Hi Everyone. I'm hoping there are some preparers from Kansas City in the forum. I know that KC earnings tax applies to the cost of group term life insurance for employees, but what about after the person retires? The client receives a W2 for the cost, with amounts in box 1 wages and box 12 code C. Any thoughts? Thank you!
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Just an update in case anyone else runs into this... I called the KC Dept of Revenue and they said the cost of group term life insurance is subject to the 1% KC earnings tax even after someone retires. They consider this deferred compensation, taxable because the taxpayer either worked or lived in KC when the income was earned.
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