Unemployment Insurance Law Summaries
Kansas, Unemployment Insurance Law Summaries
Kansas's unemployment insurance law is located in Chapter 44, Article 7, Kansas Revised Statutes Annotated (1981), as amended (for full text, see Unemployment Insurance Reports beginning at UI-KS ¶4001 ); and in the Rules and Regulations issued under the Kansas Employment Security Law, Secs. 50-1-1 to 50-4-2.
DEFINITIONS
“Employer” means one who paid wages of $1,500 or more in any calendar quarter in either the current or preceding calendar year, or employed at least one individual for some portion of a day in each of 20 calendar weeks in either the current or preceding calendar year, whether or not such weeks were consecutive. Generally, an employer subject to the federal law is automatically subject to the Kansas law.
“Employment” means service, including service in interstate commerce, by any active officer of a corporation, or any individual who, under the usual common law rules for determining the employer-employee relationship, has the status of an employee. Service on an American vessel or aircraft is covered if control and management of that vessel or aircraft is within the state. Services performed by certain agent drivers or commission-drivers and by traveling or city salespersons are covered.
Service performed by an individual for wages or under any contract of hire constitutes employment unless and until it is shown that such individual is (a) free from control or direction; and (b) performing such service outside usual course of employer's business or outside all places of employer's business.
Generally, employment subject to the federal law is automatically subject to the Kansas law.
Exclusions from employment are listed below.
“Wages:” Compensation for personal services, including commissions, bonuses, back pay and cash value of remuneration in any medium other than cash (unless paid for agricultural labor). Gratuities, including tips received from persons other than the employing unit, are wages when reported in writing to the employer by the employee.
Employees must furnish a written statement to the employer reporting all tips received if they total $20 or more for a calendar month, whether the tips are received directly from a person other than the employer or are paid over to the employee by the employer. This includes amounts designated as tips by a customer who uses a credit card to pay the bill.
Also considered wages are most retirement payments (401(k) payments specifically may not be excluded) and sick pay, unless paid under a workers' compensation law. Exclusions from wages are listed below.
Remuneration over $8,000 paid by employer to an individual during any calendar year is excluded from wages. Wages for services in another state and wages paid by employer's predecessor may be included in first $8,000. If federal taxable wage base is increased, amount in Kansas will be increased to correspond with federal law.
COVERAGE
Generally, employment subject to the federal law is automatically subject to the Kansas law. Exclusions from employment are listed below.
Casual labor is generally not covered (unless performed for a governmental entity or exempt nonprofit organization). An individual is considered regularly employed by the employer only if on some portion of each of at least 24 days in the current or preceding quarter he performed casual labor.
Agricultural and domestic employers.- Service performed in agricultural labor for an employer who employs 10 or more workers in such labor in 20 different weeks in the current or preceding calendar year or pays $20,000 or more for such labor in any quarter of the current or preceding calendar year is covered. When agricultural labor is supplied by a crew leader, the employing unit for which the service is performed is the employer unless the crew leader is registered under the Federal Migrant and Seasonal Agricultural Workers Protection Act or substantially all of the crew members operate or maintain certain mechanized agricultural equipment that is provided by the crew leader. In either of these cases, the crew leader is the employer.
If an employer fails to maintain sufficient records to separate agricultural labor from other employment, all services performed during any pay period by an individual are agricultural labor if services performed by the individual during one-half or more of the period constitute agricultural labor; if services performed during more than one-half of the period by an individual do not constitute agricultural labor, none of the services of that individual constitute agricultural labor during the period.
Domestic service.- Domestic service in a private home, local college club or local chapter of a college fraternity or sorority is covered if performed for an employer who paid $1,000 or more in any quarter of the current or preceding calendar year for such service.
Government and nonprofit employers.- Services for a tax-exempt nonprofit organization are covered, as are most services performed for Indian tribes. Most service for the state and its political subdivisions is mandatorily covered.
Nonprofit organizations and Indian tribes may elect either the regular contributions or reimbursement method of financing benefits. A reimbursing nonprofit organization is liable for the full amount of regular benefits plus full amount of extended benefits paid to individuals.
A government entity may elect to pay contributions, make quarterly reimbursement payments at a fiscal year rate or become a rated governmental employer. Rates for rated governmental employers are based on the actual benefit cost experience (benefits paid divided by total wages) of all reimbursing employers; no such employer may pay less than 0.1%.
