Kansas and Indiana Reductions for 2010
In the state of Kansas Governor Parkinson recently signed House Bill 2676 that lowered
unemployment insurance tax rates and provided additional time to submit their tax
In the state of Indiana; Governor Mitch Daniels recently signed Senate Bill 23 that
postpones scheduled unemployment tax changes to take effect on January 1, 2011, rather
than January 1, 2010.
What Employers Need to Know
Kansas HB 2676 sets tax rates for 2010 and 2011. The Kansas agency immediately mailed
revised 2010 rate notices to the employers impacted by the bill which was signed by
Governor Parkinson on March 24, 2010.
In addition, all employers are given an additional 90 days in which to make their
contribution payments for the first three quarters of 2010 and 2011 without accruing
interest. However if the payments are not made within that 90-day window, interest
will be assessed from the original due date.
The 90-day grace period provided to all employers does not apply to submission of
the quarterly wage report, only to the payment of UI tax contributions. Quarterly
wage reports are still due the last day of the month following quarter end. Reports
submitted past the due date are subject to a penalty.
Indiana SB 23 postpones from January 1, 2010 to January 1, 2011 the increase in the
taxable wage base from $7,000 to $9,500. In addition, it postpones the increase in
the maximum rate from 5.6% to 12.0% and decreases the rate for certain employers,
from 2.7% to 2.5%. Changes to the fund ratio and rate schedules were also delayed
to take effect in 2011 rather than in 2010.
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