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State withholding requirements are based on the place of employment.
Thus - if actual work will be performed in Kansas - compensation will be classified as from Kansas sources and will be taxable for that state - and subject to withholding.
As residents of Michigan - your employees will be subject to Michigan income tax regardless of the source of income. However because the same income is already taxed in Kansas - they would be able to claim a credit for taxes paid to other state on their Michigan resident income tax returns - thus effectively will avoid double taxation of the same income.
Depending on personal circumstances - some might have additional Michigan income tax liability at the tax time - but that liability will likely be very minimal.
However - filing Michigan tax returns and paying additional personal income taxes (if any) - that would be responsibility of each employee.
as long as none of work is done in Michigan - and wages are paid for services provided in Kansas only - your responsibility as an employer is to withhold Kansas state income tax only.
When you will have employees working in different states - you would need to track separately wages paid for working in each state - according to each state law and regulations.
SUI taxes are paid ONLY to one state. That must be teh state where an employee works most of the time - that determines the primary place of employment.But if your employees are working in Kansas only - then - yes - SUI are paid to that state.
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