Employer Liability

Which Employing Units Are Liable?

All employers doing business in Kansas are subject to the provisions of the Employment Security Act. However, not all are subject to the taxing provisions of the law. Coverage is determined by the type and nature of the business, the number of workers employed and the amount of wages paid for employment.

Every employing unit that begins business operations in Kansas is required to file form K-CNS 010, Status Report, within 15 days of hiring its first employee. Upon receipt of the completed form, a determination of employer liability will be made by the agency and the employer notified.

You are automatically liable for coverage if:

  • You acquire all, or substantially all, of the employing enterprises, organizations, trade or business, or substantially all of the assets of another employer subject to the Employment Security Act.
  • You acquire less than 100 percent of an employer's annual payroll when the partial successor employing unit is controlled substantially by the same interests as the predecessor employer and intends to continue the acquired portion as an ongoing business.
  • You are liable to the federal government for Federal Unemployment Tax (FUTA).
  • You are a state or local governmental organization or an instrument of a state or local government or an Indian tribe.

You will establish liability for coverage if:

  • Your employment is in a business other than agricultural, domestic or certain qualifying nonprofit organizations, and you have one or more employees who work for any portion of a day in 20 different weeks in a calendar year; or if your gross payroll for any calendar quarter is $1,500 or more; or if you elect to have an account established at initial registration.
  • Your employment is agricultural, and you employ 10 or more workers in any portion of 20 different weeks in a calendar year, or have a payroll of $20,000 or more cash wages in any one calendar quarter.
  • Your employment is domestic service performed in a private home, local college club, fraternity or sorority, and you have a quarterly payroll of $1,000 or more cash wages in any one calendar year.
  • You qualify as a nonprofit organization for unemployment insurance purposes - you must have been issued a 501(c)(3) exemption letter by the Internal Revenue Service and employ four or more workers in any portion of 20 different weeks in a calendar year.
  • Your employment follows a period of less than three years' inactivity in which your previously established unemployment insurance account was never officially terminated.
  • You are not otherwise subject to the taxing provisions of the law and you voluntarily elect to become a covered employer for a period of not less than two calendar years.

Period of Liability

If you meet liability requirements at any time during a year, you must file a Quarterly Wage Report and Unemployment Tax Return (See Section VII) for all quarters of that year in which you had any employment. A quarterly wage report must be filed each quarter thereafter.