Arkansas Paystub Requirements
Before distributing pay stubs to your employees and contractors in Arkansas, it's crucial to familiarize yourself with the state's specific laws and regulations governing payroll operations.
This comprehensive guide outlines the essential information you need to know as an employer in Arkansas, ensuring compliance with relevant statutes and regulations while managing payroll and providing accurate pay stubs.
Pay stub regulations in Arkansas
1. Are pay stubs required by law in Arkansas?
It's not mandatory for employers in Arkansas to provide employees with pay stubs. However, federal law requires all employers covered by the Fair Labor Standards Act (FLSA) to maintain a record of employee payments for at least 3 years.
2. How often do you need a pay stub in Arkansas?
The state of Arkansas requires that employers pay their employees at least semi-monthly, or every two weeks. Although there's no law for employers to provide pay stubs to their employees and contractors, it is recommended that you issue pay stubs every time you pay an employee.
3. What information can be included on a pay stub in Arkansas?
Since there’s no law for pay stubs, you can include the information listed below:
- Employee information such as name, last 4 digits of social security number, and address
- Employer information such as name, employer identification number (EIN), and address
- Pay period
- Gross earnings before deductions
- Taxes withheld
- Employee contributions
- Deductions
- Net pay
4. Does Arkansas have a state income tax?
Yes, state income taxes are applicable to employees in the state of Arkansas.
5. Are there any other taxes applicable to Arkansas?
No. There are no local taxes in addition to federal and state income taxes applicable to employees in the state of Arkansas.
Information needed to generate pay stubs
To provide employees with accurate pay stubs, the information below is required.
- Whether the employee is Texarkana resident (Arkansas individual income taxes are not applicable to Texarkansas residents)
- The employee’s exemption status from state withholding
- Employee’s total allowances and additional state withholding amount
Have all the information handy?
With SecurePayStubs, you can calculate accurate federal and Arkansas state taxes for your employees and generate pay stubs securely.
Arkansas wage and hour laws
Employers are required to provide minimum wage, overtime pay, meal and rest breaks, and paid time-off benefits to all non-exempt employees.
The law covers the following:
Minimum wage
The state of Arkansas has set a minimum wage for employees and employers are required to pay at least the minimum wage set.
For 2024, the minimum wage to be paid for employees in Arkansas is $11 per hour.
Overtime pay
The state of Arkansas requires employers to pay non-exempt employees overtime at a rate of 1.5 times their regular rate when they work more than 40 hours in a workweek.
Meal breaks
Arkansas doesn’t have any law regulating meal breaks. However, according to the US Department of Labor, any breaks under 20 minutes should be paid.
Rest breaks
Arkansas doesn’t have any law regulating meal breaks. However, according to the US Department of Labor, any breaks under 20 minutes should be paid.
Employers should also provide a reasonable amount of time to breastfeeding employees for lactation breaks.
Paid time off and leave
Employers in Arkansas need to provide required and non-required leaves for their employees.
| Required leaves (unpaid) | Non-required leaves (Paid and unpaid) |
|---|---|
| Family and medical leave of up to 12 weeks of leave per year. | Sick leave |
| Jury duty leave | Vacation or holiday leave |
| Voting time leave | Bereavement leave |
| Military leave | |
| Organ or bone marrow donor leave of up to 90 days |
Arkansas State payroll taxes 2024
In Arkansas, payroll taxes are divided into different categories:
- Arkansas Personal Income Tax(PIT)
- Arkansas State Unemployment Insurance (UI) Tax
Arkansas Personal Income Tax(PIT)
Arkansas adjusts its state personal income tax rates based on an individual's filing status and income level. Filing statuses encompass Single, Married Filing Separately, Married Filing Jointly, and Head of Household.
For the tax year 2024, here are the rates and brackets for single filers and married filers:
| If the Arkansas taxable income | The tax is |
|---|---|
| Over $0 but not over $4,400 | 2.00% of the excess over $0 |
| Over $4,400 but not over $8,800 | 4.00% of the excess over $4,400 |
| Over $8,800 | 4.40% of the excess over $8,800 |
Standard Deduction for Single Filers: $2,340
Standard Deduction for Couples: $4,680
Arkansas State Unemployment Insurance (UI) Tax
Arkansas has enacted the State Unemployment Tax Act (SUTA) to support individuals facing unemployment by providing unemployment benefits. This legislation enables the state to collect the required funds to manage unemployment insurance benefits for eligible individuals during job loss.
For experienced employers in 2024, State Unemployment Tax Act (SUTA) rates range from 0.1% to 10.0%.
New employers have a rate of 1.9% for the year 2024.