EXCEPTIONS
Wages.- Excluded from the term wages are the following:
Remuneration over $8,000 paid by employer to an individual during any calendar year. Wages for services in another state and wages paid by employer's predecessor may be included in first $8,000. If federal taxable wage base is increased, amount in Kansas will be increased to correspond with federal law.
Payments by employer to, or on behalf of, individuals in its employ under plan or system established on account of medical and hospitalization expenses or death.
Certain moving expenses, dependent care expenses and educational assistance payments that may be deducted from income taxes.
Payments made under simplified employee pension plans, as defined in the Internal Revenue Code.
Payments made under a cafeteria plan.
Certain trust and annuity plan payments.
Remuneration paid in any medium other than cash to an employee for service not in the course of his or her trade or business.
Any payment on account of sickness or accident disability made to an employee after the expiration of six months after the last month in which the employee worked for the employer.
Any payment made by an employer to a survivor or the estate of a former employee after the year in which the employee died.
Whenever two or more employers that are related corporations concurrently employ the same individual and pay wages to the employee through a common paymaster that is one of the employers, each such employer is considered to have paid wages to the individual only in the amount actually disbursed by it to him or her and that employer is not considered to have paid any amount of wages to the individual that was actually disbursed by another of the concurrent employers.
Value of meals furnished on the employer's premises for the convenience of the employer.
Employment.- The term employment does not include the following:
Casual labor (unless performed for a governmental entity or exempt nonprofit organization) not in the course of the employer's trade or business performed in any calendar quarter by an employee, unless the cash remuneration for such service is $200 or more and the service is performed by an individual who is regularly employed by the employer to perform such service. An individual is considered regularly employed by the employer only if on some portion of each of at least 24 days in the current or preceding quarter he or she performed casual labor.
Insurance agents wholly on commission basis.
Newspaper and shopping news carriers under 18.
Person who is a member of a limited liability company who performs services as a member or manager of the company.
Organizations exempt from income tax, with respect to service performed in calendar quarter if remuneration is less than $50.
Qualified real estate agent for whom substantially all of the remuneration is directly related to sales or other output, rather than to the number of hours worked, and whose services are performed under a contract providing that the agent will not be treated as an employee for state tax purposes.
Relatives, i.e., service performed by individual in employ of son, daughter, or spouse, or by child under 21 in employ of parent.
Service covered by federal unemployment compensation system providing for payment of benefits.
Services performed as an extra in connection with any phase of motion picture or television commercials for fewer than 14 days during any calendar year.
Service by oil and gas pumpers performing services on one or more oil or gas leases, or both, on a contractual basis for the operators of the oil and gas leases (with the exception of services performed for a governmental entity or nonprofit organization).
Service by direct sellers of consumer products for purchase outside a permanent retail establishment where remuneration is based on output and a written contract provides that the sellers are not employees for federal and state tax purposes (Sec. 44-703).
Service by election officials or election workers if the remuneration for the service is less than $1,000 in the calendar year.
Government and nonprofit employers.- Services for a tax-exempt nonprofit organization are covered. Most service for the state and its political subdivisions is mandatorily covered.
Coverage of nonprofit organizations and the state does not include the following:
Church or organization operated primarily for religious purposes and which is controlled by a church.
Religious duties of a minister or member of religious order.
Service for a rehabilitation facility or facility that provides remunerative work for persons with impaired physical or mental capacity by a patient of such rehabilitation or remunerative program.
Individual receiving unemployment work-relief or work-training under program financed by federal agency, or agency of state or political subdivision.
Service performed by an inmate for a custodial or correctional institution, unless such service is performed for a private, for-profit employer.
Elected officials.
Members of a legislative body or the judiciary.
Members of the State National Guard or Air National Guard.
Employees serving on a temporary basis in case of fire, storm, snow, earthquake, flood or similar emergency.
Individuals serving in certain major nontenured policymaking or advisory positions.
Service for school, college or university performed by student enrolled and regularly attending classes.
Service by student enrolled at nonprofit or public educational institution in full-time work-study program. Exemption not applicable if program established for employer or group of employers.
Service by a patient for a hospital licensed, certified or approved by the Secretary of Health and Environment.
Service for the federal government or federal instrumentalities is excluded from coverage.
PROCEDURES
Base period.- First four of the last five completed calendar quarters preceding benefit year.
Benefit year.- First day of the first week in which a valid claim for benefits is filed and thereafter for one full year.
