| The Arkansas State Agency that oversees the | | | | This information must be reported within 20 days |
| collection and reporting of State income taxes | | | | of the hiring or rehiring. |
| deducted from payroll checks is: | | | | The information can be sent as a W4 or |
| Department of Finance and Administration | | | | equivalent by mail, fax or electronically. |
| Revenue Division | | | | There is a no penalty for a late report in |
| P.O. Box 9941 | | | | Arkansas. |
| Little Rock, AR 72203-9941 | | | | The Arkansas new hire reporting agency can be |
| 501-682-2212 | | | | reached at 800-259-2095 or on the web at . |
| Arkansas requires that you use Arkansas form | | | | Arkansas does not allow compulsory direct |
| "AR4EC, Employee's Withholding Exemption | | | | deposit. Any employee can opt out in writing and |
| Certificate" instead of a Federal W-4 Form for | | | | request a check |
| Arkansas State Income Tax Withholding. | | | | Arkansas has no State Wage and Hour Law |
| Not all states allow salary reductions made under | | | | provisions concerning pay stub information. |
| Section 125 cafeteria plans or 401(k) to be | | | | In Arkansas employees must be paid at least |
| treated in the same manner as the IRS code | | | | semi-monthly; monthly for FLSA-exempt |
| allows. In Arkansas cafeteria plans: are not taxable | | | | employees at larger companies earning at least |
| for income tax calculation; are not taxable for | | | | $25,000.00 annually. |
| unemployment insurance purposes. 401(k) plan | | | | Arkansas payroll law requires that involuntarily |
| deferrals are: not taxable for income taxes; are | | | | terminated employees must be paid their final pay |
| taxable for unemployment purposes. | | | | within 7 working days and that for voluntarily |
| In Arkansas supplemental wages are taxed at a | | | | terminated employees there is no provision. |
| 7% flat rate. | | | | Escheat laws in Arkansas require that unclaimed |
| You may file your Arkansas State W-2s by | | | | wages be paid over to the state after one year. |
| magnetic media if you choose to. | | | | The employer is further required in Arkansas to |
| The Arkansas State Unemployment Insurance | | | | keep a record of the wages abandoned and |
| Agency is: | | | | turned over to the state for a period of ten |
| Employment Security Department | | | | years. |
| P.O. Box 2981 | | | | Arkansas payroll law mandates no more than |
| Little Rock, AR 72203-2981 | | | | 50% of minimum wage may be used as a tip |
| 501-682-3274 | | | | credit. |
| The State of Arkansas taxable wage base for | | | | In the Arkansas payroll law there is no provision |
| unemployment purposes is wages up to | | | | covering required rest or meal periods. |
| $10000.00. | | | | Arkansas law provides that record retention of |
| Arkansas requires Magnetic media reporting of | | | | wage and hour records period is at least three |
| quarterly wage reporting if the employer has at | | | | years. |
| least 250 employees that they are reporting that | | | | The Arkansas agency charged with enforcing |
| quarter. | | | | Child Support Orders and laws is: |
| Unemployment records must be retained in | | | | Office of Child Support Enforcement |
| Arkansas for a minimum period of five years. | | | | 400 E. Capitol |
| This information generally includes: name; social | | | | P.O. Box 8133 |
| security number; dates of hire, rehire and | | | | Little Rock, AR 72203 |
| termination; wages by period; payroll pay periods | | | | 501-682-8398 |
| and pay dates; date and circumstances of | | | | Arkansas has the following provisions for child |
| termination. | | | | support deductions: |
| The Arkansas State Agency charged with | | | | - When to start Withholding? 14 days after order |
| enforcing the state wage and hour laws is: | | | | is mailed |
| Department of Labor | | | | - When to send Payment? Payday. |
| 10421 West Markham | | | | - When to send Termination Notice? Immediaetly |
| Little Rock, AR 72205 | | | | - Maximum Administrative Fee? $2.50 per pay |
| 501-682-4500 | | | | period |
| State minimum wage in the State of Arkansas | | | | - Withholding Limits? Federal Rules under CCPA. |
| for non-FLSA employers is $5.15 per hour. | | | | Please note that this article is not updated for |
| Arkansas State Law covering paying overtime in | | | | changes that can and will happen from time to |
| a non-FLSA covered employer is still one and 1/2 | | | | time. |
| times regular rate after 40-hour week. | | | | Charles J. Read, CPA has been in the payroll, |
| Arkansas State new hire reporting requirements | | | | accounting and tax business for 30 years,the last |
| are that every employer must report every new | | | | fifteen in private practice. Mr. Read is the author |
| hire and rehire. The employer must report the | | | | of "Tax and Accounting Issuesin Forming a New |
| federally required elements of: | | | | Business." |
| - Employee's name | | | | To find professional payroll services at a budget |
| - Employee's address | | | | price go to paperless payroll company. |
| - Employee's social security number | | | | For a full service payroll bureau with CPA's on |
| - Employer's name | | | | staff visit . |
| - Employers address | | | | See an excerpt of Mr. Read's interviews from |
| - Employer's Federal Employer Identification | | | | William Shatner's "Heartbeat of America"television |
| Number (EIN) | | | | show on the web sites linked above. |