The taxable wage base for the year 2024 is $7,000.
| Contribution Base Rate | Reserve Ratio |
|---|---|
| 0.1% | 9.95% or more |
| 0.3% | 9.35% but less than 9.95% |
| 0.5% | 8.85% but less than 9.35% |
| 0.8% | 8.65% but less than 8.85% |
| 1.2% | 8.35% but less than 8.65% |
| 1.6% | 7.95% but less than 8.35% |
| 2.0% | 7.35% but less than 7.95% |
| 2.4% | 6.75% but less than 7.35% |
| 2.8% | 5.45% but less than 6.75% |
| 3.2% | 2.45% but less than 5.45% |
| 4.0% | 1.35% but less than 2.45% |
| 5.0% | Less than 1.35% with a positive reserve balance |
| 6.0% | Less than 0.00% |
| 8.0% | Less than 0.00% for four consecutive years |
| 10.0% | Less than 0.00% for eight consecutive years |
| 12.0% NA as of 1/1/2024 | Less than 0.00% for six consecutive years |
| 14.0% NA as of 1/1/2024 | Less than 0.00% for eight consecutive years |
| 1.9% as of 1/1/2024, previously 2.9% | New Employer Rate |
Arkansas payroll tax filing
- Report of New hire Employees
- Report of Independent Contractors
- Arkansas personal income tax filing(Form AR1000NR, Form AR1000F)
- Arkansas Employer's Quarterly Contribution and Wage Report ( DWS-ARK-209B)
Report of New hire Employees
Arkansas mandates that employers report newly hired or rehired employees to the state's New Hire Reporting Program within 20 days of their hire date.
Report of Independent Contractors
In Arkansas, employers are not required to report newly hired or rehired independent contractors to the state's New Hire Reporting Program.
How to report employees new hire in Arkansas?
Employers in Arkansas have access to multiple options for submitting new hire information, offering flexibility in the reporting process. These options may include online portals, electronic filing systems, mail-in forms, or even third-party service providers.
| Online | Fax | |
|---|---|---|
| Employees New Hire Report | Address Information: P.O. Box 8007 Little Rock, AR 72203 Direct Phone: 844-908-2178 Public Phone: 844-908-2178 Extension: 2 Email: ADWS.NewHire@arkansas.gov | Fax 1: 501-376-2682 Fax 2: 800-259-3562 |
Arkansas personal income tax filing(Form AR1000NR, Form AR1000F)
The deadline to submit 2023 tax returns or request an extension to file is April 15, 2024, for most taxpayers. All taxes owed must be paid by April 15, 2024, as there is no extension to pay. Failure to pay taxes by this deadline will result in penalties and interest until the amount is fully paid.
For Arkansas Individual Income Tax returns, the due date is also April 15. If April 15 falls on a weekend or holiday, the return is due on the next business day. Filing a federal or State of Arkansas Extension allows taxpayers to file their returns past the original due date without incurring late filing penalties, provided the return is filed before the extension deadline. However, interest and any applicable failure-to-pay penalty will accrue on any tax owed from the original due date until the date the income tax return is filed.
For individuals filing their Arkansas income taxes, there are two main forms: the Form AR1000NR for Part-Year or Non-Resident Individual Income Tax Return and the Form AR1000F for Full-Year Resident Individual Income Tax Return.
Arkansas Employer's Quarterly Contribution and Wage Report ( DWS-ARK-209B)
Employers are legally obligated to submit wage reports on a quarterly basis, regardless of whether wages were paid during the quarter. Quarterly reports can be filed in two formats:
- Online through the Tax21 system.
- Paper reports using designated forms, such as Form ARK-DWS-209B or DWS-ARK-209BR for Reimbursable Employers, or DWS-ARK-209BS for Seasonal Industries.
If an employer has 250 or more employees, they must file electronically via the Tax21 system. Failure to fully comply with electronic reporting requirements may lead to additional penalties being assessed.
Quarterly wage reports are due quarterly on the following schedule:
| Reporting Period | Due Date |
|---|---|
| Quarter 1 | April 30 |
| Quarter 2 | July 31 |
| Quarter 3 | October 31 |
| Quarter 4 | January 31 |
Employers face penalties for late filing of quarterly reports as follows:
- $10.00 or 5% of tax due (whichever is greater) if filed within 20 days after the due date.
- $20.00 or 10% of tax due (whichever is greater) if filed more than 20 days after the due date.
- $30.00 or 15% of tax due (whichever is greater) if wage estimation or subpoenaed records are necessary, or if required information like employer wage data or employee Social Security numbers is incomplete.
Reimbursable employers incur:
- $10.00 penalty if the report is filed within 20 days after the due date.
- $20.00 penalty if filed more than 20 days after the due date.
Processing payroll manually is complex
As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.
Utilize SecurePayStubs to effortlessly generate pay stubs for your employees and independent contractors in under 2 minutes. Our paystub generator ensures accuracy in calculating both federal and Arkansas state taxes, streamlining your payroll process with efficiency and ease. Enter the basic employee and employer information, select a pay stub template for free, and let SecurePayStubs calculate the applicable payroll taxes accurately.
Spend less time generating pay stubs and more on your business growth.
This article has been updated from its original publication date of April 8, 2024.