Arkansas Payroll Tax and Registration Guide

Employers in The Natural State, here’s what you need to know about payroll taxes and business registration in Arkansas.

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Employers in The Natural State, here’s what you need to know about payroll taxes and business registration in Arkansas. Business registration and payroll taxes can be complicated. In order to get the best advice you can, enlist the help of a lawyer or a Certified Public Accountant in the State of Arkansas to guide you through the process.

Whether you’re a brand-new small business or branching out into Arkansas for the first time, here’s how to stay compliant with payroll tax and business registration laws in the state.

Arkansas tax account registration information

The first thing that any new business in the State of Arkansas will have to do is register the business with the Arkansas Secretary of State. This is the first step to being able to sign up for the necessary accounts to pay necessary unemployment taxes and the like in Arkansas.

  1. Use the state’s “Doing Business in Arkansas” booklet as your guide.
  2. Search for an available business entity name and follow the name availability guidelines.
  3. File your new business entity with the state either online or with paper forms.

Once your business is registered, you’ll go through the Arkansas Department of Finance and Administration and use its Arkansas taxpayer Access Point (ATAP) to pay business taxes in the state.

Required payroll documentation for Arkansas

The Arkansas Department of Finance and Administration governs the state’s tax withholdings.

Withholding information

Arkansas uses a progressive income tax. State income tax in Arkansas ranges from 2% to 5.5%. Making more than $79,300 places an employee in the highest tax bracket.

Employers also have to withhold state unemployment insurance. These rates range from 0.3% to 14.2% on the first $10,000 in paid wages per employee each calendar year. All new employers pay a flat unemployment insurance rate of 3.1% plus a 0.3% stabilization tax.

Use the appropriate forms and follow the deadlines for payments established by the department’s withholding tax branch.

Power of Attorney rules for Arkansas Payroll Tax and Registration

Arkansas has power of attorney laws that allow individuals to represent businesses before the Department of Finance Administration. Fill out this form to put Arkansas’s power of attorney laws to work for your business.

Local income taxes imposed for Arkansas

Arkansas does impose state income tax, but there are no local income taxes. Employers pay the same for each employee no matter where they live in the state.

Arkansas resources for Payroll Tax and Registration Laws

The Arkansas Department of Workforce Services and the Arkansas Department of Finance and Administration are additional entities that can help with state payroll taxes. The Arkansas Secretary of State can help with business registration laws.

This website provides general information related to TriNet Zenefits services and related laws and best practices. This content and TriNet Zenefits employees do not provide legal advice. While we strive to provide useful general information applicable to the majority of our readers, we do not — and cannot — provide legal advice specific to your company and your situation. Already a TriNet Zenefits customer? Enjoy on-demand HR Advisory Services for all your HR and compliance questions. If not, learn more here.

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