Arkansas Payroll Tax and Labor Laws

Get your Arkansas State Tax ID Number 

Click HERE to obtain State Tax ID  

Click HERE to obtain State Unemployment Tax ID  

Arkansas Wage and Hour Laws 

Minimum Wage  

Arkansas minimum wage laws require covered employers to pay employees at least $11.00 per hour.  

For more information on Arkansas’ minimum wage rules, please click HERE.  

Overtime  

Arkansas overtime law requires covered employers to pay non-exempt employees one and one-half times the regular rate of pay for hours worked in excess of 40 in a work week.   

For more information on Arkansas’ overtime rules, please click HERE.  

Pay Frequency  

Arkansas pay frequency laws require employers to pay employees at least semi-monthly.   

For corporations with annual gross incomes of at least $500,000, employers may pay management level and executive employees who are exempt under the FLSA on a monthly basis.  

Arkansas Unemployment

Taxable Wage Base ($000s):                            $7,000  

New Employer Rate (% Taxable Wages):        2.025% (rate includes surcharges) 

Employee Tax Rate (% Taxable Wages):        None 

Arkansas Income Tax Withholding 

Arkansas law requires employers to withhold state income tax from employees' wages and remit the amounts withheld to the Department of Finance and Administration.  

Special border city exemptions apply for residents of Texarkana, Arkansas, and Texarkana, Texas. Texarkana, Arkansas, residents are exempt from Arkansas income tax and withholding; however, they must file an income tax return and provide their employers with Form AR-TX in order to certify their residency and exemption from tax withholding.  

Texarkana, Texas residents are exempt from Arkansas income tax and withholding on wages earned in Texarkana, Arkansas, but must pay Arkansas tax on wages earned in other parts of Arkansas. Other Texas residents are liable for taxes on all wages earned in any part of Arkansas.  

Arkansas State Resources 

Arkansas Department of Finance and Administration  

Arkansas Department of Labor and Licensing  

Arkansas Department of Workforce Services  

Arkansas SUI Rate  

SurePayroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.  

This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.  

Revised 1/1/2024