Taxes and Incentives

Businesses locating within Bourbon County are eligible for several incentive programs which, at the time initial investment, offer direct cost reductions. Some of these programs also reduce annual operating costs. Incentives from the State of Kansas, Bourbon County Commission, and the Communities throughout out Bourbon County. Projects are evaluated individually, and every effort is made to create a package that will assist businesses in expanding or locating within our County. The level of incentives available are based upon several key factors, including but not limited to, the number of jobs created and/or retained, the average wage of those jobs, and the projected future job growth.

All Incentives are subject to negotiating and local and/or state approvals. Incentive information provided is not a guarantee of incentives and does not create an obligation upon the local or state programs.

Financial Incentives

Industrial Revenue Bonds:

Industrial revenue bonds (IRBs) are among the most popular and cost-efficient methods of financing up to 100% of a growing business' land, buildings, and equipment, with the only equity requirement being the cost of bond issuance. IRBs are securities issued by cities and counties to provide the funds for credit-worthy companies to purchase land, to pay for the cost of constructing and equipping new facilities, or for purchasing, remodeling, or expanding existing facilities. Other developmental and financing costs, such as engineering, architectural, legal, and bond underwriting costs, may also be financed from bond proceeds.

A business leases the project facility from the bond issuer, then rent payments are used to pay the principal and interest to the bond holders. When all bonds have been paid, the business may assume title to the project for a nominal price, such as $100. Lease/purchase financing permits the business to take advantage of applicable depreciation guidelines, receive available tax credits, and deduct interest payments as a business expense.

Most bonds are structured over 10-15 years. Principal repayment terms are flexible and can be structured to suit a business' specific cash flow needs. The bonds are usually not callable before the third or fourth year.

Certain projects are eligible for tax exempt financing. When tax exempt IRBs are issued, the interest received by IRB holders is exempt from federal and Kansas income tax, and as a result, the cost of financing the project is below conventional costs. Tax exempt financing is available for manufacturing facilities, as well as for a variety of utility, transportation, and other public infrastructure projects. Up to $10 million of tax-exempt IRBs can be issued to finance office, distribution, manufacturing, and R&D facilities.

Whether a project is financed through tax exempt or taxable IRBs, Kansas law exempts the project from real and personal property taxation for up to 10 years. Issuers can require that all, or a portion of, the abated taxes be made available to local taxing jurisdictions in the form of "payments in lieu of taxes." Nearly every IRB issuer will also provide partial property tax abatements as an additional incentive to companies for locating in the community. The cost of building materials and labor, as well as fixed items of machinery and equipment, is exempt from state and local sales taxes.

Kansas Development Finance Authority

The Kansas Development Finance Authority (KDFA) is authorized to issue bonds, either for a specific activity or on a pooled basis. KDFA may issue bonds for financing capital improvements, industrial enterprises, agribusiness enterprises, educational facilities, health care facilities, and housing developments. It may also issue bonds to finance an interest, such as lease or mortgage, on such facilities. The Authority may also help establish and fund venture capital funds.

Any bonds issued by the Authority and the interest paid thereon, unless specifically declared to be taxable in the authorizing resolution, are exempt from all state, county, and municipal taxes. The exemptions include income, inheritance, and property taxes.

Municipalities

Cities or counties may purchase or construct projects with bond proceeds and lease or sell the project to a company. The bonds may be issued as a "revenue" bond or a "general obligation" bond. General obligation bond issues require a two-thirds public voter approval. Revenue bonds do not require a bond approval election. Municipal IRBs can be issued to provide funds to purchase, construct, expand or improve industrial plants. The bonds can be sold as federal and state tax-exempt, if the project is less than $10 million, and if the company has less than $40 million in outstanding tax-exempt bonds, and the company is a manufacturer. It may be possible to exempt most of the real and personal property tax of bond-financed buildings and machinery if the city or county owns the property and leases it to the company.

Kansas, Infrastructure Financing

Tax Increment Financing

Tax Increment Financing (TIF) is a real estate redevelopment technique, applicable to industrial, commercial, and residential projects. TIF covers the costs of publicly provided project improvements by using the anticipated increases in real estate tax revenues to retire the bonds sold to finance qualifying redevelopment costs.

