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Don't HR Alone #32 - Ohio, Kansas, Iowa, and Missouri State Updates

Ohio budget bill changes income tax brackets, establishes amnesty — OHIO — Withholding and Reporting

Ohio Gov. John Kasich has signed the 2018-19 Ohio budget, which eliminates some personal income tax rates and makes other income tax changes. The governor also released his veto message detailing the portions of the budget that he vetoed.

Personal income tax rates. For tax years beginning in 2017, the legislation eliminates the bottom two personal income tax brackets, applicable to income under $10,500 and adjusts the income ranges in the other brackets. Specifically, the new rates are as follows:

  • $10,501 - $15,800 has a marginal tax rate of 1.980% with a base tax liability of $77.96;

  • $15,801 - $21,100 has a marginal tax rate of 2.476% with a base tax liability of $182.90;

  • $21,101 - $42,100 has a marginal tax rate of 2.969% with a base tax liability of $314.13;

  • $42,101 - $84,200 has a marginal tax rate of 3.465% with a base tax liability of $937.62;

  • $84,201 - $105,300 has a marginal tax rate of 3.960% with a base tax liability of $2,396.39;

  • $105,301 - $210,600 has a marginal tax rate of 4.597% with a base tax liability of $3231.95; and

  • $210,601 and over has a marginal tax rate of 4.997% with a base tax liability of $8,072.59.

Tax amnesty. A tax amnesty will be administered from January 1, 2018, through February 15, 2018, for financial institution, sales, use, cigarette, tobacco products, income, school district income, and commercial activity taxes (qualifying delinquent taxes). The amnesty will cover all qualifying delinquent taxes that were due and payable from any person as of May 1, 2017, were unreported or underreported, and remain unpaid.

The term "qualifying delinquent taxes" does not include any tax:

  • for which a notice of assessment or audit has been issued;

  • for which a bill has been issued;

  • that relates to a tax period that ends after the June 30, 2017; or

  • for which an audit has been conducted or is currently being conducted.

During the amnesty period, any person who pays the full amount of qualifying delinquent taxes and one-half of any interest due on those taxes will be relieved of all applicable penalties, including the balance of interest due and any criminal or civil action with respect to the tax. (H.B. 49, Laws 2017, generally effective June 30, 2017, and as noted above.)

Kansas addresses withholding tax due date changes — KANSAS — Withholding and Reporting

The Kansas Department of Revenue has issued a notice addressing changes to personal income withholding tax due dates as a result of recently enacted legislation. According to the department, the legislation advanced the date by which those deducting and withholding tax must file a return with the Department of Revenue and provide statements of the amount withheld to employees or payees from the last day of February to January 31st. (Notice 17-10, Kansas Department of Revenue, July 1, 2017.)

Weekly benefit amounts — IOWA — Unemployment Insurance

For the year beginning July 2, 2017, the maximum weekly benefit amounts are $455 for an individual with no dependents, $473 for an individual with one dependent, $490 for an individual with two dependents, $516 for an individual with three dependents, and $559 for an individual with four or more dependents. The minimum weekly benefit amounts will be $68, $71, $74, $78, and $82, respectively (IWD Communication, Iowa ¶1910). Taxable wage base — IOWA — Unemployment Insurance The taxable wage base in Iowa for 2018 will be $29,900, an increase of $600 from the 2017 taxable wage base amount of $29,300 (IWD Communication, Iowa ¶1205). Missouri Governor announces plan for minimum wage bill — MISSOURI — Wage Hour Rules

Missouri Governor Eric Greitens recently announced his intentions on the standard statewide minimum wage bill during a June 30 bill signing on budget bills and tort reform. Governor Greitens announced he will not sign legislation to create a standard statewide minimum wage—House Bills 1194 and 1193. Instead, the legislation will go into law automatically on August 28 without his signature. The identical measures prohibit political subdivisions from requiring a minimum wage that exceeds the requirements of state law. According to the governor, the measures will hurt jobs instead of helping, claiming that while increases in the minimum wage look good on paper, they don’t work in practice.

State of Missouri, Office of the Governor, Press Release, June 30, 2017,

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