The creation of the Promoting Employment Across Kansas (PEAK) Act, K.S.A. 2015 Supp. 74-50,210 through 74- 50,219, was created by the 2009 Kansas Legislature. PEAK is intended to foster economic development in Kansas by incentivizing companies to relocate, locate, expand or retain a business facility/operations and related jobs. The Secretary of Commerce (the Secretary) has discretion to deny or approve applications of qualified companies. The PEAK benefit and term are based upon the number of PEAK Jobs/Employees to be hired, their wage levels and other economic impact variables of a project. The PEAK benefit is a fixed amount spread equally and capped annually over a benefit term of up to 10 years. During the benefit term, participating PEAK companies may retain or be refunded 95 percent (95%) of the state withholding tax of PEAK-Eligible Employees that are paid at or above the county median wage where the PEAK business facility is or will be located.
PEAK requires within a two-year period, five new PEAK Jobs in non-metropolitan counties or ten (10) new PEAK Jobs in the metropolitan counties of Shawnee, Douglas, Wyandotte, Johnson, Leavenworth and Sedgwick. Aggregate wages of the PEAK Jobs must meet or exceed the county median wage (CMW) or North American Industry Classification System (NAICS) average wage for their industry. Applicants meeting program requirements may include for-profit companies and not-for-profit headquarters. Qualified applicants also must: 1) offer an adequate health insurance policy (see Definitions) to its full-time employees within 180 days of hire and be paying at least 50 percent of the employee’s premium; 2) not owe undisputed federal, state or local taxes; and 3) not be seeking protection under the federal bankruptcy code.
Wages of PEAK-Eligible Employees may not be considered when computing the research and development tax credit (K.S.A. 79-32, 182b). Also, PEAK-Eligible Employees who apply for the Rural Opportunity Zones (ROZs) income tax credit/waiver program would not be eligible to have their withholding taxes retained by or refunded to the qualified company for the PEAK benefit.
Companies must work with a Commerce regional project manager to apply to the PEAK program. Applications are accepted throughout the year and must be received PRIOR to hiring PEAK Employees in Kansas and within 180 days of announcing to Commerce their decision to relocate, newly locate, expand or retain jobs in Kansas.
***Please see the “Definitions” section of these Guidelines for PEAK terms used in this document.***
Reporting instructions and examples of the Quarterly Report and biennial Verification Report are available on the PEAK web page at www.kansascommerce.gov/peak.
Please contact an a Business Recruitment, International or Regional Program Manager to discuss your company’s eligibility for the PEAK Program or call 785.296.5298 for more information on Commerce programs.
Contact Brett Sayre at Brett.Sayre@ks.gov for PEAK application questions or to check the status of an application review.
ATTN: PEAK Program
Business & Community Development Division
Kansas Department of Commerce
1000 SW Jackson Street, Ste 100
Topeka, KS 66612-1354
“Adequate” Health Insurance Contract Plan Coverage: The Company will offer an adequate health insurance contract plan to full-time employees, working 35 hours or more weekly, within one hundred eighty (180) days from the date of employment. Minimum health insurance policy coverage will include: 1) hospital care, 2) physician care, 3) mental health care, 4) substance abuse treatment, 5) prenatal and postnatal care, and 6) prescription drugs. Additionally, the company shall pay at least 50 percent of the full-time employee’s insurance plan premium.
Administrative Office: Administrative office means a business facility that meets all of the following requirements: 1) the main activities are to support the core focus of the business; 2) support activities are performed for other majority-owned company entities; 3) the facility serves multiple permanent majority-owned company facilities with at least two permanent majority-owned or affiliated facilities located outside Kansas; and 4) the facility could have been located anywhere geographically.
Affiliated Facilities: Affiliated facilities means a business entity having a common parent with a qualified company.
Agreement Date: Agreement date means the date PEAK Employees are authorized by the secretary to be moved to, hired at or retained by a qualified company at a business facility. The Agreement Date is generally the date Commerce receives a PEAK application and appears in the upper right-hand corner of a PEAK agreement. The Agreement Date is the date the company entered into the PEAK agreement. The company has two years from this date to hire the minimum required jobs for the program. The company has five full calendar quarters from this date to establish an Effective Date unless constructing a new facility or substantial renovation.
Application Date: The later of 1) The date Commerce receives the company’s PEAK application; or 2) the date Commerce receives the associated payment.
