What Is The Employer Contribution Rate?

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What Is The Employer Contribution Rate?

A newly liable employer is assigned the larger tax rate determined by alternative methods. The tax rate may be the average rate assigned to all employers plus one percent. Or the rate may be the average rate for employers in a comparable industry plus one percent. The tax rate can not be lower than two percent. After three years, when original liability is established before July 1st, the employer will have a tax rate computed with experience rate factors.

Experience rating is a procedure for varying employer rates and allocating costs of the unemployment insurance program in relation to the employer's actual and potential risk with unemployment. This is accomplished by the department keeping an individual experience rating account for each liable employer. All tax payments are added and all benefit charges are subtracted from the experience rating account. This provides an opportunity for contributing employers to "earn" a tax rate based on their own individual experience and their potential risk of unemployment. The procedure also helps to ensure an adequate trust fund balance.

Contributions are determined by multiplying a specified contribution rate times a taxable payroll determined on an $8,000 wage base earned by each employee during a calendar year.

Other Kansas Labor and Employment FAQs

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A: Every employing unit that begins business operations in Kansas is required to file form KCNS 010, Status Determination Report, within 15 days of the date of … More
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A: All employers are provided form KCNS 100, Employer's Quarterly Wage Report and Contribution Return. This report is due on the last day of the month following the … More
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A: The new hire law requires employers to report, within 20 days of hire, each new hire, rehire, or employee returning to work. The employer must report the following: … More
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A: Employers with workers in several states may elect to report them to a single state. Multistate employers who elect to report to a single state must: report all … More
Q: Where Can I Get More Information On The New Hire Program?
A: For more information about the New Hire Directory call tollfree, (888) 2197801, or in Topeka, call 2961716. More
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A: Yes, Kansas is an employment at will state. This means your employer can fire you at any time, for any reason other than your race, color, religion, national origin, … More