79-1132. Same; payroll factor defined and described. (a) General. The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the taxable year by the taxpayer for compensation and the denominator of which is the total compensation paid for both within and without this state during the taxable year. The payroll factor shall include only that compensation which is included in the computation of the apportionable income tax base for the taxable year.
(b) Compensation relating to nonbusiness income and independent contractors. The compensation of any employee for services or activities which are connected with the production of nonbusiness income, income which is not includable in the apportionable income base, and payments made to any independent contractor or any other person not properly classifiable as an employee shall be excluded from both the numerator and denominator of the factor.
(c) When compensation paid in this state. Compensation is paid in this state if any one of the following tests, applied consecutively, is met:
(1) The employee's services are performed entirely within this state;
(2) the employee's services are performed both within and without the state, but the service performed without the state is incidental to the employee's service within the state. The term "incidental" means any service which is temporary or transitory in nature, or which is rendered in connection with an isolated transaction;
(3) if the employee's services are performed both within and without this state, the employee's compensation will be attributed to this state:
(A) If the employee's principal base of operations is within this state; or
(B) if there is no principal base of operations in any state in which some part of the services are performed, but the place from which the services are directed or controlled is in this state; or
(C) if the principal base of operations and the place from which the services are directed or controlled are not in any state in which some part of the service is performed but the employee's residence is in this state.
History: L. 1996, ch. 270, ยง 5; July 1.
Structure Kansas Statutes
Article 11 - Banks, Banking Businesses, Trust Companies And Savings And Loan Associations
79-1107 National banking associations and state banks; tax imposed; rate.
79-1108 Trust companies and savings and loan associations; tax imposed; rate.
79-1109 "Net income" defined; deductions.
79-1109a Application of 79-1107 and 79-1109.
79-1110a Application of 79-1110.
79-1111 Same; administration of act; rules and regulations.
79-1112 Disposition of tax moneys; privilege tax refund fund established; refunds.
79-1115 Application of 79-1107 and 79-1108.
79-1116 Application of 79-1107, 79-1108 and 79-1109.
79-1120 Recapture tax; definitions.
79-1121 Same; imposition; computation of amount.
79-1122 Same; time for assessment and payment; penalties.
79-1123 Administration of act; rules and regulations.
79-1124 Same; disposition of moneys; refunds.
79-1126 Credit against tax for interest rate reduction for agricultural production loan.
79-1126a Credit against tax for interest rate reductions on certain agricultural production loans.
79-1127 Estimated tax; manner of payment; penalties.
79-1129 Same; procedures and methodology in determining allocable and apportionable income.
79-1130 Same; receipts factor defined and described.
79-1131 Same; property factor defined and described.
79-1132 Same; payroll factor defined and described.
79-1133 Tax upon cessation of business as financial institution; computation.
79-1134 Supplemental to 79-1106 et seq.
79-1135 Consolidated returns or combined reports required, when.