Kansas' law exempts certain groups of employees from Unemployment Compensation Insurance (UCI).
Likewise, the State's Section 218 Agreement with the Social Security Administration exempts others
from Social Security (OASDI) and Medicare. This informational circular is being issued to assist
agencies in properly establishing UCI, Social Security and Medicare tax coverage for employees.
Following is a list of exemptions from UCI. This list is not intended to be all-inclusive
and addresses those exemptions most applicable to State of Kansas employees. The
statutory reference is included:
- Students, who are enrolled and regularly attending classes, in the employ
of a college or university (K.S.A. 44-703(i)(4)(N)).
- Patients in the employ of a hospital licensed, certified or approved by the
Secretary of Health and Environment (K.S.A. 44-703 (i)(4)(P)).
- Services performed as part of an employment work relief or work training
program assisted or financed in whole or in part by any federal agency or an
agency of the state or political subdivision, by an individual receiving such
work relief or work training (K.S.A. 44-703 (i)(4)(L)). (Does not apply to Employee
Under Public Service Careers or the Emergency Employment act of 1971.)
- Ordained, commissioned or licensed ministers of a church in the exercise of
their ministry or members of a religious order (who have taken a vow of poverty)
in the exercise of duties required by such order (K.S.A. 44-703 (i)(4)(J)).
- Individuals (patients, etc.) in a facility that's purpose is providing rehabilitation or remunerative
work, who are impaired by age, physical or mental deficiency, or injury, or who because of their
impaired physical or mental capacity cannot be readily absorbed in the competitive labor market (K.S.A.
44-703 (i)(4)(K)(i)(ii)).
- Services performed in the employ of the United States Government (K.S.A.
44-703 (i)(4)(D)).
- Elected officials (K.S.A. 44-703 (i)(4)(A)(i)).
- Members of legislative bodies (K.S.A. 44-703 (i)(4)(A)(ii)).
- Members of the judiciary or of a state or political subdivision (K.S.A. 44-703
(i)(4)(A)(ii)).
- Members of the state national guard or air national guard (K.S.A. 44-703
(i)(4)(A)(iii)).
- Employees serving on a temporary basis in cases of fire, storm, snow, earthquake,
flood, or similar emergency (K.S.A. 44-703 (i)(4)(A)(iv)).
- Employees in a position which, under or pursuant to the laws of this state,
is designated as a major nontenured policymaking or advisory position or as
a policymaking or advisory position the performance of the duties of which ordinarily
does not require more than eight hours per week (K.S.A. 44-703 (i)(4)(A)(v)).
(Note: Board member positions (for example, job code 010300)
would be included in this group of employees.)
- Inmates in the employ of a custodial or correctional institution (K.S.A.
44-703 (i)(4)(M)).
If an employee is on more than one concurrent position, and at least one of those
positions is subject to UCI, then the Employee Tax Data should be set to subject.
UCI tax will have to be calculated and paid on all wages for that employee including
positions that are not normally subject to UCI, such as board member pay.
Agency personnel are responsible for ensuring that employees are exempted from UCI coverage as
appropriate. Exemptions from UCI are entered in SHARP under Employee Tax
Data (path: 'Compensate Employees', 'Maintain Payroll Data (US)', 'Use') on the State Tax Data 2
page by clicking "on" the 'Exempt From SUT' checkbox.
Following are the exemptions from Social Security (OASDI) and Medicare, based on the State's current
Section 218 Agreement:
- Students in the employ of a college or university who are
regularly enrolled and attending classes (321.1(g))
- Members of the Kansas Police & Firemen's Retirement (321.1(d))
- Non-resident aliens in possession of an F-1 VISA (321.1(h))
- Non-resident aliens in possession of a J-1 VISA (321.1(h))
- Non-resident aliens in possession of an M-1 or Q-1 VISA (321.1(h)) National
Guard employees on active duty (321.1(c))
- National Guard employees on active duty (321.1(c))
- Wages After Death - If a wage payment will be issued in the subsequent year after the year in
which the person died, the wages are not subject to Social Security and Medicare under Sec. 209M
of the Social Security Act
- Medicare covered employees - Kansas Police & Firemen employees hired after 04/01/1986 (Choose
"Medicare only" for the FICA Status field)
- Patients or inmates in the employ of a hospital, home, or penal institution
(321.1(b))
- Services by an individual who has taken a vow of poverty (321.1(j))
As with UCI, agency personnel are responsible for ensuring that employees are exempted from Social
Security (OASDI) and Medicare coverage as appropriate. Exemptions from Social Security and Medicare
are entered under Job Data (path: 'Administer Workforce', 'Administer Workforce (GBL)', 'Use') on
the Payroll page. If the employee is exempt from both OASDI and Medicare, 'Exempt' should be chosen
for the FICA Status field. If the employee is exempt only from OASDI, 'Medicare only' should be chosen.
DB:JJM: kao
