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Taxation of Employee Benefits: Kansas

Taxation of Employee Benefits requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Authors: Alan L. Rupe, Aaron Sauerwein, Kutak Rock LLP


  • For unemployment insurance tax purposes, salary deferrals to +IRC § 125 cafeteria plans are not taxable wages, but employer contributions to +IRC § 401(k) plans are taxable wages. For state income tax purposes, employer contributions to both cafeteria plans and § 401(k) plans are taxable wages. See Salary Deferrals to § 125 Cafeteria Plans and § 401(k) Plans.
  • Same-sex marriage is legal in Kansas and the value of health insurance benefits provided to an employee's same-sex spouse is not subject to state income withholding. Civil unions and domestic partnerships are not legal in the state and the value of benefits provided to an employee's same-sex civil union partner or domestic partner is taxable. See Same-Sex Couple Health Insurance Benefits.