What are the Arkansas payroll tax registration requirements?

If you plan to run payroll in Arkansas or hire employees who live or work in the state, you must register as an employer with the state. This registration allows you to correctly withhold, file, and pay state payroll taxes. Below is a detailed overview of Arkansas payroll tax requirements to guide you through the process.

Arkansas (AR) Registration for Income and Unemployment Taxes

• Arkansas Department of Finance and Administration: Register and get your DFA Account ID and your filing schedule to file and pay your SIT taxes.
• Arkansas Division of Workforce Services: Register and get your Unemployment Tax ID (DWS ID) to file and pay your SUI taxes.
   

Register for the Department of Finance and Administration (DFA) 

To register with the Department of Finance and Administration (DFA), you must follow the steps below.

• Register via Online: 
  • Visit the Arkansas Department of Finance and Administration, Arkansas Taxpayer Access Point(ATAP)
  • In the ‘Business’ section, click on ‘Register a Business.’
  • Ensure you have the FEIN of the business or the SSN (for sole proprietors), NAICS codes to describe the nature of your business, name, address, phone number, Bank account details, and business location. 
  • Complete the details in each section and click ‘Next’ 
  • Once registered,  you will receive your DFA Account ID and your filing schedule by mail in 1-2 weeks. 

 

• Register by mail
  • To register as a new business and obtain a DFA Account ID by mail, you can use Form AR-1R (Combined Business Tax Registration).

Mail to:

Arkansas Combined Registration
P.O. Box 8123
Little Rock, AR 72203-8123. 

 

• Number Issued

After completing the registration, you will receive an Arkansas DFA Account ID. This number is used to file state withholding forms like Form AR941M, Form AR3MAR. 

To register with the Division of Workforce Services (DWS), you must follow the steps below.

Register via Online

• Visit the Arkansas Division of Workforce Services Employer Registration
• Select “My company has never registered with the AR Division of Workforce Services. I am applying for an employer account number” and press submit. 
• Check the box in the first section, then enter your FEIN. Then select Submit.
• Complete the registration process for a new employer account.
• Once registered, you will receive your UI Tax Account Number. 

 

Register via mail

• To register as a new business by mail, you must file Form DWS-ARK-201.
• Mail to DWS: 

P.O. Box 2981, 

Little Rock, AR 72203.

 

Number Issued: After successful registration, you will receive your Unemployment Insurance (UI) Tax Account Number. Use this number to file Form DWS-ARK-20 every quarter.

 

State Withholding Certificate 

Form AR4EC:

For Arkansas state income tax withholding, employees use Form AR4EC (Employee’s Withholding Exemption Certificate). Employees must complete this Form AR4EC to claim allowances and exemptions for Arkansas state withholding.

Employers use this form to calculate the correct amount of Arkansas state income tax to withhold from each employee’s paycheck. 

Exemptions:

• Employees don’t have an Arkansas income tax liability in the previous year
• Employees expect to have no Arkansas income tax liability in the current year.

 

Form AR4EC(TX) 

Form AR4EC(TX) is designed specifically for employees who reside within the city limits of Texarkana, whether on the Arkansas or Texas side. It allows those employees to claim an exemption from Arkansas state income tax withholding under certain local residency conditions.

Arkansas Payroll Tax Rates for 2025

Minimum Wage Base for Arkansas

Minimum wage Base is the lowest pay that an employer is legally allowed to give an employee, as set by law.

 

Arkansas State Unemployment Insurance (SUI)

SUI taxes are state-level payroll taxes that employers pay to fund unemployment benefits for eligible workers who lose their jobs through no fault of their own. Here are the SUI tax rates for Arkansas:

 

Arkansas Payroll Tax Payments

To pay your Withholding and unemployment taxes, you must follow the given methods:

• Withholding tax payments

• Pay via Online:  

- Sign in to Arkansas Taxpayer Access Point(ATAP).

- Go to Customers → My Accounts and open the appropriate account.

- Select ‘Make a Payment’

• Pay via Mail:  To mail your Arkansas income tax payments, complete the payment voucher Form AR1000V (INDIVIDUAL INCOME TAX RETURN PAYMENT VOUCHER).

                   Mail to:

Arkansas State Income Tax
P.O. Box 2144
Little Rock, AR 72203-21444

 

• Unemployment tax payments

- Pay via Online: 

- Sign in to the Arkansas Tax21 Website and complete the steps to make UI tax payments online.

 

Arkansas Payroll Tax Filings

Here are the tax forms to be filed with the Department of Finance and Administration (DFA) and the Division of Workforce (DWS).

