Arkansas Payroll

Did you know that Arkansas has special border city state tax exemptions for Texarkana, Arkansas? That Certain Arkansas employees in executive and administrative positions are exempt from the minimum wage law?

Arkansas Income Tax Withholding

Arkansas law requires employers to withhold state income tax from employee's 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 Benefits

Arkansas Voting Rights:

Employer Right To Schedule Voting Hours	Pay Deduction For Voting Time Leave
Yes	Not Specified

Arkansas requires employers to allow employees sufficient leave time to vote. All employers in Arkansas must schedule employees' work hours on election days so employees have time to vote. The law does not specify the exact amount of leave time that must be granted.

Arkansas Compensation

Employees covered by Arkansas's minimum wage law must be paid $6.25 an hour.

All employees of employers with four or more workers are covered except those specifically exempt by statute; among those exempt are:

• Employees in executive, administrative, or professional capacities;
• Outside salespersons on commission;
• Students working for schools where they are enrolled;
• Independent contractors; and
• Workers for agricultural employers not using more than 500 worker-days of agricultural labor in any quarter of the preceding year.

Arkansas Payroll

Employers covered by Arkansas's wage payment law must pay wages at least semimonthly. Corporations with annual gross incomes of $500,000 or more can pay management or executive employees who are exempt under the Fair Labor Standards Act once each month, provided these employees are paid more than $25,000 annually.

Arkansas Unemployment:

Taxable Wage Base ($000s)	New Employer Rate (% Taxable Wages)	Employee Tax Rate (% Taxable Wages)	Period Effective
10,000	3.7	None	Calendar Year 2007

Helpful Links for Arkansas Payroll

Arkansas Department of Finance and Administration
7th and Wolfe Streets, Room 1380
PO Box 8055
Little Rock, Arkansas 72203-8055
(501) 682-7290

Arkansas Department of Labor
10421 W. Markham
Little Rock, Arkansas 72205
(501) 682-4500

Arkansas Laws
The Arkansas General Assembly offers access to the Arkansas Code on the Internet as a service to the public.

Arkansas Department of Workforce Services
The Arkansas Department of Workforce Services website offers information on employment services and labor market information.

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