Weekly benefit amount.- 4.25% of the highest quarterly base-period wages, but not more than 60% of average weekly wage paid to employees for insured work as determined by Commissioner each year, nor less than the minimum weekly benefit amount (25% of the maximum weekly benefit amount). Maximum is computed to next lower multiple of $1 and minimum is reduced to lower multiple of $1. The maximum for the year beginning 7/1/2006 is $386, and the minimum is $96.
Maximum total benefits.- Either 26 times weekly benefit amount or
of base-period wages, whichever is lesser. In addition, during certain periods of high unemployment, payment of extended benefits at a claimant's weekly benefit rate.
A claimant may receive a shared work weekly benefit amount equal to the percentage of reduction (not less than 20% or more than 40%) in his or her wages resulting from reduced hours of work multiplied by the regular weekly benefit amount, for up to 26 weeks under a single plan, if the employer has elected to participate in a shared work plan.
Benefit eligibility: Requirements.-
Total base-period wages of not less than 30 times his or her weekly benefit amount and paid wages in more than one quarter of base period;
be able to perform the duties of his or her customary occupation or any other occupation he or she is fitted for, and is available for work, as shown by conduct reasonably calculated to result in reemployment;
serve one-week waiting period; and
participate in reemployment services, such as job search assistance, if the individual is determined as likely to exhaust regular benefits and to need reemployment services pursuant to a worker profiling system. Claimant not ineligible because enrolled and satisfactorily pursuing approved training program.
Benefits are not payable to an individual working in an instructional, research or administrative capacity for an educational institution for the period between two academic terms or during a paid sabbatical, if the individual has a contract of reasonable assurance of reemployment in the second year or term.
Benefits are not payable during an established vacation period or recess to an individual performing services of any capacity for an educational institution if he or she has performed services in the immediately preceding term and there is a reasonable assurance of reemployment.
Benefits are not payable for any week on the basis of service as a school bus driver or other motor vehicle driver employed by a private contractor to transport pupils, students and school personnel to or from school-related functions or activities for an educational institution, if such week begins during the period between two successive academic years or regular terms, and the driver has a contract or reasonable assurance to perform such services for both years or terms. No disqualification for service as a bus or other vehicle driver employed by a private contractor to transport persons to or from nonschool-related functions or activities.
Benefits are not payable to a professional athlete during periods between two sport seasons if there is reasonable assurance that he or she will return for the second season.
Benefits are not payable to an alien unless lawfully admitted for permanent residence, lawfully present to perform services or otherwise permanently residing in the United States under color of law.
An inmate of a custodial or correctional institution is deemed unavailable for work and ineligible for benefits while incarcerated.
Disqualifications-Period.- Voluntary leaving without good cause-day following separation and continuing until after the individual has become reemployed and has had earnings of at least three times the weekly benefit amount. Leaving is with good cause if the individual
was forced to leave because of illness or injury;
left temporary work to return to the regular employer;
left to enlist in the Armed Forces and was rejected or delayed from entry;
left because of the voluntary or involuntary transfer of his or her spouse to a place from which it is unreasonable for him or her to commute;
left because of certain hazardous working conditions;
left to enter approved training;
left because of unwelcome harassment at work;
left to accept better work;
left as the result of being instructed or requested by the employer, a supervisor or fellow employee to perform an illegal act in the scope of job duties;
left because of a violation of the work agreement by the employer;
after making reasonable efforts to preserve the work, left due to a personal emergency of such nature and compelling urgency that it would be contrary to good conscience to impose disqualification; and
the individual left work due to circumstances resulting from domestic violence, including (a) the individual's reasonable fear of future domestic violence at or en route to or from the individual's place of employment; or (b) the individual's need to relocate to another geographic area in order to avoid future domestic violence; or (c) the individual's need to address the physical, psychological and legal impacts of domestic violence; or (d) the individual's need to leave employment as a condition of receiving services or shelter from an agency which provides support services or shelter to victims of domestic violence; or (e) the individual's reasonable belief that termination of employment is necessary to avoid other situations which may cause domestic violence and to provide for the future safety of the individual or the individual's family.
An individual may prove the existence of domestic violence by providing one of the following: (1) A restraining order or other documentation of equitable relief by a court of competent jurisdiction; or (2) a police record documenting the abuse; or (3) documentation that the abuser has been convicted of one or more of the offenses where the victim was a family or household member; or (4) medical documentation of the abuse; or (5) a statement provided by a counselor, social worker, health care provider, clergy, shelter worker, legal advocate, domestic violence or sexual assault advocate or other professional who has assisted the individual in dealing with the effects of abuse on the individual or the individual's family; or (6) a sworn statement from the individual attesting to the abuse.
