Promoting Employment Across Kansas
Promoting Employment Across Kansas (PEAK) allows for-profit qualified companies that are creating net, new jobs in Kansas to retain or receive quarterly refunds for 95 percent of the payroll withholding tax for up to a period of 10 years for the new “PEAK Jobs” that are paying at or above the county median wage. A not-for-profit company that qualifies as a headquarters and is approved by the Secretary of Commerce is also eligible for benefits providing all other program criteria is met.
PEAK is available for full-time and part-time jobs that work 20 hours or more per week, year-round. (See K.S.A. 74-50, 210 through 74-50,219)
The qualifying wage standard is the county median wage or regional North American Industrial Classification System (NAICS) average wage. An average wage for PEAK Jobs may be used to qualify for limited benefits.
In addition, eligible applicants must make available to full-time employees adequate health insurance coverage and pay at least 50 percent of the premium for full-time employees. The Secretary of Commerce is designated to determine the eligibility and approve the benefits of companies qualifying for the PEAK program.
PEAK for new jobs includes two types of projects: Basic and High Impact
- Basic: At the time of application, all PEAK jobs must be paid an aggregate annual median wage of at least 100 percent of the most recently published annual median wage for the county in which the project will locate in Kansas. An average wage for PEAK Jobs may be used to qualify; however, qualifying through the use of the average wage limits the benefits received.
✔A minimum of five jobs (in non-metropolitan counties) or 10 jobs (in designated metropolitan counties of Douglas, Johnson, Sedgwick, Leavenworth, Shawnee or Wyandotte) must be hired within two years from the PEAK agreement date.
✔For a PEAK Basic project, the Secretary can approve up to 7 years for the retention/refund of payroll withholding tax of PEAK-Eligible jobs.
- High Impact: To qualify, companies shall meet the minimum program requirements as outlined above for a Basic project, but firms must also locate a minimum of 100 jobs within two years from the PEAK agreement date. For a PEAK High Impact project, the Secretary can approve up to 10 years for retention/refund of payroll withholding tax of PEAK-Eligible Jobs.
Companies using a median wage equal to or greater than the regional NAICS industry average wage standard to qualify may receive a refund or retain 95 percent of payroll withholding taxes for PEAK-Eligible Jobs, for a period of up to five years, if approved by the Secretary.
The PEAK program also has a limited amount of funds available for qualifying business retention projects. The funding available for PEAK retention projects has been extended through 2018.
PEAK Jobs identified as PEAK-Eligible are excluded from participating in other statutory withholding tax diversion programs, e.g. Kansas Bioscience Authority; however, under certain conditions, the Secretary can approve bioscience companies for participation. Additionally, wages of PEAK-eligible jobs are excluded when computing job tax credits under the research and development tax credit program.
Qualified companies shall not retain or seek a refund of withheld taxes on any PEAK-Eligible Job participating in the Kansas Rural Opportunity Zones (ROZ) Income Tax Credit Program.
Unless qualified as a headquarters or administrative/back office and approved by the Secretary of Commerce, the following NAICS assignments are ineligible: 7132 (Gambling Industries), 8131 (Religious Organizations), Sectors 44 & 45 (Retail Trade), 61 (Educational Services), 92 (Public Administration) or 221 (Utilities including water & sewer services), Subsector 722 (Food Services and Drinking Places); companies delinquent in the payment of taxes to any federal, state and/or local taxing entities; companies under the protection of the federal bankruptcy code are also ineligible.
Companies wishing to participate need to contact and work through a Commerce Field Manager before completing and submitting an application. The Secretary of Commerce is designated to determine the eligibility and approve benefits of companies participating in the PEAK program. Applications are accepted throughout the year and need to be submitted within 180 days of the company’s announcement to Commerce of their decision to locate a business to Kansas.
Applications must be received by Commerce prior to the company hiring the PEAK jobs/employees. Eligible applicants will file quarterly and annual reports to continue eligibility for the program.