If your Kansas corporation pays wages of more than 20,000 dollars a year, yes, it must carry workers compensation, and here is the part that surprises owners: your corporate officers are counted as employees by default, so they are covered unless they qualify to opt out. That is the mirror image of the rule for sole proprietors, partners, and LLC members, who are off by default and elect in. And because a corporation has no family of its own, the family-wage break that helps a sole proprietor does not apply, so essentially every dollar of corporate payroll counts toward the line.
Who this is for: Owners of a Kansas for-profit corporation, whether a C-corp or an S-corp, from a single-officer company to a corporation with a full payroll.
The short version
- A corporation must carry workers comp once its payroll passes 20,000 dollars a year.
- Executive officers are counted as employees and covered by default in Kansas.
- Only an officer who owns 10 percent or more of the stock can file to opt out, before any injury.
- An officer who owns less than 10 percent cannot opt out and stays covered.
- Officer pay is employee wages, so it counts toward the 20,000 dollar threshold.
Why officers are covered by default
Kansas lists executive officers of corporations within its definition of a covered employee, so a policy covers your officers automatically. The only way out is narrow: an officer who owns 10 percent or more of the corporation's outstanding stock may file a written declaration, before any injury, electing not to accept the Act. That election is made on the Division's form K-WC 50 and can later be cancelled with form K-WC 50-A to bring the officer back in. An officer who owns less than 10 percent has no opt-out and remains a covered employee. This is exactly backward from how the state handles LLC members, partners, and sole proprietors, all of whom start off the policy and elect in.
What applies to your corporation
| Your setup | Is comp required? | Officer coverage |
|---|---|---|
| Corporation with payroll over 20,000 dollars | Yes | Officers covered by default |
| Officer who owns 10 percent or more | Yes, for the employees | May opt out with form K-WC 50 before injury |
| Officer who owns less than 10 percent | Yes | Cannot opt out; stays covered |
Opting out, and what it means
Because an officer is on the policy by default, opting out is a deliberate step available only to a 10 percent owner. You file form K-WC 50 with the director before any injury, and until it is on file the officer stays covered. Opting out means no comp for that officer's own on-the-job injuries, so you would need another plan for that risk, and you can reverse it later with form K-WC 50-A. If a covered officer keeps their coverage, the premium counts their pay, and we check whether opting your qualifying officers in or out lines up with how you actually pay yourselves and how much personal injury risk they carry on the job.
An Overland Park example
Illustrative, not a quote. An Overland Park manufacturing company is an S-corp with two owner-officers, each holding half the stock, and eight production employees. The payroll is well over 20,000 dollars, so the eight employees must be covered. Both officers own far more than 10 percent, so each could file form K-WC 50 to opt out, but because they work on the floor and want protection if hurt, they stay on the policy. We make sure their hands-on duties are rated correctly so the premium is fair. See our workers comp for manufacturers page.
Real questions Kansas owners ask
Does my Kansas corporation need workers comp?
Once its payroll passes 20,000 dollars a year, yes. And because Kansas counts corporate officers as employees, officer pay counts toward that line, so even a small corporation can be over the threshold through its own officers.
Am I covered as a corporate officer in Kansas?
By default, yes. Kansas treats a corporation's executive officers as covered employees, so you are on the policy unless you own 10 percent or more of the stock and file form K-WC 50 to opt out before any injury.
How is this different from an LLC or sole proprietor?
It is the opposite. Corporate officers are covered by default and only a 10 percent owner can opt out, while LLC members, partners, and sole proprietors are off by default and elect in. Owners mix these up constantly.
Can any officer opt out to save money?
No. Only an officer who owns 10 percent or more of the corporation's stock can opt out, and only by filing form K-WC 50 before an injury. An officer who owns less than 10 percent cannot opt out and stays covered.
How do I opt an officer out, and can I undo it?
The qualifying officer files form K-WC 50 with the director of workers compensation before any injury. It can be cancelled later with form K-WC 50-A, which brings the officer back into coverage.
Does officer pay count toward the 20,000 dollar threshold?
Yes. Because officers are employees in Kansas, their pay is employee wages and counts toward the payroll line. A corporation also gets no family-wage break, so essentially all of its payroll counts.
What is the difference between workers comp and employers liability?
Workers comp pays an injured employee's medical bills and lost wages under the state system. Employers liability, usually built into the same policy, covers the business if it is sued over a work injury outside that system.
Why Kansas owners choose Morrow
- We shop the right market for you. In Kansas you buy workers comp on the open, competitive market from any private insurer licensed in the state, because there is no state fund, and if no carrier will take you the state's assigned risk plan, run by the national rating bureau, is the guaranteed backstop, so we can shop your rate freely and still have a fallback for hard-to-place work.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related Kansas guides
Every Kansas business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in Kansas (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Hiring your first employee: what changes
- Workers comp vs employers liability
- Kansas manufacturer workers comp
This guide is general information, not legal advice. Kansas rules and penalty amounts can change, so verify current requirements with the Kansas Department of Labor, Division of Workers Compensation or a licensed advisor before you rely on them. Last updated: July 2026.