The advantages of TIF for business include 1) financing of land acquisitions and improvements with tax-free borrowing, thus reducing interest costs, and 2) offering the opportunity to purchase renovated sites and/or buildings at sub-market costs.

Moneys raised through TIF can be used for initiatives selected and administered by local governments, such as land acquisition, land and building cost subsidies, structure rehabilitation, and public improvements.

TIF works for both privately-owned land and publicly owned land to be sold for redevelopment. It is available only if private redevelopment would not occur without public improvements. TIF cannot be used speculatively to prepare a site for development.

Applicable to redevelopment financing as well.

Community Development Block Grant Funds

Eligible small cities and counties may apply for Community Development Block Grant (CDBG) funds for water, sewer, or other infrastructure improvements to assist new or existing companies create or retain jobs. Funds may also be used to provide direct financial assistance to firms for the acquisition of land or buildings, construction or renovation of facilities, purchase of machinery and equipment, infrastructure improvements, and/or working capital. The interest rate is currently set at 3 percent below prime or 4 percent, whichever is greater. The term of the loan is based on the asset being financed - working capital loan is up to 5 years, machinery and equipment is up to 10 years and real property is up to 15 years. For business loans, a match is required of $.50 to every $1 of CDBG funds.

Funds are awarded on a competitive basis, providing low-interest subordinated loans to business or communities for public infrastructure needs. Projects are expected to create or to retain jobs for low and moderate-income persons.

The maximum economic development block grant award is $35,000 per job created or retained. The maximum CDBG grant available is $750,000. At least 51% of the jobs created must meet HUD's low-and moderate-income standard for the county in which the project is located.

CDBG loans are individually structured during negotiations with the company and local and state officials. Local governments receive the grant funds and in turn loan them to the company, with flexible interest rates (from 0% to prime) tailored to the company's needs and cash flow. A low dollar/job creation ratio and complete recapture of grant funds by the community increases the project's funding potential. Loan guarantees and interim financing are also available for economic development projects on an open window basis.

Income Tax Credits

Angel Investor Tax Credits

Tax credits are offered against Kansas income tax liability for accredited investors making investments in seed and early-stage capital financing for emerging Kansas businesses engaged in the development, implementation and commercialization of innovative technologies, products, and agencies.

  • The credit is 50% of the investor’s cash investment in the qualified business.
  • If the amount of credit exceeds the investor’s tax liability in any one taxable year, the remaining portion of the credit may be carried forward until the total amount of the credit is used.
  • The Kansas Department of Revenue will not allow tax credits that are attributable to an individual of more than $50,000 of cash investments in the qualified securities of a single Kansas business for cash investments in the qualified securities of more than five Kansas businesses each year.
High Performance Business Tax Credits

The High-Performance Incentive Program (HPIP) provides tax incentives to employers that pay above-average wages and have a strong commitment to skills development for their workers. This program recognizes the need for Kansas companies to remain competitive and encourages capital investment in facilities, technology and continued employee training and education. A substantial investment tax credit for new capital investment in Kansas and a related sales tax exemption are the primary benefits of this program. As of October 1, 2016, HPIP applications require a non-refundable application fee per worksite location to be submitted with the application. The fee schedule per location is as follows: 1) First time certifications - $750; or 2) Re-certifications - $250; or 3) One page carry-forward only - $0. Note: a 2.5% service fee will be applied to online credit and debit card payments, and a $1.50 service fee will be applied to online ACH payments.

HPIP offers employers four potential benefits:

A 10 percent income tax credit for eligible capital investment that exceeds $50,000 at a company’s facility, with a carry-forward that can be used in any of the next 16 years in which the qualified facility re-qualifies for HPIP.

A sales tax exemption to use in conjunction with the company’s eligible capital investment at its qualified facility.

A training tax credit of up to $50,000.

Priority consideration for access to other business assistance programs.

Participating businesses must be A for-profit company subject to state taxes.

Pay above-average wages (as compared to other similar firms in the same geographical area with matching NAICS codes).

Make a significant investment in eligible employee training; and

Be either a manufacturer or able to document that most of its sales are to Kansas manufacturers and/or out-of-state business or government agencies. A business in any NAICS code can qualify if it is a headquarters or back-office operation of a national or multi-national corporation.

Companies are required to submit a Capital Investment Project Description estimating the scope of anticipated investment before the company commits to any investment on which it expects to claim HPIP investment tax credit.