Base Employment or Base Employment Level: Initial base employment for the application is the greater of: 1) the average number of employees that existed at the PEAK business facility during the four full calendar quarters before the application date; 2) the number of employees that existed at the PEAK business facility on the application date; or 3) the number of employees that existed at the PEAK business facility the month prior to the application date.
Benefit Term: The benefit term is approved by the Secretary of Commerce and is the timeframe during which the company will be allowed to receive PEAK benefit. The Benefit Term commences on the Effective Date and is subject to change based on the company’s annual performance and satisfaction of required program criteria.
Benefit Year: Means each four consecutive calendar quarters commencing on the Effective Date for the term of the PEAK Agreement.
County Median Wage (CMW): Annually, this wage data is compiled by the Kansas Department of Labor (KDOL) from information obtained from the Kansas Wage Survey for the federal Bureau of Labor Statistics. The county median wage table is updated annually around August/September. Once an agreement is signed, this wage standard remains the same over the term of the Agreement.
Effective Date: The Effective Date commences the PEAK Benefit Term, quarterly and annual reporting. The Effective Date is designated in writing by the company to Commerce; and is within five full calendar quarters from the PEAK Agreement Date commencing on the 1st day of a calendar quarter. Effective Dates must be approved by Commerce.
Headquarters: Headquarters means a business facility that meets all of the following requirements: 1) the main activity at the facility is providing direction, management or administrative support for multiple majority-owned company entities; 2) the facility serves multiple permanent majority-owned company facilities with at least two permanent majority-owned or affiliated facilities located outside Kansas; and 3) the facility is capable of being located anywhere geographically.
Kansas Department of Labor (KDOL) K-CNS 100: Kansas companies that have employees are required per K.S.A. 44-710 to report wage data to the KDOL on a quarterly basis for unemployment insurance purposes. The K-CNS 100 form is used to report this quarterly data. For companies having multiple Kansas worksites reporting on one K-CNS 100, corresponding federal Multiple Worksite Report(s), Form BLS 3020, will be required.
Kansas Hire or Start Date: The initial date that a PEAK Employee commences work at a Kansas facility (for Relocation and New Location projects) or, in some instances, the date an existing employee moves into a PEAK Job.
Materially Participating: A taxpayer is materially participating in business operations if he or she works on a regular, continuous and substantial basis. See Attachment F(1) of this application or visit the IRS website to see if an owner meets the criteria of “materially participating” in a business.
PEAK-Eligible Employee: PEAK-eligible employee means a PEAK employee that is receiving compensation at an hourly rate equal to or in excess of the county median wage or NAICS industry average wage, as designated by the PEAK agreement, during the applicable reporting period. The qualified company may retain or receive a refund of 95 percent (95%) of the PEAK-eligible employee’s lawfully allowed state withholding tax. Employees who participate in the Rural Opportunity Zones (ROZs) Income Tax Credit/Waiver program may be counted as a PEAK Job, but would not be eligible to have their state withholding tax retained by or refunded to the company for the PEAK benefit.
PEAK Eligible Job: A job filled by a PEAK-Eligible Employee.
PEAK Employee: PEAK Employee means an employee that: 1) works an average of at least 20 hours per week during the reporting period; 2) performs a Qualified Function(s) for a PEAK Business Facility; 3) appears on the Qualified Company’s K-CNS 100 Form during the reporting period; and 4) is subject to Kansas W-2 withholding tax.
PEAK Job: A job filled by a PEAK Employee.
PEAK Jobs’ Median Wage: PEAK jobs’ median wage means the middle hourly wage of the total number of wages, half having wages above the median wage and half having wages below the median wage. The PEAK Jobs’ Median Wage is used to determine initial eligibility for benefits, continued eligibility, and length of Benefit Term. The lowest annual PEAK Jobs’ median hourly wage as reported on Attachment B in the PEAK application is used to compare to the county median wage or regional NAICS industry average wage to determine initial eligibility and approval into the PEAK program. Annually, the PEAK Jobs’ median wage as reported quarterly during the Benefit Year will be averaged to determine performance that may affect the PEAK Benefit and Benefit Term. Use of a PEAK Jobs’ average wage may be approved by the Secretary under certain conditions.
