Arkansas employer tax information
About Arkansas employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in Arkansas, you must be registered with the Arkansas Department of Finance and Administration and Arkansas Department of Workforce Services so we can pay and file your state taxes.
The Arkansas Department of Workforce Services typically requires employers to file and pay unemployment taxes starting in the quarter that wages are first paid. If you become liable for unemployment taxes and register an account in a later quarter, it may be necessary to file these taxes retroactively. Visit the Arkansas Department of Workforce Services website or contact the AR Department of Workforce Services directly to determine your requirements and ensure any outstanding tax filings are completed promptly to avoid penalties.
Arkansas residents whose permanent residence is within the city limits of Texarkana, Arkansas may claim exemption from Arkansas individual income taxes. Square Payroll will not automatically exempt employees based on their addresses. Employees must explicitly claim exemption. You can find more information on this exemption on the Arkansas Department of Finance and Administration website or by contacting the agency at 501-682-7290.
Arkansas payroll tax details
Square Payroll processes the following forms per the frequency to the listed state agencies.
Arkansas Department of Finance and Administration
-
Form AR941M (Withholding Tax Payment): filed monthly
The withholding tax payment made by Square Payroll services as both the payment voucher and filing. This form will not appear under your Tax Forms in your Square Dashboard Dashboard.
Form AR3MAR (Withholding Tax Annual Reconciliation): filed annually
W-2 Reporting: filed annually
Arkansas Department of Workforce Services
Form DWS-ARK-20 (Unemployment insurance filing/payment): filed quarterly
Arkansas New Hire Reporting Center
New Hire Reporting: filed per each new employee
Make Arkansas state payroll tax payments
To make Arkansas withholding tax payments, you must be registered with the Arkansas Department of Finance and Administration (DFA) and have an Arkansas State Income Tax ID Number. If you’re not registered with the DFA, register online at the Arkansas Taxpayer Access Point website or by completing Form AR-1R, Combined Business Tax Registration.
To pay online:
- Sign in to Arkansas Taxpayer Access Point (ATAP).
- Go to Customers > My Accounts and open the appropriate account.
- Select Make a payment.
For questions about withholding tax payments, visit the AR DFA website, send an email to ATAP_Help@dfa.arkansas.gov (with your tax identification number or account ID), or call them at 501-683-2827.
To make Arkansas unemployment tax payments, you must be registered with the Arkansas Department of Workforce Services (DWS) and have an Arkansas Department of Workforce Services ID Number. If you’re not registered with the DWS, you can register online at the Arkansas Division of Workforce Services website.
To pay online, sign in to the Arkansas Tax21 website.
For questions about unemployment tax payments, visit the AR DWS website, send an email to ADWS.Info@arkansas.gov (with your tax identification number or account ID), or call them at 855-225-4440.
Make Arkansas payroll withholding tax filings
Annual reconciliation returns are due by February 28 for the preceding calendar year. You must file an annual reconciliation that summarizes the employee taxes you’ve withheld during the year. The annual reconciliation is due in addition to providing each of your employees with a federal Form W-2 summarizing the employee’s withholding for the year. You should attach the state copies of the W-2s sent to all of your employees working in Arkansas with the ARW-3, Transmittal of Wage and Tax Statement. Larger employers are required to file W-2s electronically.
- To file online: Go to the Arkansas Taxpayer Access Point (ATAP) website.
- To file by mail: Call 501-682-7290 to request blank Arkansas Withholding Tax Returns (AR-3MAR) or payment vouchers (AR941M, AR941A) and the Arkansas Withholding Tax Section will mail the forms to your business in two to three weeks. Make your checks payable to the Department of Finance and Administration and mail them to:
Individual Income Tax Section Withholding Branch,
P. O. Box 8055
Little Rock, AR 72203-8055.
For questions about withholding tax payments, contact the Arkansas Department of Finance & Administration at 501-682-7290 or withholding@dfa.arkansas.gov.
Arkansas W-2s must be filed by January 31 for the preceding calendar year. W-2s may be submitted electronically or by mail. If you have 250 or more W-2s, you are required to file electronically. Mailed submissions need to include a completed Form ARW-3 (Transmittal of Wage and Tax Statement), and a copy of your Federal Transmittal Form 1096.
- To file online: Go to the Arkansas Taxpayer Access Point (ATAP) website. If you are not an ATAP member, you can submit your files using the DFA’s W-2 File Submission Service.
- To file by mail: Attach paper copies of W-2s to Forms ARW-3 and 1096, and mail to the Withholding Branch at the address indicated on the form. You may also send your W-2s in CD-ROM or DVD format in place of the paper copies.
For questions about W-2 filings, contact the Arkansas Department of Finance & Administration at 501-682-7290 or withholding@dfa.arkansas.gov.
Make Arkansas unemployment insurance tax filings
Unemployment insurance tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
- To file online: Go to the Arkansas Online Unemployment Insurance Employer Services website to file, and pay any taxes due using Electronic Funds Transfer (EFT).
- To file by mail: Download Form DWS-ARK-209B from the UI Employer Forms section of the website. Include a check for any payments due with your paper report.
You must file wage reports on a quarterly basis whether or not wages have been paid in the quarter. You will be subject to a penalty if you fail to file.
For more information on state unemployment taxes, contact the Arkansas Department of Workforce Services at 501-682-2121 or ADWS.Info@arkansas.gov.
Amend duplicate tax filings in Arkansas
The Arkansas Department of Finance and Administration allows you to correct any payroll that was misreported on a previously submitted Form AR3MAR by submitting an amended Form AR3MAR. Note this form is required for monthly tax filers.
Here are some general guidelines for completing your amended return:
- Sign in to ATAP to file electronically, or contact the DFA to obtain a paper form to file by mail.
- Submit your completed form online or mail your paper return to the address listed on the form.
File your amended Form AR3MAR as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Department of Finance and Administration at 501-682-7105 or visit the Arkansas Department of Finance and Administration website.
The Arkansas Department of Finance and Administration (DFA) allows you to correct any payroll that was misreported on a previously submitted Form W-2 or Form ARW-3 by submitting Form W-2C in addition to an amended Form ARW-3. To amend this form:
- Obtain a copy of the Form W-2C(s) that was filed with the IRS.
- Download Form ARW-3 and write “Amended” clearly at the top of the form.
- Mail your completed returns to the address listed on the Form ARW-3.
File your Forms W-2c and Form ARW-3 as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Department of Finance and Administration at 501-682-7105 or visit the Arkansas Department of Finance and Administration website.