Out-of-State Income Tax Withholding

The University of Kansas strives to adhere to the taxation rules and regulations of each state, county, and local jurisdiction where an employee performs work for the University. Income tax will be withheld from employee pay and employees will be taxed according to the state and employment law and benefit provisions for the city and state designated as the primary work location.

Employee Responsibilities

1. To ensure proper income tax withholdings whenever there is a change in primary work location, the employee must immediately update their address in KUL HR/Pay or work with KUMC Human Resources (HR) to update their work location within Workday. As established by the State of Kansas, adjustments to prior payments for state, county, or local tax withholdings are not allowed and will not be processed.
2. Income tax withholding changes will be applied to the next available pay cycle after the KUL Payroll Office receives completed income tax withholding forms or after updates are completed within KUMC Workday. 
3. If an employee was taxed incorrectly, it is the employee’s personal responsibility to file their individual tax forms based on the income tax withholding reported on their State of Kansas tax form (i.e., W-2, 1042-S, W-2C).
4.  The employee is responsible for any penalties, interest, or fines they may be assessed for incorrect income tax withholding.
5. Employees have a fiduciary responsibility to review their paystub and advise the University if they believe they are in error.

Unit Responsibilities

1. At initial hire or when an employee’s primary work location changes outside of the State of Kansas, University units (supervisor or assigned staff) are responsible for educating the employee of their responsibility for completing and submitting all applicable income tax withholding forms to the KUL or KUMC Payroll Office.
2. Units and employees are responsible for following the KUL Remote Work Policy or KUMC Remote Work Policy, as applicable, and securing approvals in advance before remote work can begin.
3. If an audit finding determines a unit had knowledge of an employee working outside the State of Kansas and appropriate income tax withholding forms were not submitted, which resulted in incorrect tax remittance and fines to the University or State of Kansas, the unit may be financially liable.

Payroll Office Responsibilities

1. The KUL and KUMC Payroll Offices are responsible for overseeing timely, accurate payroll calculation, including accurate income tax withholdings based upon income tax withholding forms received, on a predetermined schedule created by the State of Kansas.
2. The KUL and KUMC Payroll Offices are responsible for communicating and educating employees and their supervisors regarding the requirements of correct income tax reporting requirements based on the primary work and home location.