K-69: Targeted Employment Credit Schedule (Revision 2024-07)
Kansas · Kansas DOR · Used for tax years 2024, 2025, 2026
Kansas Schedule K-69 calculates the Targeted Employment Credit for qualified targeted employment businesses and taxpayers that outsource work to them. It reports eligible employees, wages, hours worked, and the credit allowed against Kansas tax liability.
Who files this form
Schedule K-69 is for claiming the Kansas Targeted Employment Credit as either:
- A qualified targeted employment business, which completes Parts A, C and D.
- A taxpayer outsourcing work to a qualified targeted employment business, which completes Parts B, C and D.
A targeted employment business must be authorized to do business in Kansas, employ eligible individuals in competitive integrated employment, and pay earned income to an eligible individual during a calendar year. A community service provider does not qualify as a targeted employment business.
An eligible individual must be a Kansas resident employed in a competitive integrated setting, have a developmental disability documented as required by the secretary for aging and disability services, and agree to the required information reporting or sharing. High school students can qualify.
What you'll need
Have the following information ready to complete K-69:
- The tax year's beginning and ending dates, the claimant's name, and Social Security number or EIN.
- The targeted employment business's name, address, county, and Social Security number or EIN.
- For partners, shareholders or members, the entity's name, EIN and proportionate share percentage.
- Each eligible individual's name, Social Security number, job title and description of work performed.
- Each eligible individual's hourly wage, the usual and customary market wage for a similar job, and actual hours worked, excluding paid leave.
- Your Kansas tax liability after all credits other than this credit.
Part D allows additional schedules as needed to list eligible individuals.
Common mistakes
- Including paid leave in hours worked. Column D must include only actual hours worked, rounded to the nearest whole hour.
- Using a wage above the market rate. Column C uses the lower of the employee's hourly wage and the usual and customary market wage for a similar job.
- Claiming more than the remaining tax liability. Line 11 must be the lower of your share of the credit on line 9 or your remaining Kansas tax liability on line 10.
- Expecting a refund or carryforward. This credit is not refundable and cannot be carried forward.
- Using the credit against more than one type of tax. It can be used only once each taxable year against only one of the income, privilege or premium taxes.
Questions people ask
How is the credit calculated for each eligible individual?
Use the lower of the individual's hourly wage or the usual and customary market wage for a similar job. Multiply that rate by actual hours worked, then multiply by 50%. Compare that amount with actual hours worked multiplied by $7.50. The lower amount is the individual's credit in column H.
What percentage should I enter on line 8?
Partners, shareholders and members of pass-through entities enter their proportionate share in the partnership, S corporation, LLC or LLP. All other taxpayers enter 100%.
Where do I report the allowed credit?
Enter the amount from line 11 on the appropriate line of Form K-40, K-41, K-120 or K-130.
Can I get a refund or carry unused credit into another year?
No. The credit is not refundable and cannot be carried forward.
Where can I get help completing K-69?
Contact the Kansas Department of Revenue's Taxpayer Assistance Center at 785-368-8222. Additional copies of the schedule and other tax forms are available at ksrevenue.gov.