Kansas PEO Laws: Registration, Bonding and Payroll Requirements
Kansas PEOs register annually with the Secretary of State under KSA 44-1701 et seq. ($250 fee), keeping positive working capital or posting security; registrations expire October 15. The 2026 SUI wage base is $15,100; new employers pay 2.7% (6.0% construction). Minimum wage is $7.25; no comp state fund or paid-leave mandate.
| PEO registration or licensing required | Yes - PEOs must register annually with the Kansas Secretary of State under the Professional Employer Organization Registration Act (KSA 44-1701 et seq., amended by 2025 HB 2092); the registration fee is $250 and registrations expire on October 15 following issuance source (opens in new window) |
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| Regulating agency | Kansas Secretary of State - administers PEO registration and renewals (KSA 44-1704, as amended by 2025 HB 2092); Kansas Department of Labor (KDOL) administers unemployment insurance source (opens in new window) |
| Bond or security requirement | No fixed bond amount for all registrants - a PEO must maintain positive working capital upon registration and thereafter (KSA 44-1706(a)(1)); a PEO unable to maintain positive working capital must submit a bond securing payment of all taxes, wages, benefits, and other obligations owed to employees of a client; and the secretary may require a bond not to exceed $100,000 if the secretary has reason to believe a PEO is insolvent or financially unable to provide services, benefits, or wages source (opens in new window) |
| Registration renewal cycle | Annual - registrations expire on October 15 following issuance (registrations issued on or after January 1, 2025 expire on October 15, 2026); renewals and the $250 fee are due by October 15 source (opens in new window) |
| SUI taxable wage base | $15,100 per employee per calendar year for 2026 (up from $14,000 in 2025) source (opens in new window) |
| New-employer SUI rate | 2.7% for new non-construction employers; 6.0% for new construction employers (2026) source (opens in new window) |
| State workers' comp fund | No - Kansas workers' compensation insurance is provided by private insurers; the state does not operate a workers' compensation fund source (opens in new window) |
| State paid leave mandate | No - Kansas has no state paid sick leave or paid family leave mandate source (opens in new window) |
| State minimum wage | $7.25 per hour (the federal FLSA rate; Kansas has no separate state minimum wage, and Kansas law does not permit local governments to set higher local minimums) source (opens in new window) |
| PEO SUI reporting basis | PEO/leasing-company level - leased employees are considered employees of the leasing company for unemployment insurance purposes; wages the leasing company pays are reported under the leasing company's UI account, and the client (user employer) is not required to report wages for leased employees unless the leasing company fails to do so source (opens in new window) |
Sources
- Kansas Secretary of State - PEO filings: annual registration required, expires October 15, $250 fee — verified 2026-08-12
- Kansas Secretary of State - PEO registrations filed with the Secretary of State under KSA 44-1701 et seq. — verified 2026-08-12
- KSA 44-1706 - positive working capital required; bond securing taxes, wages, benefits if unable; bond up to $100,000 if insolvency suspected — verified 2026-08-12
- Kansas Secretary of State - registrations expire October 15 following issuance; renewals due by October 15 — verified 2026-08-12
- KDOL bulletin - 2026 unemployment insurance taxable wage base $15,100 (up from $14,000) — verified 2026-08-12
- KDOL - Tax Rates: new non-construction employer 2.7% for 2026; new construction employer 6.0% — verified 2026-08-12
- Kansas Insurance Department - workers' compensation provided by private insurers; no state-operated fund — verified 2026-08-12
- KDOL - Leave Laws: no state paid sick leave or paid family leave mandate — verified 2026-08-12
- KDOL - Minimum Wage: $7.25, equal to the federal minimum; no separate state or local minimum — verified 2026-08-12
- KDOL - Leased Employees: considered employees of the leasing company; wages reported under the leasing company's UI account — verified 2026-08-12
What we know about Kansas
Kansas moved PEO regulation to a new home in 2025. Under the Professional Employer Organization Registration Act, KSA 44-1701 et seq., as amended by 2025 House Bill 2092, registration now runs through the Kansas Secretary of State rather than an insurance or labor agency, and the secretary of state's PEO filing page makes the mechanics concrete: registration is annual, expires on October 15 following issuance, and carries a $250 fee, with renewals due by October 15. The 2025 amendment also produced a transitional rule - registrations issued on or after January 1, 2025 expire on October 15, 2026 - so the 2026 renewal cycle is the first full cycle under the new regime.
The financial requirement, set out in KSA 44-1706, is not a fixed bond blanket but a working-capital test with a bond backstop. A PEO must maintain positive working capital upon registration and thereafter. A PEO that cannot maintain positive working capital must submit a bond, held by a depository designated by the secretary, that secures payment of all taxes, wages, benefits, and other obligations owed to employees of a client. On top of that, the secretary may require a bond of up to $100,000 whenever there is reason to believe a PEO is insolvent or financially unable to provide services, benefits, or wages - a discretionary escalator that gives the state a real-time enforcement lever beyond the static filing requirements.
Kansas unemployment insurance gets its first wage base increase in years for 2026: KDOL announced the taxable wage base rises from $14,000 to $15,100 effective January 1, 2026. Rate-wise, the 2026 new employer rate is 2.7 percent for new non-construction employers and 6.0 percent for new construction employers, with experience-rated employers ranging from 0 to 7.2 percent.
Kansas is also a PEO-level reporting state. KDOL's leased-employees guidance states plainly that leased employees are considered employees of the leasing company for unemployment insurance purposes, that wages paid by the leasing company are reported under the leasing company's UI account, and that the client, or user employer, is not required to report wages for leased employees unless the leasing company fails to do so. That puts the leasing company's account at the center of Kansas UI administration - the client's workforce rides on the PEO's account and experience rating, making the PEO's rate the operative number for leased workers.
The floor numbers are familiar: the minimum wage is the federal $7.25, Kansas has no state paid leave mandate, and workers' compensation is written by private insurers in a market with no state-operated fund. For a PEO, the Kansas checklist turns on the October 15 renewal date, the working-capital requirement with its $100,000 insolvency backstop, and the fact that the leased workforce lives on the PEO's own UI account.
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