Wholesalers 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 Business License Office at City Hall, 1st floor, 414 E. 12th St., Kansas City, Missouri 64106. A Zoning Clearance is required for a wholesaler located in Kansas City, Missouri.
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.
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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 A included with the form.
Tips
- A wholesaler located in Kansas City, Missouri should include both “destination sales” (i.e. sales delivered to a point within Kansas City, Missouri) and “origin sales” (i.e. sales originating in Kansas City, Missouri and shipped to a point in the State of Missouri) as gross receipts.
- A wholesaler that is not located in Kansas City, Missouri (and has no employee presence) should only include “destination sales” delivered into Kansas City, Missouri with their own trucks as gross receipts. If the goods are shipped into Kansas City, Missouri only by common carrier (i.e. USPS, UPS, Fedex, etc.) a business license is not required.
Resources
Code of Ordinances,
Chapter 40, Article IForm 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.
Tips
- Wholesalers 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.
Resources
Code of Ordinances, Chapter 68, Article VI
Earnings and Profits Tax Regulations
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. Beginning January 1, 2021, Form RD-110 must be filed electronically. Employers can use Quick Tax or the Bulk Filing Program through a third party payroll provider. Failure to file electronically may result in filing penalties.
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. Beginning January 1, 2021, Form RD-113 must be filed electronically. This includes W-2 records. Employers can use Quick Tax or the Bulk Filing Program through a third party payroll provider.
Tips
- 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.
- For non-residents, proportional withholding can be done based on the immediate experience of a person in the same position for the preceding year or the average experience of all individuals who have held the same position. For more information see the Earnings and Profits Tax Regulations.
Resources
Code of Ordinances,
Chapter 68, Article VI
Earnings and Profits Tax Regulations
Earnings Tax Magnetic Media and Electronic Filing Specifications2025 Due Dates for Wholesalers
January
31 Employer' Quarterly Return of Earnings Withheld (Form RD-110) -
4th Quarter, previous year.
Employer's Annual Reconciliation of Earnings Withheld
(Form RD-113)/ previous year W-2 Information
February
28 Business License (Form RD-105)
April
15 Profits Earnings Tax (Form RD-108/ 108B) and Extension
(Form RD-111), calendar filers
30 Employer's Quarterly Return of Earnings Withheld (Form RD-110) -0
1st Quarter
July
31 Employer's Quarterly Return of Earnings Withheld (Form RD-110) -
2nd Quarter)
October
31 Employer's Quarterly Return of Earnings Withheld (Form RD-110) -
3rd Quarter
