Kansas 2023-2024 Regular Session

Kansas House Bill HB2420 Compare Versions

Only one version of the bill is available at this time.

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1	1	Session of 2023
2	2	HOUSE BILL No. 2420
3	3	By Committee on Taxation
4	4	2-15
5	5	AN ACT concerning income taxation; relating to withholding taxes;
6	6	establishing withholding requirements for certain employees who work
7	7	in multiple states.
8	8	Be it enacted by the Legislature of the State of Kansas:
9	9	Section 1. (a) As used in this section:
10	10	(1) "Certain public figures" means persons of prominence who
11	11	perform services for wages or other remuneration on a per-event basis,
12	12	provided that the wages or other remuneration are paid to such person for
13	13	services provided at a discrete event, in the nature of a speech, public
14	14	appearance or similar event.
15	15	(2) "Employee" means the same as defined in K.S.A. 79-3295, and
16	16	amendments thereto, except that the term ''employee'' does not include a
17	17	professional athlete, professional entertainer, qualified production
18	18	employee or certain public figures.
19	19	(3) "Employer" means the same as defined in K.S.A. 79-3295, and
20	20	amendments thereto.
21	21	(4) "Professional athlete" means a person who performs services in a
22	22	professional athletic event, provided that the wages or other remuneration
23	23	are paid to such person for performing services in the person's capacity as
24	24	a professional athlete.
25	25	(5) "Professional entertainer" means a person of prominence who
26	26	performs services in the professional performing arts for wages or other
27	27	remuneration on a per-event basis, provided that the wages or other
28	28	remuneration are paid to such person for performing services in the
29	29	person's capacity as a professional entertainer.
30	30	(6) "Qualified production employee" means a person who performs
31	31	production services of any nature directly in connection with a qualified,
32	32	certified or approved film, television or other commercial video
33	33	production for wages or other remuneration, provided that the wages or
34	34	other remuneration paid to such person are qualified production costs or
35	35	expenditures under such qualified, certified or approved film incentive
36	36	program and that such wages or other remuneration must be subject to
37	37	withholding under such film incentive program as a condition to treating
38	38	such wages or other remuneration as a qualified production cost or
39	39	expenditure.
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76	76	(7) "Time and attendance system" means a system in which:
77	77	(A) The employee is required on a contemporaneous basis to record
78	78	such employee's work location for every day worked outside of the state in
79	79	which the employee's employment duties are primarily performed; and
80	80	(B) the system is designed to allow the employer to allocate the
81	81	employee's wages or other remuneration for income tax purposes among
82	82	all states in which the employee performs employment duties for such
83	83	employer.
84	84	(8) "Wages or other remuneration" includes wages and payment other
85	85	than wages as such terms are defined in K.S.A. 79-3295, and amendments
86	86	thereto.
87	87	(b) (1) No part of the wages or other remuneration earned by the
88	88	employee who performs employment duties in more than one state shall be
89	89	subject to income tax in any state other than:
90	90	(A) The state of the employee's residence; or
91	91	(B) the state that the employee is present and performing employment
92	92	duties for more than 30 days during the calendar year that the wages or
93	93	other remuneration is earned and the nonresident employee's state of
94	94	residence:
95	95	(i) Provides a substantially similar exclusion; or
96	96	(ii) does not impose an individual income tax.
97	97	(2) No part of the wages or other remuneration earned by the
98	98	employee shall include income that is exempt from taxation by the state of
99	99	Kansas pursuant to the United States constitution or other federal law.
100	100	(c) Wages or other remuneration earned in any calendar year shall not
101	101	be subject to Kansas income tax withholding and reporting requirements
102	102	unless the employee is subject to income tax in Kansas pursuant to
103	103	subsection (b). Income tax withholding and reporting requirements under
104	104	subsection (b)(2) shall apply to wages or other remuneration earned as of
105	105	the commencement date of employment duties in the state during the
106	106	calendar year.
107	107	(d) Except as provided in subsection (b), an employee is considered
108	108	present and performing employment duties within a state for a day if the
109	109	employee performs more of the employee's employment duties within such
110	110	state than in any other state during a day.
111	111	(e) If an employee performs employment duties in Kansas and in only
112	112	one nonresident state during one day, such employee shall be considered to
113	113	have performed more of the employee's employment duties in the
114	114	nonresident state than in Kansas on such day.
115	115	(f) For purposes of this section, the portion of the day during which
116	116	the employee is in transit shall not be considered in determining the
117	117	location of an employee's performance of employment duties.
118	118	(g) For purposes of determining penalties related to an employer's
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162	162	income tax withholding and reporting requirements:
163	163	(1) An employer may rely on an employee's annual determination of
164	164	the time expected to be spent by such employee in the states in which the
165	165	employee will perform duties absent:
166	166	(A) The employer's actual knowledge of fraud by the employee in
167	167	making the determination; or
168	168	(B) collusion between the employer and the employee to evade the
169	169	tax;
170	170	(2) except as provided in paragraph (3), if records are maintained by
171	171	an employer in the regular course of business that record the location of an
172	172	employee, such records shall not preclude an employer's ability to rely on
173	173	an employee's determination under paragraph (1); and
174	174	(3) notwithstanding paragraph (2), if an employer, at its sole
175	175	discretion, maintains a time and attendance system that tracks where the
176	176	employee performs duties on a daily basis, data from the time and
177	177	attendance system shall be used instead of the employee's determination
178	178	under paragraph (1).
179	179	(h) This section shall be a part of and supplemental to the Kansas
180	180	withholding and declaration of estimated tax act.
181	181	Sec. 2. This act shall take effect and be in force from and after its
182	182	publication in the statute book.
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