Child Day Care Assistance Tax Credits

Tax credits are offered against Kansas income tax liability for businesses that pay for or provide childcare services for their employees or that provide facilities and necessary equipment for child daycare services.

During the first-year credit of up to 50% of the amount spent to establish a day care facility for employees' dependent children is allowed. The credit cannot exceed $45,000 per taxpayer during the first year. One or more taxpayers may work together to establish such a facility.

The annual credit available in taxable years after the year of establishment is 30% of the amount expended for annual operation of the facility. The total credit allowed to any taxpayer cannot exceed $30,000 for any tax year.

Kansas Venture Capital and Seed Capital Credits

A credit for a portion of a taxpayer's investment in Kansas Venture Capital, Inc., Sunflower Technology Venture, LP, or a certified private venture capital company or local seed capital pool may be claimed against its Kansas income tax liability. The amount of the credit will be 25% of the total amount of cash investment. The amount of credit exceeding the taxpayer's liability in any one taxable year may be carried forward until the total amount of credit is used.

Community Service Contribution Tax Credits

Any business firm which contributes to a community service organization or governmental entity which engages in the activities of providing community services is allowed a credit against its Kansas income tax liability. "In kind" contributions of property or services may also qualify for the credit. The credit is 50% of the total amount contributed during the taxable year. However, if the approved community service organization is in a rural community as defined by the law, the credit is 70%. If the credit allowed exceeds tax liability, the excess will be refunded. Non-Kansas taxpayers may transfer the credits to others.

Alternative-Fuel Tax Credits

Expenditures for qualified alternative-fueled motor vehicles or for a qualified alternative-fuel fueling station qualifies for income tax credits. Alternatives fuels are defined under Title 42 of the U.S. Code Section 13211 and include fuels that are substantially not petroleum and yield substantial energy security and environmental benefits. For qualified alternative-fuel motor vehicles, the credit is 40% of the conversion or incremental cost, up to the maximum for the vehicle's gross weight (ranging from $2,400 for GVW under 10,000 pounds to $40,000 for GVW over 26,000 pounds). The credit available for a qualified alternative-fuel fueling station is 40% of the total amount expended up to a maximum of $100,000 for each fueling station. The amount of credit which exceeds tax liability may be carried forward to the next three tax years or until used, whichever is earlier.

Other Tax Credit Programs

Kansas offers additional tax credit programs for contributions to a variety of funds and programs. The Historic Preservation Tax Credit is available for the rehabilitation of qualified historic structures. The credit is 25% of qualified expenditures when the total amount of expenditures exceeds $5,000. The Telecommunications Tax Credit is available for specified telecommunications companies. Specified telecommunications companies are those whose primary business is the transmissions of communications in the form of voice, data, signals, or facsimile by wire or fiber optic cables. For all taxable years commencing after Dec. 31, 2000, and with respect to property initially acquired and first placed into service in this state on and after Jan. 1, 2001, there shall be allowed an income tax credit, for an amount equal to the difference between the property tax levied at 33 percent assessment rate and an assessment rate of 25 percent on all taxes actually and timely paid during the appropriate income tax year. Additional Kansas tax credits include the Employer Health Contribution Credit and the Disabled Access Credit.

Job Creation Incentives

Promoting Employment Across Kansas (PEAK)

PEAK offers "qualified" companies relocating operations to Kansas the ability to retain a significant portion of employee withholding taxes. Qualified companies include both new operations in Kansas as well as relocated operations to the state and qualifying business retention projects as well.

Companies locating in a metropolitan county (Douglas, Johnson, Leavenworth, Shawnee or Wyandotte) and hiring at least 10 new employees within two years or locating in a non-metropolitan county and hiring at least five new employees within two years.

High-impact projects that create 100 new jobs within two years can retain up to 95% of payroll withholding tax for up to a period of 10 years. The number of years that the withholding tax can be retained depends on how much the annual median wage of the jobs at the Kansas worksite will exceed the current county median wage and the discretion of the Secretary of the Kansas Department of Commerce.

If the aggregate median wage of the new jobs does not qualify the project for PEAK, the annual average wage of the new jobs can be used. Qualifying through the use of the average wage limits the benefits received.

A PEAK application must be submitted before locating or creating PEAK-eligible jobs in Kansas.

