24-P-003 State of Kansas Policy Regarding International Employment
To address the limitations as agencies consider foreign employment arrangements across the State workforce, the State of Kansas policy regarding international employment is outlined below:
- State of Kansas payroll will only calculate, withhold, remit and report for U.S. tax jurisdictions under the authority of the United States Internal Revenue Service and the associated state and local tax jurisdictions. In addition, payments from State of Kansas payroll may not be direct deposited to an international banking institution.
- State of Kansas payroll does not support international payroll processing including, but not limited to, international HR/Payroll regulations, time reporting, payroll calculation, tax/deduction withholdings, remittances and/or reporting. Agencies who wish to hire individuals internationally are recommended to contract with employment firms with expertise in employment, reporting, and tax laws and requirements for that country who can ensure all HR/Payroll requirements for the international hire are managed in accordance with the country’s employment and tax laws and regulations.
- State of Kansas employees who are legally eligible to work in the United States and under U.S. tax jurisdictions may work remotely in locations outside of the United States at times to meet the business needs of the entity, but never in a work situation that places them under the authority/requirement of being subject to international HR/Payroll rules or tax withholding/reporting requirements. Examples may include:
- International travel for temporary research and/or work-related conferences, meetings, etc.
- Remote work from an international location for which the foreign country’s tax law or U.S. tax treaty guidelines allow a period of time during which the individual may work from the foreign location without incurring a tax withholding/reporting responsibility to the foreign country and the tax jurisdiction(s) for the employee remains as U.S. withholding/reporting. NOTE: Agencies are responsible for securing a legal review of the international tax law in cases where a request for temporary remote work is presented and providing documentation to Statewide Payroll that the temporary international remote work location does NOT impact the individual’s U.S. tax withholding requirements including, but not limited to, the determination by the legal entity completing the review and references to the specific foreign country’s tax code and/or tax treaty details that support the determination.
- For employees who want to deposit funds to an international bank account, reference Payroll Job Aid International ACH:
NR:SGZ:had
