online. This can be done securely on the Kansas Deparment of Labor TABS website using either data entry or file upload. Larger employers or Third Party administrators can also take advantate of our Web service for uploading wage data. For more information please visit http://www.dol.ks.gov/UI/QuarterlyWage/QW.html.

Importance of Timeliness

It is important for the employer to file the Employer's Quarterly Wage Report and Unemployment Tax Return and pay the contribution monies due on time. Otherwise:

Penalty: Failure to file any quarterly wage report and contribution return when due subjects an employer to a penalty of 0.05 percent per month, or fraction thereof, of the total wages paid in the delinquent quarter. However, in no instance will the penalty be less than $25 or greater than $200 per calendar quarter. To avoid this penalty, the employer should file this report timely even though unable to pay the contributions (taxes) due.

Interest: Failure to pay contributions by the due date subjects an employer to an interest charge of 1.0 percent per month, or fraction thereof, until payment is received for all quarters.

Cash Deposit or Bond: Contributing employers which are two quarters delinquent in making payments may be required to post a cash deposit or bond guaranteeing the payment of contributions. If an employer fails to make the deposit or bond, the employer's contribution rate will be increased. A surcharge of 2.0 percent must be paid in addition to the assigned rate; however, the additional surcharge will not be credited to an employer's experience rating account.

Willful Failure to Pay Contributions: Any officer, major stockholder, or other person who has charge of the affairs of an employer which is a corporation or association who willfully fails to pay contributions, payments in lieu of contributions, penalty and interest, shall be personally liable for the total amount due if not paid by the corporation or association.

Penalty for Willful Failure to Pay: Any employer or person who willfully fails or refuses to pay contributions, reimbursing payments, or benefit cost payments shall be liable for the payment of the taxes and shall be liable to pay a penalty equal to the amount of taxes evaded or not paid.

With timely contribution reports and contribution payments, employers easily avoid these measures.

Final Reports

Employers should immediately notify the department when selling all or part of the business or discontinuing business for any reason. All "Quarterly Wage Report and Unemployment Tax Return" and taxes, including penalty and interest, are due within 15 days of selling or closing the business.

If the employer sells all or part of the business, the selling employer must supply the department with the following information concerning the transaction: buyer's name, trade name, address, date of sale, and that portion of the business sold.

If the business is discontinued, the employer must supply the department with the date of closing.

Underreporting/Overreporting Contributions

Under reporting or Over reporting of contributions on the Quarterly Wage Report and Unemployment Tax Return return shall be corrected as soon as possible. Errors on past reports cannot be adjusted on a current report. For each quarterly wage report requiring adjustment, the employer must file form K-CNS 111, Adjustment to Employer's Wage Report.

On this report, the employer shows the wages and contributions originally reported, the wages and contributions which should have been reported, and the difference. In the event of an underpayment of contributions, the additional amounts should be paid promptly. In the event of an overpayment of contributions, a notice of overpayment will be issued. If the employer wishes the overpaid amount refunded, the employer must request such in writing; otherwise, the overpayment will be used to offset future contributions due.

Required Record Keeping

The law requires every employer to maintain certain records for each individual employed. These records must be retained for a period of not less than five years from the due date of contributions for the period to which they relate.

Employment records, as well as all other records of the employer's business, must be available for department inspection upon request. An employer may maintain records in any manner provided they show for each worker:

1. Name and social security account number.
2. State or states in which services were performed.
3. Dates hired and terminated.
4. The amount of wages paid and the period for which paid, showing separately:
1. cash wages, including special payments;
2. reasonable cash value or remuneration in any medium other than cash.
5. Amounts paid as allowances or reimbursement for business expenses.

Audits of Employer Records

In order to insure compliance with the taxing provisions of the law and to promote the employer's knowledge and understanding of their requirements under the law, audits are conducted on employer's records periodically. Audits are usually computer selected at random from a pool of employer accounts. The audit is for a minimum of one calendar year and can be expanded to include the entire five-year period allowed by regulations. The field representative completing the audit is required to inspect and verify information in all disbursement records maintained by the employer. An audit may disclose an underpayment or overpayment of taxes by an employer.

In cases of underpayment, the field representative will collect additional taxes due. In cases involving overpayment, the field representative will assist the employer in applying for a tax refund or credit adjustment.

Prime Contractor's Provision

A provision of the Kansas Employment Security Law places a special responsibility on an employer who is engaged in any type of construction. Under this provision, the subject prime contractor is made responsible for the assurance of payment of unemployment taxes owed by a subcontractor whose services have been engaged by the prime contractor.

The law specifies that the prime contractor must require the subcontractor to provide a good and sufficient bond guaranteeing payment of all taxes, penalty and interest. Failure to comply with the provisions of this section of the law will render the prime contractor directly liable for payment of all unemployment taxes, penalties and interest owed by the subcontractor.

Upon the completion of a contract with the subcontractor, the prime contractor should complete and file form K-CNS 222, Prime Contractor's Release of Liability Application. The department will search its records to determine if the subcontractor has filed and paid the required contributions during the period of the contract. As soon as the subcontractor's compliance is determined, the prime contractor is mailed a completed copy of the release.

Back Pay Award

When an employer is required to pay a back pay award or settlement to a former employee, wages paid under the award or settlement are taxable and must be allocated to the week or weeks specified in the award or agreement. (Absent such specificity in the award or agreement, such wages shall be allocated to the weeks in which they have been paid.) If the employer withholds the amount of unemployment benefits paid to the worker, the employer must remit the withheld amount to the department. If the employer pays the entire back pay award to the worker, a benefit overpayment will be established requiring the worker to repay the department.