Employer's Obligations for Arkansas State Payroll Taxes
- Updated on Feb 15, 2023 - 11:00 AM by 123PayStubs TeamUse 123PayStubs to know your tax liabilities for the pay period and also to generate the paystubs for your employees and contractors in Arkansas.
You can calculate taxes and generate pay stubs for both the salaried and hourly employees.
Just enter the basic details like company information, employee, and earnings information to get started. Our Arkansas paystub generator will do all the math for you and generates paystub with accurate calculations.
Also, 123PayStubs provides information about the payroll requirements for the state of Arkansas.
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What Employers should know about the Arkansas State Payroll Taxes?
123PayStubs will be suitable for those who are doing payroll on their own. 123PayStubs covers all the information required for Arkansas state withholding taxes and provides you with the exact details to keep payroll under your control.
Apart from the federal withholding, employers in Arkansas are also responsible for certain state payroll tax requirements which are listed below.
Table of Contents
Arkansas State Minimum Wage Requirements
The minimum wage requirements for the state of Arkansas is $10.00 per hour for 2020.
The Arkansas Minimum Wage Act covers employers with 4 or more employees. Employers covered by the federal Fair Labor Standards Act (FLSA) are also covered by the Arkansas law if they have 4 or more employees. An employer covered by both laws must pay the highest minimum wage.
In most cases, an employer has to pay overtime (one and one-half times the regular rate of pay) to non-exempt employees for all hours actually worked in excess of 40 hours in a workweek. This means that your employee may work more than 8 hours in a day or work more than a regularly scheduled shift, and still not exceed 40 hours of actual work in a workweek.
If you pay your employees for hours not actually worked, such as for a holiday or a sick day, then those hours do not count as hours actually worked for the purpose of state and federal overtime law.
Arkansas State New Hire Reporting
Employers are required to file a new hire report with the state agency within 20 days of hiring the new or rehired employee.
They can report new hires either online or through the paper.
The state of Arkansas does not require employers to complete New Hire Reporting for contractors.
Non-Electronic Reporting:
Employers can either use a printed list or Form W-4 for reporting new hires in offline mode.
Printed List - If your software is unable to export your new hire information in the state specified electronic format, you would have to create a printed list containing your new hire data with a font size of 10. The list should have the employer's name, Federal Employer Identification Number, and address displayed at the top of the report.
Employers may download, print, fill out, and fax or mail the New Hire Reporting Form to the address below:
P.O. Box 2540
Little Rock, AR 72203
Toll-free: (800) 259-3562
W-4 Form - If you choose to submit a W-4 form as a new hire report, please ensure that each W-4 is easily readable and has the employer's name, Federal Employer Identification Number, and address written at the top of each form.
Online Reporting
Use the link below to report new hires electronically.
https://newhire-reporting.com/AR-Newhire/EmpReg.aspxElectronic Reporting:
Employers can send new hire data files in various ways, including transferring data through the website, electronic transfer via modem (EFT), or can mail reports to the Arkansas Reporting Center. This feature provides a printable confirmation of reports received and is available 24 hours a day, 7 days a week.
Arkansas State Withholding Taxes
- The employer should get the Form AR4EC from their employees (Employee's Withholding Tax Exemption Certificate) to determine the taxable income of their employees apart from the federal Form W-4.
- Arkansas state tax rate for supplemental wages is 6.6%
Arkansas State Unemployment Insurance Tax (SUI)
- Arkansas SUTA wage base limit for 2020: $7,000
- Arkansas SUTA tax rates for 2020: The tax rates range from (0.1% – 14%), including a stabilization tax of 0.2%
- Arkansas SUTA tax rates for new employers: 2.9%
Other Arkansas State payroll Requirements
Arkansas Termination Pay: If a company or corporation terminates an employee, the employee’s wages are due by the next regular payday. If the employer fails to make payment within 7 days of the next regular payday, then the employer shall owe the employee double the wages due.
Remit withholding for child support to
P.O. Box 8125
Little Rock, AR 7220
When Are Arkansas State Payroll Tax Payments Due?
The tax deposits that have the employer contribution, such as State Unemployment Insurance (SUI), are due for each quarter.
In addition to this, there are due dates for monthly and annual remittance of taxes withheld. Monthly filers must file Form AR941M on or before the 15th day following the reporting period.
Annual filers must file Form AR941A (Employer’s Annual Withholding Report) on or before January 31 following the close of the reporting year.
Arkansas State Deposit Requirement
Employers and withholding agents must register with the Withholding Tax Section by filing Form AR1R (Combined Business Tax Registration) and mailing to:
P O Box 8123
Little Rock, AR 72203
There are three (3) types of Withholding Tax accounts.
- Withholding Wage
- Withholding Pension
- Withholding Pass Through
Each account will be given a different account ID. You are required to use the correct account ID for each account. Maintain a copy of the registration for your file.
Monthly Deposit Requirement
- Monthly filers must file Form AR941M (Employer’s Monthly Payment voucher) and remit the taxes withheld for the month on or before the 15th following the reporting period. All new registrations are classified as “monthly filers” and will report accordingly until notified by the Commissioner of Revenue of any change in classification. A zero payment voucher is required when no taxes are withheld for a month.
- If a due date falls on a Saturday, Sunday or a legal holiday, the return must be filed on the next succeeding business day.
Annual Deposit Requirements
- The Withholding Tax Section will reclassify accounts to an annual filing status (once an account has established a filing history) if the tax deposits are less than $1,000.00 in a reported period.
- Annual filers must file form AR941A (Employer’s Annual Withholding Report) and send remittance on or before January 31 following the close of the reporting year. A zero payment voucher is required for an annual filer where no taxes were withheld.
Payroll Tax Deposit Vouchers
Employers are required to mail Forms AR941M (Employer’s Monthly Payment voucher) and AR941A ((Employer’s Annual Withholding Report) to:
P.O. Box 9941
Little Rock, AR 72203-9941
Quarterly Payroll Tax Filings
Arkansas does not support quarterly filing.
Annual Payroll Tax Filings
Form AR3MAR is the Annual Reconciliation of Monthly Withholding, which must be completed and remitted by February 28 of the year immediately following the tax year employers are filing.
Employers can file Form 1099-MISC for their contractors electronically, or they can mail the form to the following mailing address:
Withholding Tax
PO Box 8055
Little Rock, AR 72203
123Paytubs is more than a pay stub generator.
No matter which part of Arkansas your business operates in, our Arkansas paystub generator will let you create pay stubs for your employees and contractors with accurate tax calculations including all cities like Little Rock, Fort Smith, Fayetteville. You only have to provide a few basic information such as company, employee and salary details and our pay stub generator will calculate all the applicable taxes swiftly based on the information provided. It will take less than 2 minutes to generate a pay stub. Employees and contractors in Arkansas can use the pay stubs as proof of income.
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