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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 Compensation

Employees covered by Arkansas's minimum wage law must be paid $6.25 an hour. Employees covered under the Fair Labor Standards Act must receive the federal minimum wage of $7.25 per 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;
volunteers in educational, charitable, religious, or nonprofit organizations;
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)	12,000
New Employer Rate (% Taxable Wages)	3.8
Employee Tax Rate (% Taxable Wages)	None
Period Effective	Calendar Year 2011

Arkansas Payroll Links

Arkansas Department of Finance and Administration >> 7th and Wolfe treets, 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.

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 Benefits

Arkansas Voting Rights:
Employer Right to Schedule Voting Hours	Yes
Pay Deduction for Voting Time Leave	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 Payroll Calculator

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Follow the link to learn more about calculating payroll tax where there are definitions and further explanation of how to calculate Arkansas payroll taxes. If you are tired of doing it yourself we encourage you to call 877.954.7873 to speak with a payroll expert or just get a free personalized payroll service quote.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

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.