Kansas Payroll Tax Payment Plan Options Checklist
Introduction
Kansas employers are required to withhold payroll taxes from employee wages and remit those amounts to the state on a recurring schedule. These obligations include withholding tax tied to
Kansas Income Tax and other state-administered payroll-related liabilities.
When payroll tax payments are missed, the Kansas Department of Revenue may allow eligible taxpayers to request payment plans rather than require immediate full payment—understanding how payment arrangements work helps businesses manage tax debt while reducing the risk of civil tax enforcement.
What This Issue Means
A Kansas payroll tax payment plan is a formal agreement that allows unpaid payroll tax liability to be paid through periodic payment installments. The deal outlines payment amounts, due dates, and the total duration of the plan approved by the Department of Revenue.
Entering a payment plan does not eliminate tax liability or reduce the amount owed. Interest continues to accrue on unpaid balances, and compliance with all future tax obligations remains mandatory.
Why the State Issued This or Requires This
The Kansas Department of Revenue offers payment plans as part of its tax enforcement and collection framework. These plans provide a structured alternative when immediate payment would create financial hardship or threaten business operations.
From the state’s perspective, payment arrangements improve collection outcomes by maintaining taxpayer compliance. Allowing installment payments helps preserve financial stability while ensuring tax payments are eventually collected.
What Happens If This Is Ignored
If the unpaid payroll tax liability is not addressed through payment plans or direct payment, the state may escalate collection efforts. These actions may include tax warrants, tax liens on real or personal property, wage garnishments, and asset seizures.
Continued noncompliance may also place the taxpayer on the tax warrant list, triggering civil tax enforcement through district court filings. Interest continues to accrue on unpaid balances, increasing overall tax debt.
What This Does NOT Mean
Requesting a payment plan does not mean Kansas tax debt has been forgiven or settled for less than the amount owed. Payment plans restructure how tax payments are made but do not reduce principal liability.
A payment plan is also not the same as Kansas tax relief programs, such as a Petition for
Abatement. Failure to follow the agreed plan terms may still result in tax enforcement actions.
Checklist: Kansas Payroll Tax Payment Plan Options
Step 1: Identify the exact payroll tax liability
All notices from the Kansas Department of Revenue should be reviewed carefully to determine the total tax liability. This includes withholding tax, penalties, interest rate calculations, and applicable tax year details.
Step 2: Confirm affected tax types and periods
The taxpayer should identify whether the liability involves Kansas Business taxes, individual income tax, or withholding tax obligations. Verifying periods helps prevent errors when submitting a payment plan request.
Step 3: Contact the Kansas Department of Revenue
Communication should be initiated through the Customer Service Center or the Collections
Department. The taxpayer should document representative names, dates, and guidance provided.
Step 4: Ask about payment plan eligibility
The Department of Revenue can explain available payment plans, minimum periodic payment amounts, and the duration of each plan. The taxpayer should confirm whether a filing fee or an administration fee applies.
Step 5: Understand tax warrant filing requirements
Kansas requires tax warrants to be filed for longer payment arrangements. Business plans exceeding six months and individual plans exceeding twelve months result in a tax warrant filing with the district court.
Step 6: Gather financial documentation
Financial records should include income, expenses, outstanding tax debt, and existing payment obligations. Bank routing number, business tax identification number, and Social Security numbers may be required.
Step 7: Complete the appropriate payment plan form
Businesses typically use Form CM-16, while individuals use Form CM-15. All sections must be completed accurately to avoid processing delays.
Step 8: Submit the payment plan request
Requests may be submitted by mail, email, or fax to the appropriate Department of Revenue office. Copies of all submissions should be retained for the records.
Step 9: Respond promptly to follow-up requests
The department may request additional information before approval. Delayed responses can result in denial or escalation of tax enforcement.
Step 10: Review the proposed agreement carefully
The taxpayer should verify monthly amounts, payment schedule, included tax liability, and administration fees. Written confirmation should be received before making payments.
Step 11: Confirm payment methods and due dates
Payments may be made online by electronic payment, by credit card, or by certified funds.
Kansas WebFile and the Kansas Payment Center support multiple electronic options.
Step 12: Make the first payment on time
The first payment must be submitted by the due date listed in the agreement. Late fees may void the plan and trigger immediate collection action.
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
Step 13: Maintain compliance during the plan
All future Kansas tax obligations must be paid on time. New tax debt may cancel the payment arrangement.
What Happens After This Is Completed
Once a payment plan is approved, the Kansas Department of Revenue generally pauses aggressive collection activities such as wage garnishments or bank levies. Interest continues to accrue on unpaid balances during the payment period.
Refunds or credits issued by the state may be automatically applied to the outstanding tax debt.
Upon completion of all payments, the account is closed and the tax liability resolved.
Common Mistakes to Avoid
Missing scheduled payments often results in immediate plan cancellation and renewed tax enforcement. Ignoring administration fees or payment deadlines increases the risk of tax warrants.
Submitting incomplete financial information delays approval and may lead to denial. Failing to maintain compliance with current tax obligations undermines payment arrangements.
Frequently Asked Questions
How long can a Kansas payroll tax payment plan last?
Plan length depends on the amount owed and financial ability. Business plans exceeding six months and individual plans over twelve months require tax warrant filings.
Do penalties and interest stop during a payment plan?
No, interest rate charges continue to accrue until the full tax debt is paid.
What payment methods are accepted?
Kansas accepts checks, electronic payment options, credit card payments, and online payments through Kansas WebFile and the Kansas Payment Center.
Is there a fee to set up a payment plan?
Payment plans exceeding ninety days include a $25 administration fee.
Can federal payroll taxes be included?
Kansas payment plans cover only state tax liability. Federal tax debts must be addressed with the Internal Revenue Service.
What happens if the plan is cancelled?
Cancelled plans typically result in wage garnishments, tax liens, or asset seizures. Immediate contact with the department is recommended.
Can a payment plan be modified?
Modifications may be possible if financial circumstances change. The Department of Revenue determines approval.
Is a payment plan the same as tax relief?
No, payment plans do not reduce tax debt. Kansas tax relief programs are separate and have different eligibility rules.
Closing
Kansas payroll tax payment plans provide a structured option for resolving unpaid tax liability through manageable periodic payments. Understanding eligibility, submitting accurate documentation, and maintaining compliance are essential to success.
Addressing Kansas back taxes early helps prevent civil tax enforcement and preserves financial stability. For assistance, taxpayers should contact the Kansas Department of Revenue or use official online resources for current guidance.
Facing State Enforcement Action?
If you’ve received a notice related to sales tax or payroll tax enforcement, and aren’t sure how to respond, our team can help you understand your options and next steps.
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