Hiring Employees in Kansas LLC – Wages, Laws, Compliance Guide


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Any business structure or corporation stands firm on its foundation laid by the employees. An LLC is no exception to this rule. Hiring employees in your LLC comes with some rules, regulations. Before understanding the rules of hiring employees in Kansas LLC, we must understand what an LLC means.

A Limited Liability Company is a business structure that protects the owners from any personal responsibility of the debts or liabilities arising out of the LLC. If an employee action succeeds to liabilities, the owners get the protection against it. LLCs are a combination of the characteristics of a partnership firm & a sole proprietorship. 

Hiring Employees in Kansas

In order to hire employees in Kansas LLC, there are many requirements that a business has to fulfill. One should keep these points in mind while hiring employees in an LLC. These requirements include:

1. Federal & State Employment Posters in Kansas

The employers in Kansas are required to show both Federal & State Employment posters mentioned in Equal Employment Opportunities Act, Americans with Disabilities Act, Fair Labour Standards Act (FLSA),  etc. You should seek professional help to fulfill all the norms or requirements.

2. Federal & State Required Forms

Hiring employees is a lengthier process that involves the filing of different forms & applications. Suppose you wish to hire employees in Kansas. In that case, you must ask your employees to submit the Employment Eligibility Form, the Federal Tax withholding form, the W-4 Form, Workers Compensation Claim Form, Disability Self- Identification Form, U.S. Citizenship and Immigration Services Form, etc. These Legal forms are easy and free to download.

3. Requirements of Kansas New Hire Reporting program

Employers of Business owners are bound by Kansas’ New Hire Reporting Program, under which they have to submit a report consisting:

  • Company Name
  • Company Address
  • Company federal tax ID number
  • Employee’s Name
  • Employee’s Social Security Number
  • Employee’s Address
  • First Day of paid Work

In addition to the forms mentioned above, payments, taxes, tax forms, & requirements, there may be some additional compliance for hiring in Kansas; you must adhere to those norms as well.

Can an LLC Hire Employees?

An LLC or a Limited Liability Company can be regarded as a corporation, partnership, or sole owner business. The owners of the LLC are often referred to as members. Individuals, Corporations &, in some cases, other LLCs can form an LLC as members.

The members form LLCs because of their limited or no liability provided to the owners or members. In the event of liabilities arising out of an employee’s action, the members of the LLC are not personally liable- the LLC is liable for the actionable claim.

Any LLC (even one with a single owner) can hire unlimited employees on wages or salary. (The single-member owner LLC may have different rules and regulations). In addition to the salaried employees, the LLC can appoint Independent contractors for certain tasks on a contract basis. 

Rules to Hire Employees in an LLC in Kansas?

Just like any other business corporation, an LLC is also not immune from certain procedures & rules of hiring. An LLC files many documents & pays a number of taxes to various Government Agencies while hiring employees. Some of the essential rules or steps to hire employees in an LLC are:

  • Federal Employer Identification Number – Every LLC must obtain an Employer Identification Number (EIN) from the Internal Revenue Service. EIN helps report taxes & a few other documents to the IRS.
  • Employee Eligibility Form – It is mandatory for an LLC owner to check if the employee is eligible for employment in the U.S. An LLC has to ask the employees to submit the I-9, Employment Eligibility Verification Form to verify the identity of the employee & to authorize the employment. the I-9 form is a mandatory requirement while hiring an employee.
  • Employee’s Social Security Number – The employee has to have a valid Social Security Number (SSN) to work. LLCs have to ask the new employees to submit their SSN before employment. The SSN is helpful in payment & tax purposes.
  • Setting up a process for collection & payment of the appropriate taxes – There has to be a due process for the employees’ future collection & payment of taxes. This process needs to be set up by the employer (in this case, the LLC)
  • Employee handbook – In the hiring process, one of the crucial elements of hiring paperwork is an Employee Handbook. Although it is not essential in Kansas, it is usually needed as one of the legal documents in many other states. An Employee Handbook consists of a complete list of all the basic rules & policies of the company.
  • Kansas payroll Taxes – An LLC that is running a business with employees or businesses with employees has to pay many federal taxes & state Taxes. Following the rules on payroll taxes is also an essential requirement.  After hiring employees, an LLC is subject to the State Unemployment Compensation Act. Under the said Act, an LLC will have to pay Unemployment tax to the state & to do that; the LLC must register itself with the Kansas Workforce Commission. The process involves simple steps & can be completed in 20 minutes. 
    Payroll taxes also include Federal Income Tax withholding, an employer can withhold money from the employee’s account for the income tax.
  • Workers’ Compensation Insurance An LLC operating in the state of Kansas has to carry workers’ compensation insurance & has to display relevant posters.
  • New Hire Report or Report of the New Employee – An LLC has to
    • Report about hiring the new employees in the form of “Report of New Employee(s)” to the Kansas Workforce Commission within 20 days from the date of hire.
    • Deposit and report federal employment taxes as per the IRS procedures for payroll reporting & payment.

Laws Relating to Wages of Employees

Kansas has regulations governing employee pay and benefits, such as continuance of health insurance, wage payment, pay frequency, pay statements, and wage deductions.

  1. All labor and workplace laws are enforced by the Kansas Department of Labor Employment Standards Division. Employers must follow any final pay and job reference standards when an employee’s employment terminates.
  2. All business LLCs and other establishments in the State must adhere to the workplace laws and requirements as set out in the federal and State Labour regulations.

Structure of The Wages of The Employees

In terms of wage and hour standards, both federal and state laws protect Kansas employees. The Fair Labor Standards Act is the principal federal statute that oversees pay and working hours. Kansas also has labor regulations that govern the state’s minimum wage and overtime restrictions. We have listed below some of the significant aspects that determine the wage structure in the State of Kansas.