Third-Party Employer: An entity which provides employees and performs services for a qualified company on a contractual basis (often referred to as a “Professional Employer Organization” or PEO.) The third-party employer contracts with the applicant company to perform services whereby the third-party serves as the legal employer of the PEAK employees and such services are performed in Kansas. When contracting with a third-party, the third-party is responsible to remit payments to the qualified company equal to the amount of Kansas withholding tax that is eligible as PEAK Benefit and report such amount to Revenue as required. The third-party employer will be required to enter into a PEAK Agreement along with the qualified company and Commerce.
Wages: “Wages” means compensation for services paid by the qualified company that is reported on the W-2 form of a PEAK employee, and includes, but is not limited to: 1) commissions; 2) overtime; 3) bonuses; and 4) individual income tax deferrals for retirement plans, health savings and flexible spending accounts, and insurance premiums.
Questions 1-4. Provide the legal name of the company you wish to be named on the PEAK Agreement and other data as requested.
Questions 5-9. Provide the legal name of the new or existing Kansas company, street address and other data as requested. If the applicant company is a “pass- through” entity on Question 9. complete Attachment F & F(1) if applicable and submit with application.
Question 10. Please check the appropriate box and provide any additional information as requested.
Question 11. Describe the new, relocating or expanding operation(s) & function(s) at the facility in Kansas.
Question 12. Describe the company’s overall products or services, type of customers and geographic markets.
Question 13. Provide the date that the first PEAK Job will be relocated, hired or retained in Kansas.
Question 14. Provide the Effective Date your company would like to begin retaining or be refunded PEAK benefit beginning on the first day of a calendar quarter.
Question 15. Check one box to elect to: a) retain PEAK benefits “as you go;” or b) remit PEAK Employees’ withholding tax to KDOR and receive a quarterly refund.
Question 16. Please check the appropriate box. If “yes,” attach a copy of the service agreement between the company and the third-party employer.
Question 17. Please check the box of the type of PEAK wage standard that the company is using to qualify.
Questions 18 - 20 & Section B. First, complete Section B by listing all PEAK Jobs and hire dates in ascending order of wage. From this, calculate and provide the number of jobs and total payroll for Q. 18 & 20. The number of PEAK jobs must be equal to or greater than the commitment in the Commerce incentive proposal.
Question 18. From Section B, provide the total number of PEAK Jobs to be created or retained in each year for five years. a) Of the total number of PEAK Jobs, provide how many will be PEAK-Eligible.
Question 19. Provide the PEAK jobs median wage per the Commerce incentive proposal. This is the number which will be included in the final agreement with a 10% safe harbor.
Question 20. From Attachment B, provide the total annual payroll for all PEAK Jobs over five years.
Question 21 & 21a. Provide the base employment that will be located with the qualified function(s) and PEAK Jobs, attaching your last four KDOL K-CNS 100 quarterly wage reports to verify your response. Q. 21a) Please note whether base employment includes seasonal employees.
Question 22. Companies may apply for the Secretary’s approval as: 1) a headquarters or administrative office if they have a non-qualifying NAICS; or 2) a headquarters if a not-for-profit. Check the appropriate box and complete Attachment C or D.
Question 23. Check the appropriate box(es) and provide a copy of the company’s health plan benefits summary documenting proof of coverage for physician care, basic hospital and procedures care, pre- and post-natal care, mental health care, substance abuse treatment and prescription drugs. Also document the company pays at least 50% of full- time employee’s health plan premium.
Question 24. Check the appropriate box and provide written verification.
Question 25. Check the appropriate box.
Question 26. Check the appropriate box and attach a copy of your Tax Clearance Certificate.
Question 27. Provide the requested data if using a payroll service company.
Question 28. For retention projects only, answer as requested.
Question 29. Please have an authorized company officer sign (required), date and return a copy of Attachment E. Pay non-refundable $750 application fee for each applicant entity.
Basic Hospital & Procedures Care
Mental Health Care
Substance Abuse Treatment
Certification:To the best of my knowledge and belief the information on this application is true, correct, and complete. If the business fails to report or pay appropriate state taxes, any individual who is responsible for the tax authorizes the Secretary of Revenue or his/her designee to research the credit history of the business or that individual.
If you need to include additional owners, partners or corporate officers, download our additional entries form and upload it below once completed.
To help us determine if you materially participate in the PEAK qualified company, did or will you:
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