20-P-010 Unemployment Compensation Insurance Exemptions (August 28, 2019)

Kansas law exempts certain groups of employees from Unemployment Compensation Insurance (UCI). This informational circular is being issued to clarify information previously issued and to assist agencies in properly establishing UCI tax coverage for employees.

Attached is a listing of SHARP job codes that are exempt from UCI per state statutes. This list is not intended to be all-inclusive and addresses those exemptions most applicable to State of Kansas employees.

SHARP and Regent agency personnel are responsible for ensuring that employee tax data is accurate.  It is strongly recommended that agencies ensure all individuals responsible for establishing employee tax data review and understand this information and use the attached listing of exempt UCI jobcodes for reference when entering employee tax data.  If agencies have questions regarding UCI exemptions please contact Statewide Payroll.

An employee is subject to UCI and, for SHARP agencies, the Employee Tax Data/State Tax Data 2 page in SHARP should have the ‘Exempt From SUT’ checkbox clicked ‘OFF’ if either of the following exists:

• The employee is in a position/jobcode that is subject to UCI per state statute.
• The employee is concurrently employed in more than one position/jobcode, and at least one of those positions/jobcodes is subject to UCI.  In this case, UCI tax must be calculated and paid on all wages for the employee, including positions that are not normally subject to UCI such as board member pay.

An employee is exempt from UCI and, for SHARP agencies, the Employee Tax Data/State Tax Data 2 page in SHARP should have the ‘Exempt From SUT’ checkbox clicked ‘ON’ if the following exists:

• The employee is in a position/jobcode that is exempt from UCI per state statute.  See attached reference listing of current SHARP job codes and other statutorily exempt types of employment that are exempt from UCI.

Statewide Payroll will be implementing a new payroll error message for SHARP that will turn off the employee’s paysheet if the employee has one of the exempt job codes but is not set up as exempt from UCI.

NTR:abe
Exempt Job Codes
Printable Version of 20-P-010