Leaving is voluntary if, after a temporary job assignment, the individual fails to affirmatively request an additional assignment on the next succeeding workday, if required by the employment agreement.
Discharge for misconduct connected with the work (including discharge for use of, possession of, or impairment by an alcoholic beverage, a cereal malt beverage, or a nonprescribed controlled substance while at work and repeated absence).
Discharge for gross misconduct connected with the work -until he or she becomes reemployed and has earned at least eight times the weekly benefit amount in insured work; in addition, all wage credits attributable to employment from which the individual was discharged for gross misconduct will be canceled.
No disqualification for discharge for misconduct or gross misconduct if the employer discharged the individual after learning that he or she was seeking other work or when he or she had given notice of future intent to quit; the individual was making a good-faith effort to do his or her work but was discharged due to inefficiency, unsatisfactory performance due to inability, incapacity or lack of training or experience; isolated instances of ordinary negligence or inadvertence; good-faith errors in judgment or discretion; or unsatisfactory work or conduct due to circumstances beyond his or her control; or the individual's refusal to perform work in excess of the contract of hire.
Failure to apply for or accept suitable work-week in which failure occurs and until the individual becomes reemployed and has earned at least three times the weekly benefit amount in insured work. Note that if the individual left employment as a result of domestic violence, and the position offered does not reasonably accommodate the individual's physical, psychological, safety, and/or legal needs relating to said domestic violence, no disqualification results.
Labor dispute-duration.
Receipt of unemployment benefits under other state, federal, or veteran's law, and receipt of workers' compensation-period for which payments are made.
Receipt of back pay award or settlement-allocated to week or weeks as specified in the award or agreement or, in the absence of such specificity, allocated to the week or weeks in which the remuneration would have been paid. Note that an overpayment will be established and collected from a claimant for any week in which he or she receives remuneration in the form of a back pay award or settlement. If the employer chooses to withhold from a back pay award or settlement the amount of unemployment benefits paid to a claimant, the employer must pay that amount to the Division.
Receipt of governmental or other pension, retirement or retired pay, annuity or other similar periodic payment based on previous work with base period employer-reduction of weekly benefit amount by amount of such pension, after taking into consideration contributions to the pension fund by the claimant.
False or fraudulent representation or withholding of material information-one year.
An individual is disqualified for any week in which he or she is registered at and attending an established school, training facility, or other educational institution or is on vacation during or between two successive academic years or terms. No disqualification if he or she was engaged in full-time work concurrent with school attendance, was attending approved training, or was attending evening, weekend or limited daytime classes that would not affect availability for work.
WHAT THE EMPLOYER MUST DO
Pay the standard rate.- See below for rates for new employers. Maximum possible rate is 5.4% plus applicable surcharges. No employee tax.
Experience rates.- Employer's tax rate for calendar year may be adjusted from the new employer's rate if there have been 24 months ending on preceding June 30 throughout which benefits could have been charged to its account. Beginning in 2007, a new employer pays four percent of wages paid during each calendar year with regard to employment, except construction industry employers pay six percent. Prior to 2007, new employers paid a rate equal to the sum of one percent plus the greater of the average rate assigned in the preceding calendar year to all employers in its industry division or the average rate assigned to all covered employers during the preceding calendar year. In no instance may any such assigned rate be less than two percent.
If the employer's total contributions paid on or before preceding July 31 for employment occurring prior to July 1 exceed benefits charged to its account, its rate will range from a minimum of zero to a maximum of 5.4%, plus any applicable surcharge, depending on its experience factor and the ratio of the fund balance to total wages. On each computation date, the total of taxable wages paid during preceding 12-month period by all eligible employers is divided into 51 groups. Note that in a year when the taxable wage base changes, the taxable wages used in the calculation of rates for that year and the following year will be an estimate of what the taxable wages would have been if the new taxable wage base had been in effect during the 12-month period prior to the computation date. Lowest and highest numbered groups consist of employers with most and least favorable reserve ratios, respectively. Experience factors are assigned according to rate group on the basis of reserve ratio and taxable payroll. If an employer's taxable payroll falls into more than one rate group, it is assigned the experience factor for the lower numbered rate group. Experience factors range from .025% for rate group 1 to 2.0% for rate group 51.
A positive-balance employer will be assigned an experience rate from Column C of Schedule I in accordance with the rate group to which it is assigned on the basis of its reserve ratio (the total benefits for all past years from all contributions divided by the employer's annual payroll) and taxable payroll. Employers who are current in filing quarterly reports and contribution payments may be eligible for a rate of 0.0% or reductions of 40% or 50%.
