Kan. Admin. Regs. § 110-6-8 - Definitions
As used in this article and for purposes of administering HPIP, the following terms shall have the following meanings:
(a) "Alternative wage standard" means one and
one-half times the state average wage and is updated annually on the
department's web site, based on data maintained by the Kansas secretary of
labor. An alternative wage standard may be used only after subtracting all
employees with five percent equity in the business from all internal wage
calculations, as provided by
K.S.A.
74-50,131(e) and amendments
thereto.
(b) "Applicant" means a
legal entity seeking to certify a qualified firm through the HPIP application
process.
(c) "Average internal
wage" means the wage computed for the employees attached to a worksite and
shall be calculated by one of the following methods:
(1) Dividing the average headcount of
part-time plus full-time employees at the worksite as reported on the
"quarterly wage report and unemployment tax return" or "multiple worksite
report" for the measurement period into total payroll costs that have been paid
over the same measurement period; or
(2) dividing the number of FTE employees into
total payroll costs that have been paid over the same measurement
period.
(d) "Back-office
operation" means a wholly owned company worksite location that meets all of the
following criteria:
(1) The main activities
are functions that support the core focus of the business.
(2) Support activities are performed for
other company-owned worksites in which the company has more than 50 percent
equity.
(3) The worksite could have
been geographically located anywhere.
(e) "Certificate of intent to invest" means a
project description form.
(f)
"Certification period" means the interval during which a worksite is eligible
to receive HPIP benefits according to K.A.R. 110-6-11.
(g) "Combined worksite" means two or more
worksites referenced on the same application according to K.A.R.
110-6-11.
(h) "Commence investment"
means to make a formal commitment and to invest, with both actions being
directly connected to the project description form previously submitted to the
department.
(i) "Commercial
customer" means an organized entity that engages in the manufacture or sale of
products or the provision of services to other entities or
individuals.
(j) "Core focus" means
an activity that is designated by the NAICS code number assigned to a company
and produces more than 50 percent of a company's revenue.
(k) "Department" means Kansas department of
commerce.
(l) "Formal commitment to
invest," for a company, means one or both of the following:
(1) The company relocates assets that it
already owns to Kansas from an out-of-state location.
(2) The company enters into a written
agreement that provides either party with legally enforceable remedies if the
agreement is breached.
(m) "Fully operational," when used to
describe a new worksite, means that the worksite is performing substantially
all major core focus functions.
(n)
"Full-time-equivalent employees" and "FTE employees," for purposes of
calculating internal average wage during a measurement period, shall include
leased employees and shall be computed by the following method:
(1) The number of hours worked by any
permanent employees who normally work fewer than 40 hours per week shall be
totaled and then divided by 2,080 hours, dropping any fractions.
(2) The result of paragraph (n)(1) then shall
be added to the average number of employees who normally worked 40 or more
hours per week during the measurement period.
(o) "Government customer," as used in the
act, means an organization that is not a related taxpayer, as defined by
K.S.A.
79-32,154(h) and amendments
thereto, and meets one of the following conditions:
(1) Is classified in major NAICS code
sections 922 through 928; or
(2) is
a customer that is funded primarily with tax dollars and is not classified as a
for-profit or a not-for-profit organization.
(p) "Gross revenues," as used in
K.S.A.
74-50,131 and amendments thereto, means that
term as commonly used in financial and accounting applications under generally
accepted accounting principles (G.A.A.P) in the United States.
(q) "Headquarters," as used in
K.S.A.
74-50,131(g)(6) and
amendments thereto, means a worksite that meets all of the following
conditions:
(1) The main activity at the
worksite is providing direction, management, or administrative support for the
operation of multiple company-owned worksites in which the applicant company
has an ownership interest greater than 50 percent.
(2) The worksite is capable of being
geographically located anywhere.
(r) "High-performance incentive program" and
"HPIP" mean the department's incentive program that may provide tax benefits to
a worksite pursuant to
K.S.A.
74-50,131 and amendments thereto.
(s)
(1)
"HPIP source-of-revenue requirement" means the requirement for the types of
businesses listed in
K.S.A.
74-50,131(b), and amendments
thereto, that more than 50 percent of total revenue at the worksite shall be
generated from sales to any of the following:
(A) Kansas manufacturers assigned to major
NAICS categories 311 through 339;
(B) out-of-state government
customers;
(C) out-of-state
commercial customers; or
(D) any
combination of paragraphs (s)(1)(A) through (C).
(2) Revenues that shall be specifically
excluded as eligible revenues under the HPIP source-of-revenue requirement are
the following:
(A) Revenues generated as
payment for medical services from Medicare, Medicaid, or any related
administrative organizations; and
(B) revenues generated from medical services
or products delivered to or used by individual patients, regardless of the
source of payment.
(t) "KIT" means Kansas industrial training,
as defined in
K.S.A.
74-5065(a) and amendments
thereto.
(u) "KIR" means Kansas
industrial retraining, as defined in
K.S.A.
74-5065(b) and amendments
thereto.
(v) "Leased employees"
shall include employees who meet the following criteria:
(1) Are engaged at the worksite pursuant to
an agreement with a third party;
(2) are filling positions that are one year
or longer in duration; and
(3)
receive wages and benefits that are paid either directly or indirectly by the
worksite where the leased employees are engaged.
