Pay Your Kansas Small Business Taxes

As a Kansas small business owner, you already know that paying taxes is an important part of keeping your business legally compliant. But small business taxes can be confusing, even for experienced business owners. They can change depending on where you are, how much money you make, what kind of business entity you operate, and more. Let’s take a closer look at what types of state taxes you might face as a Kansas business owner, how to pay them, when they are due, and how we can help.

Our Worry-Free Compliance Service can help you stay current with your filing obligations to keep you in good standing in Kansas.

If you’re looking for information about federal taxes, head over to our page on federal taxes for small businesses.

Step 1: Establish your Kansas business’s corporate income tax obligations

Nearly all states tax business income derived from business within that state. Kansas is no exception. The Kansas business tax rate your company pays will typically depend upon the type of business entity you operate. In most states, a corporation will be taxed at the state’s corporate income tax rate. However, if you operate your business as a limited liability company (LLC), partnership, S corporation, or sole proprietorship, these are all considered qualified business income deduction and are usually taxed at the state’s personal income tax rate.

Corporations

Kansas corporations are subject to Kansas’s corporate income tax. Corporations in Kansas are charged a flat tax as a percentage of business income. Kansas also charges small businesses a small, flat tax surcharge for any business income over $50,000. 

For example, in a situation where a Kansas corporation earns $500,000, they’d be taxed 4% (the current Kansas corporate tax rate) on $500,000, and an additional 3% surtax (the current Kansas corporate surtax rate) on any income above $50,000.

Pass-through entities

Figuring out your Kansas business tax rate can be difficult, especially for partnerships and LLCs. Pass-through entities like LLCs are taxed at your personal income tax rate in Kansas. The Kansas Department of Revenue can help you clarify what your income tax rate is. Additionally, the Kansas Department of Revenue can help you clarify what documents you need to file for yourself and your business. 

Resources

To help stay on top of when your Kansas small business taxes are due, the Kansas Department of Revenue and the U.S. Small Business Administration offer great resources for small business owners. Note that your personal taxes and business taxes may be due at different times during the year. Sometimes, you may even have to pay quarterly estimated taxes if you’re operating a pass-through entity. 

Even if your Kansas company doesn’t make any money, you may still have to file a “zero return.” This document usually just shows that you’re a Kansas company but you didn’t make any money in Kansas during the taxable time period. Make sure to check with the Kansas Department of Revenue if you have questions about zero returns.

Step 2: Determine your Kansas business’s employment taxes

If you’re a Kansas employer, you’ll also need to consider other business taxes in Kansas, like withholding taxes. As an employer in Kansas, you must file for a withholding tax identification number as soon as you first have employees in Kansas. As the employer, you’re responsible for withholding taxes from your employees’ paychecks. 

Since different rates and situations may apply to married employees versus single employees, it’s best to check with the Kansas Department of Revenue before finalizing your payments. The Department provides an easy guide to employers on its website to help you understand what your withholding tax obligations might be.

Step 3: Establish your Kansas business’s additional state tax obligations

Some states mandate additional tax obligations for business owners, beyond the ordinary income tax and employment tax. Kansas doesn’t require business owners to pay franchise taxes or excise taxes. The lack of this kind of taxation, combined with Kansas’s low income tax rate makes it very business friendly.

Sales tax

Kansas currently charges a 6.5% sales tax, which business owners must pass through to the state. This tax is charged on the following goods and services:

• The retail sale or lease of tangible property
• Services to install, apply, repair, service, alter, or maintain tangible personal property
• Admissions to entertainment, amusement, or recreation places

Business owners ought to be aware that cities and counties in Kansas are free to charge their own sales tax as well. Payment due dates and filing formats may vary. Business owners need to check with their local tax commissioner and the Kansas Department of Revenue to ensure they have the most current information about sales tax rates and payment dates.

Unemployment taxes

Kansas charges employers for unemployment insurance. However, this tax applies only to qualifying employers. If you have the requisite number of employees, then you’ll need to obtain a filing identification number and prepare to pay unemployment taxes. You won’t be liable for this tax. if not 

If you do need to pay unemployment taxes in Kansas, keep in mind that you’ll need to file quarterly tax reports. These are due at the end of the month following the month after the end of each quarter. If you have questions, the Department of Labor has a helpful guide to unemployment taxes for business owners on its website.

Step 4: Prepare to file and pay your Kansas business taxes

The Kansas Department of Revenue is where you’ll go to file your Kansas small business taxes. The Department of Revenue now has an electronic portal where corporations and pass-through entities alike can file their taxes and quarterly estimates online. You’ll need to register through the customer service portal before you can access the filing page. 

Before you finalize your return, it’s important to get your records in order. Some records you may need to file your business taxes in Kansas include:

• Your personal social security number
• Your personal address 
• Business address and public information
• Your business’s employer identification number (EIN)
• Any invoices and sales records from the last year
• Your business’s expense records
• Your personal business expense records
• Any relevant receipts

Keeping track of all your business’s financial matters is key to making things easier at tax time. We can also help you keep track of invoices and manage your business finances with our ZenBusiness Money App.

Do I need an accountant?

As a business owner, you may be thinking, “How can I do all this accounting for myself? I’m not even good at math!” You’re not alone in that thought. Most small businesses need professional accounting help. In fact, nearly all small business owners hire accountants to ensure their taxes are done correctly. 

There may be serious consequences for those who don’t file their Kansas small business taxes. The penalties may be just as severe for those who make erroneous calculations in the fillings they submit. Hiring an accountant may be a great idea to take an administrative hassle off your plate. 

To help you choose a qualified professional to assist you with how to file small business taxes in Kansas, the Internal Revenue Service’s (IRS) website has a helpful guide to understanding tax preparer qualifications. This can help you select a qualified professional to prepare and submit your Kansas small business taxes.

Not sure how to stay compliant? Learn more about legal compliance for small business owners.

How we can help

We’ve been helping small business owners like you navigate business compliance for years. Our ZenBusiness Money App can help you manage invoices and send payments, keeping all your documents in one place for tax time.

If your small business is still in the formation process, our Kansas Kansas LLC Formation Services and Corporation Formation Services can help you get started. We are here to help you no matter where you are in your small business journey.