This guide is intended for use by manufacturers with a plant location in Kansas City, Mo.
Manufacturers must be registered and licensed to do business in Kansas City, Missouri. The first step is to submit a Registration Application (Form RD-100).
Form RD-100 can be submitted electronically on Quick Tax or in person to the City’s Business License Office at 1118 Oak Street, Kansas City, Missouri 64106. A Zoning Clearance is required.
Once the application is processed, the appropriate tax accounts will be created and you will receive a notice listing your account numbers to reference on returns you file and when communicating with the Revenue Division.
To obtain a license, new businesses are required to file Form RD-105 no more than 60 days after opening in Kansas City, Missouri. A business license must be renewed each year by filing Form RD-105 prior to March 1. The cost of a license is determined by the amount of gross receipts from the prior calendar year using rate Table B included with the form.
- Gross receipts are the total value of all products manufactured in Kansas City, Missouri minus the cost of raw materials purchased outside the State of Missouri and used as components in the production process.
- Employee salaries, plant and machinery operation, machine maintenance, product handling, packaging and storage are not considered components in the production process.
Code of Ordinances, Chapter 40, Article I
Form RD-108/ 108B is a tax return filed annually and is used to pay the 1% earnings tax on the net profits of a business. The return is due by April 15 of each year and is required even if there is a loss. If you file income taxes on a fiscal year basis, the return is due 105 days from the end of your fiscal year.
Extensions of time to file may be requested by submitting Form RD-111. Extension requests are granted to provide an additional six months to file. They are not an extension of time to pay the tax due. A payment of at least 90% of the tax due must be submitted with Form RD-111 to avoid penalty and interest. This request is separate from an extension request submitted to the IRS for federal income tax purposes and should be sent directly to the Revenue Division. The IRS does not send this information to municipalities.
- A manufacturer should only report their “destination sales” (i.e. sales delivered to a point within Kansas City, Missouri) on Line 24 B of Schedule Y on Form RD-108B.
Employers are required to deduct the earnings tax on wages and salaries paid to residents of Kansas City, Missouri and non-residents performing services within Kansas City, Missouri city limits.
In general, taxable earnings are gross compensation less contributions to cafeteria plans and qualified deferred compensation plans, similar to the amount used to calculate Box 1 of Form W-2 for federal income tax purposes. The withholding tax is to be remitted to the City at the same frequency used for state income tax withholding purposes. Remittances can be made electronically on Quick Tax or by using Form RD-130M or Form RD-130QM.
In addition to regular remittances, Form RD-110 is a return that is filed quarterly to report the taxable earnings paid for the quarter. The return is required even if there was no withholding during the quarter. Payments can be made with Form RD-110 for amounts not previously paid through prior remittances. Employers with 250 or more employees must file electronically through Quick Tax. Third party payroll providers may use the Bulk Filing Program to file returns electronically.
After the end of each year, employers are also required to file a reconciliation of annual withholdings to payments remitted on Form RD-113. The return is due by January 31. W-2 information is also required to be submitted at the same time. W-2 information should only be provided for employees who had earnings tax withheld from their compensation. Employers with 250 or more employees must file Form RD-113 and submit W-2 information electronically through Quick Tax.
- Remittance due dates are published annually.
- Employers that fail to submit Form RD-113 or W-2 records are subject to a penalty. The penalties mirror those charged by the Internal Revenue Service.
2020 Due Dates for Manufacturers
1 New Year's Day - City Offices closed
20 Martin Luther King Jr. Day - City Offices closed
31 Employer' Quarterly Return of Earnings Withheld (Form RD-110) -
4th Quarter 2019
Employer's Annual Reconciliation of Earnings Withheld
(Form RD-113)/ 2019 W-2 Information
17 Presidents Day - City Offices closed
29 Business License (Form RD-105)
30 Employer's Quarterly Return of Earnings Withheld (Form RD-110) -
1st Quarter 2020
25 Memorial Day - City Offices closed
3 Independence Day (observed) - City Offices closed
15 2019 Profits Earnings Tax (Form RD-108/ 108B) and Extension
(Form RD-111), calendar filers
31 Employer's Quarterly Return of Earnings Withheld (Form RD-110) -
2nd Quarter 2020)
7 Labor Day - City Offices closed
2 Employer's Quarterly Return of Earnings Withheld (Form RD-110) -
3rd Quarter 2020
11 Veterans Day - City Offices closed
26 Thanksgiving Day - City Offices closed
27 Thanksgiving Holiday - City Offices closed
25 Christmas Day - City Offices closed