Property Tax Exemptions

Exemption of Property for Economic Development Purposes Counties and cities may exempt from ad valorem taxation all or any portion of the appraised value of all buildings, or added improvements, together with the land upon which such buildings are located, and all associated tangible personal property used exclusively by a business for:

  • Manufacturing articles of commerce.
  • Conducting research and development; or
  • Storing goods or commodities which are sold or traded in interstate commerce.

The property must be associated with a business which is new to a county, and if the property was already in Kansas prior to the exemption, the city or county must make a determination that if not for the exemption, Kansas would have lost jobs. Additions to or expansions of existing buildings qualify for the property tax exemptions, if, as a result of the expansion, new jobs are created.

Total or partial ad valorem tax exemption may be in effect for up to 10 years after the calendar year in which a business commences its operations or an expansion is completed. Any property tax abatement is the decision of the city or county.

Machinery & Equipment Personal Property Tax Exemption

Commercial and industrial machinery and equipment acquired by qualified purchase or lease, or transferred into the state, is exempt from state and local property tax. This exemption pertains to machinery and equipment used in the expansion of an existing facility or the establishment of a new facility. The exemption covers machinery and equipment used in manufacturing or warehousing/distribution, commercial equipment, computer, desks and chairs, copiers and fax machines.

Businesses Using Industrial Revenue Bonds

Property financed with Industrial Revenue Bonds (IRBs) is exempt from ad valorem taxation for up to 10 years after the bonds are issued. However, localities may elect to negotiate "payments in lieu of taxes."

Inventory Exemption
All merchants' and manufacturers' inventories are exempt from property taxes by constitutional amendment.

Intangible Property

Intangible property taxes are local taxes levied by counties, cities, and townships. The law permits a tax of 3% or less on the income derived from intangible property. However, counties, cities, and townships have the option of reducing or eliminating the tax. The six Kansas counties in the metropolitan area have eliminated their shares of the tax, and most cities in those counties have eliminated all or part of the tax.

Sales and Use Tax Exemptions

The Kansas state sales and use tax rates is 6.5%. However, there are several sales tax exemptions available which include:

  • Labor services related to original construction
  • Remodeling costs, furnishings, furniture, machinery and equipment for qualified projects
  • New machinery and equipment for manufacturing and distribution. This also includes pre- and post-production machinery and equipment, including raw material handling, waste storage, water purification and oil cleaning, as well as ancillary property such as gas pipes, electrical wiring and pollution control equipment.
  • Tangible personal property that becomes an ingredient or component part of a finished product
  • Tangible personal property that is immediately consumed in the production process, including electric power, natural gas and water
  • Incoming and outgoing interstate telephone or transmission services (WATTS)
  • Real and personal property financed with an Industrial Revenue Bond
Training Programs

The state of Kansas has two workforce training programs to offset a company's training costs:

  • Kansas Industrial Training (KIT)
  • Kansas Industrial Retraining (KIR)

Companies creating new jobs may quality for Kansas Industrial Training (KIT) assistance. Eligibility for the program depends on the number of jobs created and the corresponding wages. The state of Kansas also has the Kansas Industrial Retraining (KIR) program to retain a Kansas company's existing workforce on new technology or production activities. Projects involving a Kansas Basic Industry—which includes manufacturing, distribution or regional/national service facilities—may qualify for these programs.

Both of these programs offer direct financial assistance to pay a negotiated portion of the costs to train a company's employees. Companies may apply the assistance toward items such as instructors' salaries; meals, travel and lodging (including out-of-state or international travel); video development; textbooks and training manuals; supplies and materials; temporary training facilities and curriculum planning and development.

Utility Incentives

Utility companies serving Bourbon County offer financial incentives to qualifying customers. These economic development riders and business incentive plans are designed to encourage industrial and commercial development by providing additional start-up cost savings to large users of natural gas and electricity. Incentives are also available for smaller users in the urban core.

Qualifications are based on load requirements and/or demand levels of the customer's utility usage. Utilities on both sides of the state line may offer qualified customers a five-year decreasing (or potential increasing) discounts schedule equivalent to, or nearly equivalent to, one free year of service. Cost saving estimates and information on the incentive programs are available to qualifying customers from the specific utility company and/or the Kansas City Area Development Council.

