Legislation recently signed by Governor Parkinson will lower unemployment insurance tax rates for about 38,000 employers this year and give all employers additional time to make their quarterly payments.
The legislation sets tax rates for 2010 and 2011 at levels calculated prior to rate compression, which will result in tax savings of about $43 million this year. 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.
Employers receiving a reduced tax rate for 2010 have been individually notified by mail of their new rates.
The 90-day grace period provided to all employers does not apply to submission of the quarterly wage report, only to 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.
Payment of tax contributions can be delayed up to 90-days past the due date without incurring interest. However if the payments are not made within that 90-day window interest will be assessed from the original due date. Also, employers should be aware that in some cases delaying their contribution payment may impact their tax rate for the following year. Any payment for first or second quarter taxes paid after July 31 will not be included in the tax computation for the following year, and could have an adverse affect on tax rates.
The Internal Revenue Service (IRS) recently created a site to assist unemployed individuals who may have difficulty with their Federal Income tax responsibilities this year.
Visit the IRS site for more information.
1099 tax forms mailed
The Kansas Department of Labor has mailed all 1099 tax forms to individuals who received unemployment benefits during 2009. If you have not received your 1099 in the mail by Monday, Feb. 8 please contact the Unemployment Insurance Contact Center.
As you probably can well imagine I am happy to be home for a few weeks. I have some personal business that needs some attention and a little break would be helpful. I have several meetings scheduled with constitutent groups and there are always daily phone calls and emails that require response.
I worked last Wednesday at the Lord’s Diner in Wichita where we served close to 550 meals. St John’s parish is responsible to go once a month and when we started eight years ago 300 meals was considered a busy evening. We currently share duties with another parish in Wichita and a group from IMA, an insurance agency 40 volunteers a night are required.
We all hope that someday soup kitchens, homeless shelters and the like become unnecessary.
March revenues for the State of Kansas were up for the first time since November. The tax-only revenues were up $12.2 million for March, 3.5% above the estimates, the Department of Revenue reported. The bright side of this news includes 7.9% increase in individual income taxes worth $11.06 million, and a $3.7 million (2.8%) increase in sales tax.
For this current fiscal year; the state is still $92.8 million or 2.8% below the latest revised November Consensus Revenue Estimate. These numbers prove we were close on our estimate that 09 income tax refunds may have skewed the figures. Hopefully all of you that are sitting on your tax payments will turn loose of your money so we can have a better handle on our financial position come April 20th when the next estimate will be available.
The legislature has wisely decided to wait until we return on April 28th for Veto session to work a budget. Our main objective was to wait to see how much revenue to expect and to have a better handle on our projected expenses.
I can tell you that many legislator groups are working on proposals. There are some who are dug in and say “no tax, increase”, other say “no more cuts”. You do not need to be a financial genius to know that we should be open-minded to all possibilities. Several of us are working on a business model approach with a business plan that tells us where we will be in 5-10 years given we take certain actions now.
My advice is to not get yourself too set in your ways, believe not much of what you hear, read or see on TV. Continue to contact us with your suggestions. Please make those suggestions with an alternative approach recommendation(s).
I have been called to D.C. for a National Conference of State Legislators Task Force meeting on Military Preparedness, Sustainability and Homeland Security during April 7-10th. The DOD is paying our way and I am one of the Co-chairman of the Task Force. This group is meeting so we can continue to justify the need for our Kansas Military Bases as well as receive briefings on recent terrorist threats and actions to counter those threats.
I consider it an honor and privilege to be your Representative in Topeka and I want to know what you think.
Rep. John C. Grange
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