State & Local Tax Impacts of COVID-19 for Kansas – 2021

Thoughtware Alert Published: May 03, 2021 | Updated: Aug 20, 2021
SALT GOV COVID TW - 1

Information current as of July 31, 2021.

COVID-19 has changed life across the globe. Many taxing jurisdictions are taking mitigating actions to create social distance and aid taxpayers. The following is a running list of actions by jurisdiction, which generally result in additional time to file and/or pay. Further, many jurisdictions have closed their offices to in-person use by taxpayers and suspended their audit and administrative functions. This alert doesn’t cover similar waivers from local-level taxing authorities. These developments continue to quickly evolve; check with your BKD Trusted Advisor or visit our COVID-19 Resource Center for current information as needed.

Information Specific to Kansas

  • Kansas extended temporary relief from certain motor carrier rules and regulations due to COVID-19, including 1) extending the temporary suspension of registration and fuel tax permit requirements, as enforced by the DOR, for motor carriers and persons operating commercial vehicles actively participating in the COVID-19 relief or restoration efforts; 2) providing that certain licensing, certification, permitting, vehicle weight rules, and regulations are modified or suspended; 3) waiving fees associated with overdimension and overweight permits; and 4) clarifying the order supersedes any contrary order by any local health department for motor carriers and is read in conjunction with previous executive orders. The order took effect on December 31, 2020, and will remain in force until rescinded, either on February 28 or when the statewide COVID-19 emergency extended by 2020 H.B. 2016 expires, whichever is earlier. 
    • Governor’s Executive Order 20-72; December 31, 2020.
  • Kansas issued guidance on tax reporting for teleworking employees. For the period of March 13, 2020, through December 31, 2020, inclusive, for wages paid to employees who are temporarily teleworking in a state other than their primary work location, employers have the option to continue to withhold income taxes based on the state of the employee’s primary work location, rather than the withholding being based on the state in which the employee is teleworking or otherwise working during the pandemic. Any provisions of Kan. Stat. Ann. Section 79-3296 that are in conflict with this are suspended. On and after January 1, 2021, employers must comply with the statute and make all necessary adjustments to withhold from wages whenever the wage recipient is a Kansas resident or the wages are paid on account of a personal service performed in Kansas. The governor’s executive order stipulates that, other than as provided, the order doesn’t affect any other laws, regulations, or rules relating to the filing requirements of Kan. Stat. Ann. §79-3201 (Kansas Income Tax Act) or Kan. Stat. Ann. §79-3294 (Kansas Withholding and Declaration of Estimated Tax Act). The order will be in force until the earlier of its rescission or the expiration of the statewide state of disaster emergency. 
    • Governor’s Executive Order 21-01; January 26, 2021.
  • Kansas further extended a number of executive orders already in place until rescinded or until the statewide state of disaster emergency expires (whichever is earlier), including Executive Order 20-37, which allows certain deferred tax deadlines and payments during the state of disaster emergency. Senate Bill 14 extended the state of disaster emergency until March 31, 2021.
    • Governor’s Executive Order 21-02; January 26, 2021.
  • Kansas legislation extends or revokes special COVID-19 unemployment insurance relief provisions. Executive Order #20-43 regarding temporary relief from certain restrictions on shared work programs during the state of disaster emergency originally set to expire on January 26, 2021, is now extended to the earlier of March 31, 2021, or when it’s rescinded. The provision in K.S.A. 44-757(d)(8) that prohibits negative-account contributing employers from participating in the Kansas shared work plan is suspended for the limited purpose of allowing these employers and their employees to participate in the short-time compensation program under §2108 of the Coronavirus Aid, Relief, and Economic Security Act. As of June 30, 2020, Executive Order #20-50 temporarily waived the requirement that claimants for unemployment benefits actively seek work each week as provided in K.S.A. 44-705(c) and K.S.A. 44-704b(b), has expired on January 26, 2021, and won’t be extended. Executive Order #20-71, which temporarily waives the waiting-week requirement for unemployment benefits for all claimants, provided for in K.S.A. 44-705(d), is extended until otherwise rescinded (originally set to expire January 10, 2021).
    • Kansas S.B. 14, effective January 25, 2021.
  • Kansas announced the due dates for 2020 individual income tax and fiduciary income tax returns have been extended to May 17, 2021, which brings the state in sync with the IRS’ tax filing and payment deadline extensions. The deadline for fiscal year fiduciary income tax return filers is normally the 15th day of the fourth month following the end of the tax year, and this also is extended to May 17, 2021. No special forms will be required to benefit from the extensions. Further, the due date(s) for Kansas individual estimated tax payments hasn't been changed.
    • Kansas Revenue Department, Public Notice No. 21-01; March 19, 2021.
  • Kansas announced that for the period of March 13, 2020, through December 31, 2020, inclusive, for wages paid to employees who are temporarily teleworking in a state other than their primary work location, employers have the option to continue to withhold income taxes based on the state of the employee’s primary work location, rather than the withholding being based on the state in which the employee is teleworking or otherwise working during the pandemic. Any provisions of Kan. Stat. Ann. §79-3296 that are in conflict with this are suspended. On and after January 1, 2021, employers must comply with Kan. Stat. Ann. §79-3296 and make all necessary adjustments to withhold from wages whenever the wage recipient is a Kansas resident or the wages are paid on account of a personal service performed in Kansas.
    • Governor’s Executive Order 21-18, effective April 1, 2021, and in force until the earlier of its rescission or the expiration of the statewide state of disaster emergency extended by Section 5 of L. 2021, S40, and as extended by any subsequent enactment or resolution.
    • Governor’s Executive Order 21-23, rescinds Executive Order 21-18 effective June 15, 2021.
  • Kansas legislation allows employers to elect to continue to withhold income taxes based on the state of the employee’s primary work location and not based on the state in which the employee is teleworking or otherwise working during the COVID-19 pandemic. This election is available for the period of January 1, 2021, through December 31, 2022, for wages paid to employees who are temporarily teleworking in a state other than their primary work location.
    • Kansas S.B. 47, effective May 17, 2021.
    • Kansas DOR Notice 21-3, July 19, 2021.
  • Kansas legislation provides for property tax reimbursements for businesses shut down or restricted due to the COVID-19 pandemic, applicable on and after January 1, 2022. The law allows owners of a building maintaining businesses on a property shut down or restricted by the state due to COVID-19 to apply for a 100 percent reimbursement of the tax.  
    • Kansas H.B. 2313, enacted May 24, 2021.

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