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Taxes
Arkansas Payroll Taxes 2026: Complete Overview for Employers
Arkansas graduated 2%–3.9% income tax, SUI on $7,000, and all employer obligations.
Practical, accurate resources for Arkansas small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
Arkansas graduated 2%–3.9% income tax, SUI on $7,000, and all employer obligations.
How to register with Arkansas Department of Finance and Administration and Arkansas Division of Workforce Services as a new Arkansas employer.
New employer rate 3.1%, experienced range 0.30%–14.00%, wage base $7,000.
Arkansas minimum wage is $11.00/hr. Arkansas’s minimum wage is $11.00/hr. Tipped employees may be paid $2.63/hr with a tip credit.
Semi-monthly pay required. Final pay: Discharged employees’ final wages are due within 7 days of demand..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, Arkansas-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and Arkansas new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and Arkansas recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for Arkansas small businesses.
Federal OT after 40 hrs/week, Arkansas overtime rules, exemptions, salary thresholds.