Special rates apply for negative-balance employers (employers whose total benefits charged for all past years have exceeded total contributions paid for such years). A negative-balance employer pays a basic rate of 5.4%. Each negative-balance employer will also pay an additional surcharge ranging from 0.2% to 2.0%, depending on the size of its negative reserve ratio. Note that an employer who does not satisfy average annual payroll requirements will pay the highest surcharge of 2%.
Rates for negative-balance employers, including the surcharge based on negative reserve ratio, may be determined from the following table (Sec. 44-710a(a)):
Negative Reserve Ratio
|
AssignedRate
|
EffectiveRate
|
Less than 2.0%
|
5.40%
|
5.60%
|
2.0 but less than 4.0
|
5.40
|
5.80
|
4.0 but less than 6.0
|
5.40
|
6.00
|
6.0 but less than 8.0
|
5.40
|
6.20
|
8.0 but less than 10.0
|
5.40
|
6.40
|
10.0 but less than 12.0
|
5.40
|
6.60
|
12.0 but less than 14.0
|
5.40
|
6.80
|
14.0 but less than 16.0
|
5.40
|
7.00
|
16.0 but less than 18.0
|
5.40
|
7.20
|
18.0 and over
|
5.40
|
7.40
|
For 2009, Schedule III is in effect. The ratio of the fund balance to total payrolls is 1.641% and the average required yield on taxable wages is 3.10% for 2009. Eligible positive-balance employers pay rates ranging from 0.00% to 5.40% for 2009. New employers pay 4.00%, except construction employers pay 6.00%, for 2009. Negative-balance employers will pay rates ranging from 5.60% to 7.40% for 2009.
Voluntary payments.- Permitted if made no later than 30 days after mailing of rate notice, but not later than 120 days after beginning of the year for which the rates are effective. No employer's rate will be reduced more than five rate groups as the result of a voluntary payment. A negative-balance employer may have its rate reduced to that prescribed in rate class 51 for a year by making a voluntary contribution payment in the amount of its negative account balance or to that rate prescribed for rate group 50 through 47 by making an additional voluntary payment that would increase its reserve ratio to the lower limit required for rate group 50 through 47 (Sec. 44-710a).
DEADLINES
Tax and reimbursement payments.- Form K-CNS 100, Employer's Quarterly Wage Report and Contribution Return, along with remittance, is due quarterly and must be postmarked by the last day of the month after the end of the quarter. Effective June 1, 2007 magnetic media data submissions are no long accepted. Employers with 250 or more employees and third party administrators with 250 or more client employees are required to file electronically after June 30, 2008. After June 30, 2009, employers with 100 or more employees and third party administrators with 100 or more clients must file electronically. After June 30, 2010, employers with 50 or more employees and third party administrators with 50 or more clients must file electronically. These requirements may be waived by the Secretary, if the employer demonstrates a hardship in complying with this subsection.
Wage reports.- Detailed wage information is also required on Form K-CNS 100, as noted above.
ENFORCEMENT
The Kansas Employment Security Law is administered by the Secretary of Human Resources through the Division of Employment Security.
If, after due notice, an employer defaults in payment of any penalty, contributions, payments in lieu of contributions, or interest thereon, the amount may be collected by civil action in the name of the Secretary. An employer adjudged in default must pay the costs of the action. Action to collect such contributions must be brought within five years from the date such contributions or payments in lieu of contributions are due, except where an employer has failed to pay contributions or has filed fraudulent reports with intent to evade liability, in which cases such actions may be brought at any time.
A nonresident employing unit which employs one or more persons in Kansas, or a resident employing unit which employs one or more persons in the state and then moves to another state, shall be deemed to appoint the Secretary of State as its agent and attorney for the acceptance of process in any civil action with respect to the collection of contributions.
Records.- The Secretary may require from any employing unit sworn or unsworn reports, with respect to persons employed by it, which are deemed necessary for the effective administration of the Law. Information thus obtained is confidential except to the extent necessary for the proper presentation of a claim or for the performance of duties by federal and state employees.
WHO TO CONTACT
The Kansas Employment Security Law is administered by the Secretary of Human Resources through the Division of Employment Security, Employment Security Bldg., 401 SW Topeka Blvd., Topeka, Kansas 66603-3182. Telephone (785) 296-5029.
RECORDKEEPING
Every employing unit is required to keep true and accurate employment records, containing such information as the Secretary may prescribe. The law specifies that such records must be preserved for a period of five years from the due date of the contributions for the period involved.
