Arkansas Payroll Services

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Arkansas Payroll Services

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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
  • Arkansas Payroll for Employers
  • Arkansas Income Tax Withholding
  • Arkansas Benefits
  • Arkansas Links

Arkansas Compensation​​

Employees covered by Arkansas's minimum wage law must be paid $8.50 an hour. Employees covered under the Fair Labor Standards Act must receive the federal minimum wage of $8.50 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 For Employers

Employers covered by Arkansas's wage payment law must pay wages at least semi-monthly. 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):                        10,000

New Employer Rate (% Taxable Wages)    2.90

Employee Tax Rate (% Taxable Wages)     None

Period Effective                                             Calendar Year 2018


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 Provided


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 Links


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.

This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.