(w) "Main activity" means an activity that
utilizes more than 50 percent of the total square feet at a worksite or more
than 50 percent of the total number of employees at a worksite.
(x) "Measurement period" and "MP" mean the
four consecutive calendar quarters that a company shall use to meet and
document satisfaction of the HPIP eligibility requirements.
(1) For a worksite expansion with an existing
workforce, the MP shall be the four calendar quarters that immediately precede
the selected certification period.
(2) For a new worksite with a new workforce,
the MP shall be the first full four consecutive calendar quarters of operation
at the new worksite.
(y)
"Multinational corporation" and "multinational firm" mean a legal entity with
at least one permanent worksite in the United States and one or more additional
permanent worksites established in one or more other countries, with attendant
personnel and owned or leased facilities, equipment, and
infrastructure.
(z) "NAICS
designation" means a six-digit designation in the North American industry
classification system that identifies the main activities performed at a
worksite. The NAICS designation is initially assigned to a worksite by the
Kansas department of labor. At the request of the applicant, the Kansas
department of labor's NAICS designation may be reviewed and adjusted by the
secretary, if deemed appropriate, based upon the actual activity at the
worksite.
(aa) "National
corporation" and "national firm" mean a legal entity that has operations
covering a broad geographical area within the U.S., with multiple permanent
worksites wholly owned or affiliated with other legal entities, with attendant
personnel and owned or leased facilities, equipment, and
infrastructure.
(bb)
"Nonmanufacturing business" means any commercial enterprise other than a
manufacturing business assigned to major NAICS categories 311 through
339.
(cc) "On-the-job training" and
"OJT" mean training situations during which a product or service that can be
sold or used in internal operations is generated.
(dd) "Project description form" and "PD form"
mean a form required as the first step to be able to access HPIP benefits. This
form provides proof of foreknowledge of the HPIP program and shall be
completed, signed, and submitted to the department before any formal commitment
to invest.
(ee) "Qualified business
facility investment" has the meaning specified in
K.S.A.
79-32,154, and amendments thereto.
(ff) "Related taxpayer" has the meaning
specified in
K.S.A.
79-32,154, and amendments thereto.
(gg) "Sales to Kansas manufacturers," as used
in the act, means sales to organizations that are not related taxpayers, in
which the purchased goods or services are paid for by the purchasing
organization or its designated agent and the purchased goods or services are
delivered within Kansas to a worksite assigned to major NAICS categories 311
through 339 by the Kansas department of labor. Sales orders and payments may
originate from either inside or outside Kansas.
(hh) "Secretary" means secretary of
commerce.
(ii) "Total payroll cost"
means the payroll amount defined by the Kansas department of labor as "total
wages" on line 12 of the "quarterly wage report and unemployment tax return" or
the "multiple worksite report." For a worksite, total payroll cost during the
appropriate measurement period may be combined with any pretax earnings in
which an employee has elected to direct to one of the following:
(1) A flexible-spending plan;
(2) a deferred compensation plan;
or
(3) a retirement plan that
includes earnings the employee would otherwise have received in the form of
taxable wages had it not been for the voluntary deferral.
This term shall not include company-paid costs for health insurance, dental insurance, and any other employee benefits that are not reported to the Kansas department of labor on the employer's quarterly wage report or the multiple worksite report.
(jj) "Training and education eligible
expense" means the amount actually paid for training and education of the group
of employees, or portion thereof, that is used to determine the average wage at
the worksite location, and from which the worksite expects to derive increased
productivity or quality. The determination of expenditures that constitute
training and education eligible expenses shall include the following:
(1) Eligible training and education
expenditures shall include instructor salaries, curriculum planning and
development, travel, materials and supplies, textbooks, manuals, minor training
equipment, certain training facility costs, and any other expenditure that is
eligible under KIT or KIR.
(2) The
following other expenditures shall be allowable but shall be subject to maximum
caps:
(A) Wages of employees during eligible
training, up to a maximum of 400 percent of the applicable HPIP alternative
wage standard hourly wage;
(B)
employee instructors' salaries, subject to a maximum of 400 percent of the
applicable HPIP alternative wage standard hourly wage; and
(C) training-related travel expenses, with a
maximum meals allowance of $120 per day and lodging costs of $300 per
night.
(3) Expenditures
for the following shall be excluded as training and education eligible
expenses:
(A) Compensation paid to an employee
trainee who is receiving on-the-job training;
(B) compensation paid to an employee during
self-training, except for time in which the employee is involved in activities
related to an approved computerized course of study;
(C) bonus pay received as compensation
related to the company's financial performance or the employee's job
performance, or both;
(D) overtime
pay, unless the employee is being paid at an overtime rate while participating
in eligible training;
(E)
operations manuals and reference manuals. However, training-specific manuals
shall be allowable; and
(F)
training and education costs covered by monies or grants obtained from state,
federal, or other government-sponsored workforce training programs.
(kk) "Wage standard"
means the average wage information developed for the department for the
appropriate NAICS designation using all worksites located within a geographical
area as defined by the secretary that are required to provide the Kansas
department of labor with a "quarterly wage report and unemployment tax return"
or a "multiple worksite report."
(ll) "Worksite" has the same meaning as that
specified for "qualified business facility" in
K.S.A.
79-32,154, and amendments thereto.
Notes
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