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Summary of differences between federal and state regulations
Income tax withholding
Arkansas withholding requirements apply to every employer with one (1) or more employees. All employers or other withholding agents are required to register with the Revenue Division by completing and returning an Employers Withholding Registration (Form AR4ER). Employer is defined as a person doing business in or deriving income from sources within the State of Arkansas, who has control of the payment of wages to an individual for services performed. An employer is also a person who is the officer agent of the person having control of the payment of wages. The word “person” means individuals, fiduciaries, corporations, partnerships, limited liability companies, associations, the state and its political subdivisions, and the federal government and its agencies and instrumentalities.
An employer is required to withhold tax from wages of employees who work within the State of Arkansas. An employer is not required to withhold Arkansas tax from the wages of any employee who does not work within the state of Arkansas, unless the employee is a resident of Arkansas and the state they are employed in does not have a state income tax.
Unemployment taxes
All states finance UC primarily through contributions from subject employers on the wages of their covered workers. In addition, three states (Alaska, New Jersey, and Pennsylvania) collect contributions from employees. These taxes are deposited by the state to its account in the UTF in the Federal Treasury, and are withdrawn as needed to pay benefits.
Many states have adopted a higher tax base than what is provided in FUTA. Hawaii's wage base is usually higher and changes periodically. In all states, an employer pays a tax on wages paid to each worker within a calendar year up to the amount specified in state law. In addition, most of the states provide an automatic adjustment of the wage base if federal law is amended to apply to a higher wage base than that specified under state law. As a result of the many variables in states taxable wage bases and rates, benefit formulas, and economic conditions, actual tax rates vary greatly among the states and among individual employers within a state.
Wages subject to unemployment tax in this state equal $10,000.
Minimum and maximum rates in this state are 0.9 and 10.8 %. Rates apply to experience rated employers only and do not include applicable surtaxes or penalties.
State
Contacts
Income tax withholding
Department of Finance and Administration
Unemployment taxes
Employment Security Department
Regulations
Unemployment taxes
State of Arkansas Employment Security Regulations
www.labor.arkansas.gov/laws-and-regulations