Kansas Minimum Wage Standard

Kansas’ current minimum wage for non-exempt workers is $7.25 per hour. Tip employees and full-time students working part-time are examples of exempt employees.

  • For Tipped employees, they are paid a minimum of $2.13 per hour. However, gratuities must be sufficient to bring the employee up to the state minimum wage of $7.25. In case the total wage of the employee falls short to reach the standard wage rate, then the employer is liable to compensate for the difference amount.
  • For minor employees, Minors under the age of 16 are not permitted to engage in hazardous jobs. Many jobs that kids are actively authorised to engage in, such as office and clerical work, are also listed under child labour legislation.

Kansas Overtime wage

Kansas labor rules compel businesses to pay 1.5 times their regular pay rate to employees who work beyond the 46 hours in a workweek threshold and are not protected by the federal Fair Labor Standards Act (FLSA). Unless otherwise exempt, the FLSA mandates employers to pay employees overtime at a rate of 1.5 times their usual wage if they work more than 40 hours in a workweek.

Kansas Employee Rights

Employee rights are the rules by the state. Employers are bound to follow these rules while hiring employees in LLCs. These rights are as follows,

Right to Fair Pay

All the employees in the State of Kansas have the legal right to receive fair compensation for their employment, as well as the overtime payment. The minimum wage should be paid to all the employees, irrespective of their circumstances.

Protection Against Discrimination and Workplace Harassment

The US Civil Rights Act prohibits employers from pursuing any act in violation of the code of conduct to be followed at the workplace. No employer shall discriminate between the employees based on race, color, gender, disability, age, etc.

In addition, equal opportunities for growth and development should be provided to every employee regardless of their background.

Time Off and Leaves of Absence

Kansas has several laws relating to required time off and leaves of absence for employees. Under the Family and Medical Leave Act, employees shall receive unpaid, yet job-protected leave for any medical or family reasons.

Organizational Exit

Key Kansas requirements impacting organizational exit are: If an employee resigns or is fired, he or she must be compensated by the following scheduled payday. Wages must be paid through the employer’s standard payment methods.

Workplace Health and Safety

Employers are bound by the Occupational Health and Safety act to ensure a safe, secure and healthy workplace for their employees, free from any kind of foreseeable risks and harms. The employees should also receive proper training at the workplace to make them aware of their jobs without suffering any injuries.

In case the employee sustains an injury or there occurs any fatality at the workplace, then the employee has the legal right to seek compensation from the employer for the injuries suffered and the losses that might have occurred due to the injuries. 

How to Hire Employees Fast in Your Kansas LLC

To hire employees for your Kansas LLC you need to verify if the person is eligible to work in the US and then report him/her as ‘new hires’ to the state.

How to Hire Employees Fast in Your Kansas, LLC may be a little more complicated than you might think. First, you must ensure that your business is legally compliant. This includes carrying workers’ compensation insurance, posting the relevant posters, and reporting new hires to the Kansas Workforce Commission within 20 days of their hire. Additionally, you must pay federal employment taxes on your new employees, as per IRS rules. Also, there are various laws governing the pay and benefits of employees, including the continuance of health insurance, pay frequency, and wage deductions.

Before you start hiring employees for your Kansas LLC, you must register your business name with the Kansas Secretary of State. The business name should be unique, as this is what customers will see when they enter your company. If possible, use your own name as the business title. This will save time and ensure that your business name is registered with the Kansas Secretary of State. Then, choose your employees. Then, get them started.

You must also file annual reports in Kansas. These reports are required by the state to show that your business is still active. You must file them by April 15th. However, you can file them earlier if you need to. You can do this either online or by mail. The filing fee for your Kansas LLC is $55.

When it comes to hiring employees, it is important to keep in mind that an employee handbook is an essential document. Although it is not required in Kansas, most states require that every LLC owner has an employee handbook that outlines the basic company rules and policies. In addition, a handbook is helpful for future employees, especially those who are new to the business. If you want to hire people for your business, here are some ways to do it.

Name your business. You need to choose a name for your Kansas LLC that is distinctive from other companies. If you are considering the name of your business, make sure it is available. If your chosen name is already taken, you will need to choose another one. You can also use your name in the title. Make sure that it is unique, and that it is not already in use by another company.

Hiring employees is not always easy, but there are some things you should remember before you start the process. You should first determine if you are ready to hire a full-time employee. If not, you can opt for a part-time employee. You should also make sure that you get the proper paperwork. You must obtain your EIN number from the Kansas Department of Revenue Customer Service Center. Remember that you must pay taxes for your employees.

Creating an LLC in Kansas is not difficult if you follow the steps properly. The Kansas Secretary of State can provide you with an LLC certificate of good standing if you need one, or you can order one through the mail. Once you’ve done all that, you’ll need to hire employees to run your business. There are a few steps you need to follow to hire employees fast. You should also ensure that your business has a good record with the state.

FAQs

What Is an LLC?

An LLC is a business entity that can be treated as either a corporation, a partnership, or a sole owner business.

Is the LLC liable for damages caused by employees?

The owners of the company are not personally liable for the actions of the employees, the LLC is liable for any such actions.

What is the IRS Form I-9?

Before hiring an employee, under federal law, the business has to verify an employee’s eligibility to work in the United States with the (IRS Form I-9). The business owner also has to make sure the employee has a valid SSN or Social Security Number.

What is LLC self-employment?

LLC members, or LLC owners, are self-employed according to the IRS because they pay themselves through the earnings of LLC.

In Conclusion

All the LLCs with employees are bound by many rules and regulations with reference to wages. It is always advisable to register a registered agent service to understand the laws better. Feel free to share your feedback with us in the comment section below.

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