06/30/2024

Kansas Tax Relief: New Legislation Lowers Taxes for Residents and Businesses; Key Changes for Banks, Trust Companies, and Employee Rewards

There has been a lot of talk in Kansas since the start of the year about tax relief. On Friday, June 21st, Governor Laura Kelly signed a bill that will provide reductions in individual income taxes and property taxes as well as a benefit for Kansas banks and trust companies. The normal privilege tax rate will be reduced from 2.25% to 1.94% for banks and from 2.25% to 1.93% for trust companies. The rate change is effective for the 2024 tax year. The surtax will remain the same at 2.125% for banks and 2.25% for trust companies on all income greater than $25,000. The percentage used in the computation of your monthly tax accrual will decrease to 4.065% for banks and 4.18% for trust companies. This will not change the quarterly estimate payments that we have scheduled for 2024 as you are paying in to cover 2023 total tax. Please contact us if you need help with your monthly book accrual or if you would like us to review your changes.

Gift cards are a convenient way to reward employees. However, there are tax consequences that you may not have been aware of. Gift cards, regardless of the amount, are considered taxable income to the employee and should be included in their W-2. Also, tangible gifts need to be valued at less than $25 to avoid taxation to the employee.

If you have questions on either of the topics noted above, please contact Michelle Crow, Laura Wenzke, or Erin Schob.

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