Arkansas Department of Finance and Administration (DFA) 

 

• Form AR941M/AR941Q (Withholding Report): This form is used to report the monthly and quarterly withholding details, depending on their deposit schedule.
• How to file?
  • File by Online: Visit Arkansas Taxpayer Access Point (ATAP). Log in with your business account and select the return to be filed (Form AR941M/AR941Q) and click submit.
  • File by mail: Complete Form AR941M/AR941Q, include the payment and mail to the respective address.

                    Mail to:

Withholding Tax Section
P.O. Box 8055
Little Rock, AR 72203-8055

 

Deadline

• Form 941M(Monthly): Due by the 15th of the following month.
• Form 941 Q(Quarterly): Due by the 15th of the following quarter end.

 

Amendments

• Form AR941M/AR941Q (Withholding Report):

To  correct the errors on Form AR941M/Form 941Q, you must follow the instructions given below:

• Download the same copy of Form AR941M/FormAR941Q 
• Check the box indicating it is an Amended Return.
• Enter the correct withholding information and explain it
• File amended form via ATAP or by mail to the same mailing address.

 

• Form AR-3MAR, Employer’s Annual Reconciliation of Income Tax Withheld: This form is used by Arkansas employers to reconcile the total amount of state income tax withheld from employee wages throughout the year with the payments already made to the Department of Finance and Administration (DFA).

How to file?

 

• File by Online:  Visit the Arkansas Taxpayer Access Point (ATAP) website. 
• File by mail: To file Form AR-3MAR, call 501-682-7290 to request a blank Arkansas Withholding Tax Return or payment vouchers. Arkansas withholding tax section will mail the forms to your business in 2-3 weeks to the DFA.
• Mailing Address:

Individual Income Tax Section Withholding Branch,
P. O. Box 8055
Little Rock, AR 72203-8055.

Deadline: Annual reconciliation tax returns are due by February 28 for the preceding calendar year.

Amendments

If any errors are made on the Form AR3-MAR, you can amend the errors by submitting the amended Form AR3-MAR. Here are the steps to amend 

• Sign in to ATAP to file electronically or contact DFA to obtain a paper form to file by mail.
• Correct the errors and submit the form online or mail your return to the address listed on the form.

• Form AR W-2, Wage and Tax Statement: Arkansas employers are required to file employee W-2 forms each year to report wages paid and state income tax withheld.

How to file?

• File by Online: To file AR W-2, go to the ATAP website. If you are not a member, you can submit your filed using the DFA’s W-2 file submission services.
• File by mail: Send paper copies of W-2s along with Forms ARW-3 and 1096 to the Withholding Branch at the address listed on the form. Instead of paper copies, you can also submit W-2s on a CD-ROM or DVD.

Deadline: Form AR W-2 is due by January 31 of the preceding calendar year

Amendments

• Forms AR W-2/W-3, Wage & tax statement, and transmittal of tax statements
  
  Any errors found on the Form AR W-2/W-3 can be amended using Form W-2C(s) and amended Form ARW-3. Follow the steps below to amend your return.
  • Obtain a copy of Form W-2C(s), filed with the IRS.
  • Download Form ARW-3 and write the amendments clearly at the top of the form.
  • Mail your completed return to the address listed on the form.

 

Arkansas Division of Workforce (DWS)

• Form DWS-ARK-209B (Quarterly Contribution and Wage Report): This form is used to report the unemployment tax reports and payments to the Arkansas DWS.

How to file?

• File by Online: Visit the Arkansas Online Unemployment Insurance Employer Services website to file and pay tax dues using Electronic Funds Transfer (EFT).
• File by mail: Complete Form DWS-ARK-209B from the UI employers forms section and include the check for payments due, along with it, and mail to the respective tax agencies.

Deadline: UI tax reports and payments are due by the last day of the month following the end of the calendar quarter

• Q1 (Jan–Mar): April 30
• Q2 (Apr–Jun): July 31
• Q3 (Jul–Sep): October 31
• Q4 (Oct–Dec): January 31 

New Hire Report 

All employers must report new hires and rehires within 20 days of the employee’s start date.

Required Information

Employer Information:

• Name
• Address
• Federal EIN
   

Employee Information:

• Full name
• Address
• Social Security Number (SSN)
• Date of hire
• Date of birth (optional but recommended)
   

How to File

1. Online (Preferred): Submit via the Arkansas New Hire Reporting Center.
2. Mail or Fax: You can mail or fax your new hire report to the New Hire Reporting Center.

Mail: 

Arkansas New Hire Reporting Center,
P.O. Box 2540,
Little Rock, AR 72203

Fax: (800) 259-3562