Arkansas Payroll Tax And Labor Laws

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Did you know that Texarkana, Arkansas enjoys specific border city-state tax exemptions? Is it true that some Arkansas executives and administrative workers are exempt from the state’s minimum wage law?

Arkansas Wage and Hour Laws​​

Arkansas’ minimum wage legislation mandates that employees be paid $11.00*** per hour. The federal minimum wage is $7.25 per hour for employees covered by the Fair Labor Standards Act.

Except for those specifically exempted by statute, all employees of employers with four or more employees are covered:

• personnel who work in executive, administrative, or professional roles;

• volunteers in educational, philanthropic, religious, or nonprofit institutions;

• pupils employed by the schools in which they are enrolled;

  self-employed individuals; and

• farm employees for firms who did not use more than 500 worker-days of agricultural labor in any quarter of the previous year

Arkansas Payroll For Employers

Arkansas Unemployment:

Taxable Wage Base ($000s):                        10,000

New Employer Rate (% Taxable Wages)    3.1**

Employee Tax Rate (% Taxable Wages)     None

Arkansas Income Tax Withholding

Employers must withhold state income tax from employees’ wages and remit the amounts withheld to the Arkansas Department of Finance and Administration, according to state law.

Residents in Texarkana, Arkansas, and Texarkana, Texas, are eligible for special border city exemptions. Residents of Texarkana, Arkansas, are exempt from Arkansas income tax and withholding, but they must file an income tax return and furnish Form AR-TX to their employers to prove their residency and exemption from tax withholding.

Residents of Texarkana, Texas are exempt from Arkansas income tax and withholding on wages earned in the city, but must pay Arkansas tax on wages earned elsewhere in the state. Other Texas residents must pay taxes on any wages made in Arkansas, regardless of where they live.

How do I report new hires to the state?

• Report new hires online
• Fax or mail Arkansas New Hire Reporting Form
• Arkansas New Hire Reporting Center
  PO box 2540
  Little Rock, AR 72203
  Fax: 1‐800‐259‐3562
  Phone: 1‐800‐259‐2095

How do I submit Child Support payments?

• Arkansas Child Support Clearinghouse
  P.O. Box 8124
  Little Rock, AR 72203
• Phone: 1-866-428-8382
• Email: [email protected]
• Child Support Payment Information

Arkansas Benefits

Arkansas Voting Rights:

Employer Right to Schedule Voting Hours         Yes

Pay Deduction for Voting Time Leave                 Not Provided

Employers in Arkansas are required to give employees enough time off to vote. On election days, all companies in Arkansas must schedule employees’ work hours so that they can vote. The quantity of leave time that must be granted is not specified in the law.

Arkansas State Tax Resources