Arkansas New Employer Registration: Step-by-Step Guide

Last reviewed: July 2026

When you hire your first employee in Arkansas, you trigger a series of registration requirements at the federal and state level. Skipping a step now usually means fixing it later under a deadline, so it pays to work through the list in order. This guide covers each registration, in the sequence you'll actually need it.

Registration Overview

Here's a checklist of what every new Arkansas employer needs:

• ☑ Federal Employer Identification Number (EIN)
• ☑ Arkansas state tax registration (Arkansas Department of Finance and Administration)
• ☑ Arkansas SUI account (Arkansas Division of Workforce Services)
• ☑ Workers' compensation insurance
• ☑ New hire reporting setup
• ☑ Payroll system or software

Step 1: Get Your Federal EIN

Your Employer Identification Number (EIN) is your federal tax ID. You need it for federal tax filings, state registrations, opening a business bank account, and running payroll, so it's the first thing to get.

Apply online at IRS.gov/EIN. It's free and you receive your EIN immediately. Once you have it, use our W-4 helper to get federal withholding set up for your first hire.

Step 2: Register with Arkansas Department of Finance and Administration

Visit the Arkansas Department of Finance and Administration website to register for a state employer tax account. This allows you to withhold Arkansas state income tax from employee paychecks and remit it to the state.

From the Payroll Desk

Don't wait until your first payroll to register. State registrations can take days or weeks to process. Start the registration process as soon as you know you'll be hiring.

Step 3: Register for SUI

Register for a State Unemployment Insurance account through the Arkansas Division of Workforce Services. Registration assigns you an employer account number, an initial SUI rate, and a quarterly filing schedule. New employers were assigned a standard rate of 2.0% for 2025 (1.9% plus a 0.1% administrative assessment); the agency issues each employer's current rate at registration, so confirm yours directly with DWS.

SUI is an employer-paid tax on the first $7,000 of each employee's wages per year. See our Arkansas SUI Rates 2026 guide for the full rate table.

Step 4: Workers’ Compensation Insurance

Most Arkansas employers with three or more employees must carry workers' compensation insurance, per the Arkansas Department of Labor and Licensing. The threshold is lower for some industries: construction employers need coverage at two or more employees, and subcontractors need it at just one.

You can obtain workers' comp through private insurance carriers. Compare quotes from a few carriers and confirm your industry classification code, since that code drives most of the premium.

Step 5: New Hire Reporting

Federal and Arkansas law require you to report every new hire, and every rehire, within 20 days of their start date. Submit reports to the Arkansas New Hire Reporting Center at ar-newhire.com. The state uses this data to enforce child support orders and catch unemployment fraud.

See our New Hire Reporting guide for what information each report needs.

Step 6: Set Up Payroll

With all registrations complete, you're ready to set up your payroll system. Decide on a pay frequency that meets Arkansas's semimonthly minimum, then run a few sample paychecks through our paycheck calculator before your first live payroll, so you can catch withholding errors while they're still easy to fix.

Handling deposits and quarterly filings by hand is manageable for one employee, but the workload grows fast once you add a second or third. Most owners at that point move to dedicated payroll software rather than tracking due dates in a spreadsheet.

Frequently Asked Questions

How do I register as a new employer in Arkansas?

Get a federal EIN, then register with the Arkansas Department of Finance and Administration for a withholding account and with the Arkansas Division of Workforce Services for an SUI account. Do this before your first payroll.

When must I register as an employer in Arkansas?

Register as soon as you know you will hire your first employee. Both the withholding account and the SUI account should be active before you issue your first paycheck.

Do I need workers' compensation insurance in Arkansas?

Most Arkansas employers with three or more employees must carry workers' compensation insurance. Construction employers must carry it with two or more employees, and subcontractors need it with one or more.

How soon do I need to report a new hire in Arkansas?

Arkansas employers must report new and rehired employees to the Arkansas New Hire Reporting Center within 20 days of the hire date.