Arkansas New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Your small business will need to have an Employer Identification Number, (also known as an EIN or FEIN) if you do not already have one.
- If you do not have one, the simplest (and preferred way) is to apply for an EIN with the IRS online. There is no cost to apply for an EIN.
- To read more about applying for EIN’s, read our help article, “Your Step-by-step Guide on How to Apply for EIN”
- Although it is not required, we recommend enrolling in the Electronic Federal Tax Payment System (EFTPS). You can easily register online.
- You will need to have this account to make tax payments online or view any tax filings made on your behalf by Patriot Software if you are a Full Service Payroll customer.
- To find out more about EFTPS, please read our article, “What Is EFTPS?”
State of Arkansas Tax Accounts:
- As an Arkansas new employer, you will need to register with the Department of Finance and Administration for a withholding tax account number for your state income taxes (SIT). This can be done online at the Arkansas Taxpayer Access Point.
- You will also need to register with the Arkansas Department of Workforce Services for a state unemployment insurance (SUI) tax account number. This can also be done online here.
- You will be given a unemployment taxation rate every year, which is determined by the Department of Workforce Services.
- The new employer SUTA rate in Arkansas is 3.1% for 2023. (Rate includes the 0.2% stabilization tax.)
- To learn more about SUTA tax, please read our article “What Is SUTA Tax?”
Setting Up Your New Employee:
- Have your employees fill out the required Form I-9. This is a two-part form. Employees fill out the top half of the I-9, while the employer fills out the bottom.
- To learn more about the Form I-9, please read “Form I-9 In a Nutshell”
- You must retain each employee’s completed Form I-9 as long as the individual works for you.
- For more information, please read “What Should Be in an Employee File?”
- You may want to Enroll in E-verify and submit employee information, although it is not required. For more information, read our help article, “What Is E-Verify?”
- Have your new employee fill out Form W-4, Employee’s Withholding Certificate.
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know”
- The state employee withholding form AR4EC is required for state income taxes (SIT).
- Report new hires online with the Arkansas New Hire Reporting Center within 20 days from the date of hire or rehire.
- For more information, please read, “What Is New Hire Reporting?”
- Arkansas minimum wage is required for all employers with four or more employees. The minimum wage is $11.00 for 2023.
- By law, you will need to display the minimum wage poster for your employees. You can access the required minimum wage poster here.
Once you have all the necessary information, you will be able to set up your payroll for your business.
As an employer, you will be required to keep employee payroll records for at least three years. For more information, please read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions. We are here to help!
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