2025 YEAR END
Withholding
Withholding requirements
Employers in Arkansas are required to withhold state income tax from the wages of employees who perform services within the state. This withholding must be remitted to the Arkansas Department of Finance and Administration (DFA) on a monthly or annual basis, depending on the employer’s tax liability.
Supplemental rate
3.9%.
Supplemental wages: These include things like bonuses, commissions, and other payments made in addition to an employee’s regular wages. Employers in Arkansas can use this flat rate to calculate withholding on these payments.
State Unemployment Insurance (SUI)
Wage base
$7,000
Contributions
Rates range from 0.2% to 10.1%. New employers use 2.0%.
More information
Quarterly Filing and Payments: SUI taxes are reported and paid on a quarterly basis. The deadlines are:
- 1st Quarter (Jan-Mar): April 30
- 2nd Quarter (Apr-Jun): July 31
- 3rd Quarter (Jul-Sep): October 31
- 4th Quarter (Oct-Dec): January 31
Administrative Assessment: While the stabilization tax has been repealed, an administrative assessment of 0.1% is included in the SUI rate for new employers.
Experience Rating: Your specific SUI tax rate can fluctuate from year to year based on your company’s claims experience. A higher number of unemployment claims from former employees can lead to a higher tax rate, within the established range of 0.2% to 10.1%.
Reporting Requirements: All employers are required to file a quarterly wage report with the Arkansas Division of Workforce Services (DWS), even if no wages were paid in that quarter.
Labor
Minimum wage
$11.00
Termination Pay
Final pay is due by the next regular payday. However, if the employer fails to pay within seven days of that payday, they may be liable for double the wages owed.
For employees who quit: Final pay is also due on the next regular payday.
More information
At-will employment
- Arkansas is an “at-will” employment state, which means employers can terminate an employee for any reason, or no reason at all, as long as it isn’t an illegal reason (such as discrimination based on a protected class like race, gender, or religion).
Vacation and PTO payout
- There is no state law in Arkansas requiring employers to pay out accrued, unused vacation time or PTO upon an employee’s termination.
- The final decision on whether to pay out unused leave is determined by the company’s internal policy or the employee’s contract.
Under both Arkansas law (for employers with 4 or more employees) and the federal Fair Labor Standards Act (FLSA), the current minimum wage is $11.00 per hour, and non-exempt employees must be paid time-and-a-half for all hours worked over 40 in a single workweek.
New Hire Filing
Reporting deadline
Employers must report new hires, rehires, or employees returning to work within 20 days of their start date.
Reporting online
Reporting by mail
For non-electronic reports sent by mail, use the following address:
Arkansas New Hire Reporting Center
P.O. Box 2540
Little Rock, AR 72203
New hire reporting form
Form W-4
Child Support
Online payments
More information
Payment methods: There are several options for making payments, including online via MyCase (eCheck or credit card), through MoneyGram, or by mail.
Case number: Payers must always include their case number with any payment to ensure it is properly credited.
Mail payments: The specific address for mailing payments is different from the main office address. Checks or money orders must be sent to:
Arkansas Child Support Clearinghouse
P.O. Box 8124
Little Rock, AR 72203
Note: Do not send cash through the mail.
- Enforcement: The Office of Child Support Enforcement (OCSE) has several tools to enforce child support orders, including:
- Intercepting state and federal tax refunds.
- Suspending driver’s, hunting, and fishing licenses.
- Freezing or seizing bank accounts.
- Withholding wages.
Other
New employer registration
Local taxes
N/A
Reciprocal states
N/A
Disability insurance
N/A
Helpful links
This agency provides a wealth of information on labor standards, including minimum wage, overtime, child labor, and payment of wages.
Last Updated
09/09/2025
States
The information provided here should not be considered legal or accounting advice nor should it substitute for legal, accounting, and other professional advice. If you require legal or accounting advice, you should always consult your licensed attorney, accountant, or other professional to discuss the facts of your particular situation.
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