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Arkansas Withholding: What you need to know

Arkansas law requires withholding of state income taxes from the wages of residents and nonresidents for services performed for Arkansas employers. Nonresidents are subject to the tax only on wages paid for services performed within the state. Special border city exemptions apply for residents of Texarkana, Arkansas, and Texarkana, Texas.
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The amount to be withheld may be determined from withholding tables or a computer formula provided by the Department of Finance and Administration.
Taxes must be withheld on “wages,” which include all cash and noncash payments for services performed by an employee. Vacation allowances, sick-leave pay, back pay, supplemental unemployment benefits, retroactive wage increases, and reported tips of more than $20 per month are subject to withholding. Arkansas follows federal rules on the tax treatment of benefits.
Exclusions. Payments for the following services are exempt from withholding:
• Domestic service in a private home, college club, or college fraternity or sorority
• Agricultural labor for an employer that has fewer than four employees
• Service not in the course of the employer's trade or business where compensation is less than $150 per quarter
• Religious service performed by ministers or members of religious orders
Employees. Employers must obtain an exemption certificate, Form AR-4EC or federal Form W-4, from each employee. Employers that use Form W-4 are responsible for modifying the form to state requirements because Arkansas does not allow exemptions for old age, deafness, or blindness. Employees with no federal tax liability in either the current or preceding year are exempt from Arkansas withholding and should file Form AR-4ED ...

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Arkansas Withholding Resources

Withholding Products

Taxation and Withholding Explained Webinar Recording
BLR Webinar: "Taxation and Withholding Explained: Compliance Tips for Multistate Employers""
Employment Taxes in Multiple States Webinar Recording
BLR Webinar: "Employment Taxes in Multiple States: Step-by-Step Calculation and Reporting Strategies""
Payroll Webinar Recording
BLR Webinar: "Payroll: How to Legally Handle Tax Levies and Garnishments""
IRS and ICE Audit Alert Webinar Recording
BLR Webinar: "IRS and ICE Audit Alert: How to Avoid and Manage Payroll and Recordkeeping Scrutiny""
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We’ve compiled a list of the 100 most commonly asked questions we have received on the federal Fair Labor Standards Act (FLSA) overtime regulations.
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This report, "Top 100 FLSA Q&As", is designed to provide you with an examination of the federal FLSA overtime regulations in Q&A format, including valuable tips for bringing your workplace into compliance in an affordable manner.

At the end of the report, you will find a list of state resources on wage and hour issues. This report includes practical advice on topics such as:
  • FLSA Coverage: How FLSA regulations apply to all employers and any specific exemptions from the overtime requirements
  • Salary Level: Qualifying for exemptions and nonexempt employees
  • Deductions from Pay: Deducting for violations, disciplinary reasons, sick leave, or personal leave

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