Kansas Department of Administration

98-P-004 Kansas City Missouri Local Earnings Tax Calculation

DATE: September 5, 1997
SUBJECT: Kansas City Missouri Local Earnings Tax Calculation
EFFECTIVE DATE: Paychecks issued on or after September 19, 1997
CONTACT: Karen Banning (785) 296-7458  
APPROVAL: Image of approval signature.
SUMMARY: Change to the Kansas City Missouri Earnings Tax Exemptions

The General Assembly of the State of Missouri has recently passed legislation that exempts from the City of Kansas City, Missouri's earnings tax "any contributions to any deferred compensation plans, such as but not limited to, any salary reduction plans, cafeteria plans or any other similar plans deferring the receipt of compensation by a resident or non-resident if such contribution is not subject to Missouri state income tax at the time such contribution is made". The savings and retirement plans which have been identified by the Payroll Services team as exempt are: KPERS (both regular and buy back amounts), VTSA, TSA (both regular and phased deductions), and Deferred Compensation (457DEF).

The new exemption is effective for all wages earned after August 27, 1997 (ie; the payroll period beginning August 24, 1997 and ending September 6, 1997, paid September 18, 1997).

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