Taxes

Business Formation Fees

Kansas files several types of business fees and attaches a different filing fee for each formation document. For example, there is a $85-$90 filing fee for domestic for-profit corporations and a $115 filing fee for foreign (non-Kansas) corporations. Each year business entities are required to file an annual report and pay a filing fee. The articles of formation may be amended by filing the appropriate amendment document with a filing fee. Many business filings may be completed electronically. Please visit the Business Filing Center. Paper forms are available in the Filings & Forms section of the web site.

Corporate Franchise Taxes

The State of Kansas has no corporate franchise

Corporate Income Taxes

The determination of taxable income begins with net taxable income reported for federal income tax purposes. 4% of net taxable income. In addition, income in excess of $50,000 is subject to a 3.0% surtax.

Kansas corporate taxable income is defined as federal taxable income with numerous state adjustments. Kansas does not allow a deduction for federal or state income taxes.

The rate of tax is 4% of net taxable income. In addition, a 3% surtax is imposed on income in excess of $50,000. A corporation must make quarterly estimated tax payments if its Kansas income tax liability can reasonably be expected to exceed $500.

For those corporations having facilities both inside and outside Kansas, the net income attributed to the Kansas operation is based upon the percentage of the corporation's business located in Kansas. A business's tax obligation is determined by a three-factor formula that considers the proportion of sales, property, and dollar payroll attributable to the Kansas facility.

Corporations may opt for a two-factor (sales and property) apportionment formula to calculate tax liability if the payroll factor for a taxable year exceeds 200% of the average of the property and sales factors. Also, the state allows net operating losses to be carried forward for each of the 9 years following the tax year of the net operating loss.

Investment funds service companies headquartered in Kansas and employing 100 individuals on a full-time basis are taxed only on their income earned from the administration of funds of Kansas residents.

Alternative accounting methods can be approved by the Secretary of Revenue to effect an equitable allocation and apportionment of a taxpayer's income.

Job creation and investment tax credits are available state-wide to businesses which create new jobs and investment, by locating, expanding, or renovating within the state of Kansas.

Visit the Kansas Department of Revenue for more information, 2020.

Individual Income Taxes

Effective Tax Year 2019, the tax rate for individual taxpayers ranges from 3.1% to 5.7% based on the table below. The tax rate for joint returns ranges from 3.1% to 5.7%.

Rates for individuals

If taxable income is:

The tax rate is:

$2,500 - $15,000

3.1%

$15,001 - $30,000

5.25% plus $465.00

$30,001 and over

5.7% plus $1,252.50

Rates for joint returns

If taxable income is:

The tax rate is:

$5,000 - $30,000

3.1%

$30,001 - $60,000

5.25% plus $930.00

$60,001 and over

5.7% plus $2,505.00

Kansas taxable income is reduced by the amounts of various standard and itemized deductions. The standard deduction amount for single head-of-household filers is $5,500 and married taxpayers filing jointly is $7,500.

Visit the Kansas Department of Revenue for more information, 2020.

City Earnings Taxes

No communities within Bourbon County impose an earnings tax.

Property Taxes

A variety of services are offered by local municipalities, which must be carefully considered in conjunction with property tax rates. Throughout the metropolitan area, there are numerous taxing authorities for services such as schools, junior colleges, fire prevention, sewer and water, drainage, and hospitals. All these taxing authorities may impose levies in any given community; thus, tax rates will vary for every municipality.

The local property tax rate is an aggregate of state, county, city, school, and other district levies expressed as tax per $1,000 of assessed valuation. All real property is subject to ad valorem taxation unless expressly exempt. Examples of exemptions are:

  • Merchants’ and manufacturers’ inventories.
  • Personal property moving through the state or consigned to a warehouse in Kansas from a point outside Kansas in transit to a final destination outside Kansas.
  • Real and tangible personal property used exclusively for literary, educational, scientific, religious, or charitable purposes.
  • Aircraft used predominantly in the conduct of business.

The Department of Revenue's Division of Property Valuation is the state agency exercising general supervision over ad-valorem policies and procedures in Kansas.

Assessment Ratios
  • Commercial and industrial real property is assessed at 25% of fair market value.
  • Residential property is assessed at 11.5% of fair market value.
  • Real property owned and operated by not-for-profit organizations and vacant lots are assessed at 12% of fair market value.
  • Agricultural land, mineral leasehold interests, and motor vehicles are assessed at 30% of fair market value.
  • Public utility real and personal property is assessed at 33% of fair market value.
Real Property

Most real property is appraised at its fair market value with the exception of agricultural land. Property is assessed by the county appraiser in the taxing district in which the property is located.