The employer's books and records are subject to audit. Audits are usually computer-selected at random from a pool of employer accounts. The audit is for a minimum of one calendar year and can include all five years encompassed by the statute of limitations. Books and records subject to be examined during an audit may include time cards or sheets, specialized payroll books, check stubs and canceled checks, EDP records, general ledgers, the general journal, check register, cash disbursements journal, voucher register, petty cash record, and special corporate records -the minute book, stock register and corporate charter. In addition, certain federal tax forms-W-2, 1099, 940, 941 and business income tax forms-are among the records required.
Only one audit may be made of an employer's records for any given period of time. Upon request, the employing unit must be furnished a copy of all findings resulting from such an audit. However, a special inquiry or special examination made for a specific and limited purpose will not be considered to be an audit for the purpose of these provisions.
POSTING
Each employer must post and maintain an Unemployment Benefit Poster, as well as its certificate of registration as an employer, in a conspicuous place in each plant, branch or establishment it maintains.
See ¶17-9900 for a copy of the poster.
PENALTIES
A penalty of .05% of the total wages paid by the employer during the quarter is assessed for each report or return not filed when due and each month or fraction thereof that a report or return remains unfiled, except that no penalty will be less than $25 nor more than $200 for each such report or return. A fine or imprisonment, or both fine and imprisonment, are provided for each willful violation of the law.
Nonpayment.- If any contributing employer is delinquent in making payments under the employment security law during any two quarters of the most recent four-quarter period, the Secretary or his or her authorized representative will have the discretionary power to require the employer either to deposit cash or to file a bond with sufficient sureties to guarantee the payment of contributions, penalty and interest owed by the employer. The amount of the deposit or bond will not be less than the largest total amount of contributions, penalty and interest reported by the employer in two of the four quarters preceding any delinquency. The failure to file such a cash deposit or bond will subject the employer to a surcharge of 2.0% in addition to the rate of contributions otherwise assigned.
Interest.- Contributions and payments in lieu of contributions unpaid on the date on which they are due and payable bear interest at the rate of 1.5% per month or fraction thereof until payment is received by the Secretary. Interest amounting to less than one dollar on any contribution payment is to be waived by the Secretary. The Secretary may, upon written request and good cause shown, abate any interest or portion thereof accruing upon any contribution due. A newly-subject employer who pays due contributions within 10 days after notification of subject status shall not be liable for penalties or interest.
Any benefit erroneously paid that is not repaid bears interest at the rate of 1.5% per month or fraction of a month. If the benefit was received because of fraud, misrepresentation, or willful nondisclosure of required information, interest accrues from the date of the final determination of overpayment until repayment plus interest is received. If the overpayment was without fraud, misrepresentation, or willful nondisclosure of required information, interest accrues upon any balance that remains unpaid two years after the final determination of overpayment is made and continues until payment plus accrued interest is received.
If any employer neglects or refuses to pay contributions or payments in lieu of contributions after demand, the amount, including interest, will be a lien in favor of the Kansas employment security division upon all property and rights to property, real or personal, belonging to such employer. Such lien will not be valid as against any mortgagee, pledgee, purchaser, or judgment creditor until notice has been filed by the employment security division in the office of register of deeds in the county in which such property is located. When so filed, it will be notice to all persons claiming an interest in the property of the employer against whom filed.
Liens.- If any employer neglects or refuses to pay any contributions, payments in lieu of contributions or benefit cost payments, including interest and penalty, within ten days after notice and demand therefore, the Secretary or his authorized representative may collect such amounts by levy upon all property and rights to property which belong to the employer or which have a lien upon them as discussed above. The authority to levy includes the power of seizure by any means.
Bankruptcy.- In the event of any distribution of an employer's assets pursuant to an order of any court under the laws of Kansas, including any receivership, assignment for benefit of creditors, adjudicated insolvency, composition or similar proceeding, contributions or payments in lieu of contributions then or thereafter due must be paid in full prior to all other claims except claims for wages of not more than $250 to each claimant, earned within six months of the commencement of the proceeding. In the event of an employer's adjudication in bankruptcy, judicially confirmed extension proposal or composition under the Federal Bankruptcy Act, contributions then or thereafter due will be entitled to such priority as is provided in that Act for taxes due any state of the United States.
<p>Bankruptcy.— In the event of any distribution of an employer's assets pursuant to an order of any court under the laws of Kansas, including any receivership, as</p>