Arkansas payroll tax and registration guide

Updated October 2, 2023

What we'll cover:

• What information OnPay needs from you
• What state and local taxes and filings OnPay handles for Arkansas employers
• Where you can find the tax account numbers needed
• Paying employees in other states?

Why is this important?

The following information requests and registration instructions are required before you can use a payroll provider to run payroll. This is in compliance with state payroll tax regulations. Without this information, OnPay is unable to file or deposit any tax payments for your company, and will not be responsible for any resulting penalties or interest. Note: If this isn't the only state where you have employees, there will be a separate guide like this one for each state where you hire and pay workers. 

Let Middesk handle your state tax registrations (and more)

If you'd like help, our partner Middesk makes hiring employees and staying compliant with every state agency simple and easy.

• Register with every state agency to get the tax IDs you need within minutes
• Stay compliant as you grow by managing agency mail and notices in your dashboard
• Manage your government accounts in one place on Middesk's intuitive platform
• Foreign Qualify with the Secretary of State to create payroll tax accounts 

Learn more about Middesk→

What information OnPay needs from you

What state and local taxes and filings OnPay handles for Arkansas employers

Where you can find the tax account numbers needed

If you are an existing employer who has previously run payroll in Arkansas, you likely already have the IDs and online accounts needed for OnPay to process your tax filings.

If you are a new employer in Arkansas, you will need to register your business with the Arkansas Department of Finance and Administration and the Arkansas Department of Workforce Services. This must be completed for OnPay to be able to file and pay your Arkansas taxes.

Withholding Tax Account Number, Zip Code, Last Tax Payment, and Deposit Frequency

Existing Arkansas Employer: 

• You can find your Withholding Wage Tax Account Number and deposit frequency on payment vouchers or registration notices from the state agency. 
• Deposit frequency will be monthly, unless notified by the Commissioner of Revenue of any change in frequency. 
• The Withholding Tax Section will reclassify accounts to an annual filing status (once an account has established a filing history) if the tax deposits are less than $1,000.00 in a reported period. 
• Zip Code: This is the zip code that is registered with the Arkansas Department of Finance and Administration. If the zip code does not match the zip code as registered with Arkansas, our access to your account will be denied. 
• Last Withholding Wage Tax Payment: This is the last payment completed on Arkansas TAP for Withholding Wage Tax.

New Arkansas Employer: Register with the Arkansas Department of Finance and Administration (501)-682-7290

• Click here to access the "Register New Business" link.
• Click the "Register New Business" link to begin the process.
• After you complete the registration, You will receive a letter in the mail that will display the following information:
• Arkansas Withholding Wage Tax Account Number
• Deposit Frequency - All new registrations are classified as “monthly filers” and will report accordingly until notified by the Commissioner of Revenue of any change in classification.
• You will need to register with this department if you have employees that both live and work in Arkansas, or for any employees that calculate Arkansas withholding taxes regardless of where they live/work. if your business is located outside of Arkansas, but your employees work or live in Arkansas you will likely need to register with this agency.

Unemployment Account Number and Tax Rate

Existing Arkansas Employer: 

• You can find your Unemployment Account Number on the following forms:
• Your Unemployment Tax Rate can also be found in the Tax Rate Notice. New employers generally have a rate of 0.3% to 14.2% (this is including a 0.2% stabilization tax) for SUTA with a wage base of $7,000

New Arkansas Employer: Register with the Arkansas Department of Workforce Services (501)-682-4500

• Click here and select “My company has never registered with the AR Division of Workforce Services. I am applying for an employer account number,” and press submit.
• Check the box in the first section, then enter your FEIN. Then select Submit.
• You will receive your unemployment account number and tax rate after registering.
• You will need to register with this department if you have employees that work in Arkansas. If your business is located out of the state, but some of your employee's primary work location is in Arkansas, you will likely need to register with this agency.
• NOTE: You are not required to register with the Arkansas Department of Workforce Services until you have paid $1,000 in wages during a calendar quarter.

Paying employees in other states?

If you operate in multiple states or just have employees working from home across a state line, it's important to file the correct state forms for those workers. See what forms we file in the states where you pay employees.

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