Tangible Personal Property

Commercial and industrial machinery and equipment acquired by qualified purchase or lease, or transferred into the state, is exempt from state and local property tax. This exemption pertains to machinery and equipment used in the expansion of an existing facility or the establishment of a new facility. The exemption covers machinery and equipment used in manufacturing or warehousing/distribution, commercial equipment, computer, desks and chairs, copiers and fax machines.

Intangible Personal Property

Kansas law permits the imposition of a 3% or less intangible personal property tax on the income derived from all money, securities, credits, notes or other evidence of indebtedness. Counties, cities, and townships have the option of reducing or eliminating the tax. The six Kansas counties in the metropolitan area have eliminated their shares of the tax, and most cities in those counties have eliminated all or part of the tax.

Non-Business Personal Property

The county appraiser has the responsibility to value watercraft and trailers at market value and is assessed at 30%. Taxes on autos, light and medium trucks and motorcycles are due at the time of registration and the value is depreciated 15% per year of the manufacturer's suggested retail price.

Sales and Use Tax

Sales tax is applicable on all sales made from a location within a state. Use tax applies to property for use, storage, or consumption that was purchased from an out-of-state vendor.

The sales tax is the total of state and local rates and is applied to all retail purchases plus taxable services sold at retail to the consumer. Kansas levies 6.5% sales and use tax. If applicable, an additional levy may be imposed by the city or county in an amount that will vary.

If the sale or use of property has already been subject to a tax of less than 6.3% by any state, then the tax is the difference between 6.3% and the tax that has already been imposed.

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 2019, positive balance employers pay between 1% and 2.7%. Negative balance employers pay between 5.6% and 7.6% (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 $14,000 in wages paid annually to each employee.

If an employer already has a facility in Kansas and has established an experience rating, the employer will have the same tax rate for any new facility built in Kansas. New companies locating in the state receive an entry rate based on the type of business. After three years, when original liability is established before July 1, the employer may have a tax rate computed with experience rate factors. When liability is established after June 30, the employer may have a computed rate after four years. Employers who are not eligible for a rate computation shall pay contributions at the rate of 2.7 percent, except for employers in the construction industry, who will pay at the rate of six percent.

The maximum weekly benefit cap is the greater of either $474 or 55.0% of the average weekly wages paid to employees in insured work during the previous calendar year for up to 16 weeks. 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.

Workers Compensation

Workers’ compensation provides benefits to injured employees for accidents or occupational diseases arising out of, and in the course of, their employment. Compensation coverage is available through private insurance carriers licensed by the state, but self-insurance is allowed in both states with approval from the states’ Division of Workers’ Compensation.

Costs vary for individual businesses and are dependent upon type of employment (occupational risk), estimated annual remuneration, and the company’s loss experience.

In line with the Workers' Compensation Act, an employer in a non-agricultural business, with more than $20,000 in non-family payroll, must secure worker's compensation benefits for its employees. Employers may secure workers' compensation insurance for their employees by 1) obtaining insurance from authorized private insurance companies, 2) becoming self-insured, or 3) becoming a member of a qualified group-funded workers’ compensation insurance pool.

Premiums are determined by applying the rate for a specific occupation, per $100 of payroll, to the annual wage per employee.

Temporary total and permanent partial payments to injured workers are based on 66.67% of a worker’s gross weekly wage, not to exceed $687 per week as of July 1, 2020. Benefits are also available in the cases of permanent total disability or for surviving spouse, dependents and heirs of an employee whose injury resulted in death. Workers' compensation premium rates in Kansas are seventh lowest in the nation.

The state’s administrative costs for workers’ compensation and maintenance of the Workers’ Compensation Fund balance are funded by assessments on the paid losses of insurance companies, group pools, and the self-insured. The most recent assessment rate for administrative costs was 2.79% and the assessment for the Workers’ Compensation Fund was assessed at 0.75%. These rates are set annually based on the previous calendar year’s paid losses and the amounts required for administration and adequate Fund balance.

Visit the Kansas Department of Labor for more information.