USA State Payroll Rates + Resources: State of Arkansas: Filing State Income Taxes, W2s, and 1099s
Purpose
The purpose of this documentation is to outline the processes and requirements associated with filing state income taxes as well as how to file W-2s and 1099s, if needed, in the state of Arkansas.
State Income Tax Withholding
Form AR4EC, State of Arkansas Employee's Withholding Exemption Certificate, is the Arkansas equivalent of the federal Form W-4. Every employee, on or before the date of commencement of employment, shall furnish his or her employer with a signed Arkansas Employee's Withholding Exemption Certificate relating to exemptions and/or an additional amount to be withheld each pay period.
Employers are required to keep copies of completed state AR4EC forms for their employees in their files. The forms serve as verification that state income taxes are being withheld according to the employee’s instructions and needs to be available for inspection if the state requests it.
The Forms W-4 and AR4EC generally are valid until the employee provides new ones. However, employees who claim exemption from withholding must renew the exemption annually by filing new Forms W-4 or AR4EC by February 15th each year.
State Income Tax Withholding Reporting and Deposits
New employers are classified as a Monthly Filer and will report accordingly until notified by the Commission of Revenue for any change in classification.
Other classifications (determined by the Commission of Revenue) are Annual Filer and EFT Filer:
| Classification | Payment and report due | Submittal form | Threshold |
| Monthly | On or before the 15th day of the following month | Payment voucher (Form AR941M - provided by the state) or online at ATAP | Amount withheld does not meet the Annual or EFT thresholds below |
| Annual | By January 31st of the following year | Payment voucher (Form AR941M - provided by the state) or online at ATAP | Amount withheld is under $1,000 for a calendar year |
| EFT / Monthly | On or before the 15th day of the following month | Online at ATAP | Amount withheld is $20,000 or more each month |
If a due date falls on a weekend or legal holiday, your return or deposit is due on the next business day.
W-2 and 1099 Forms
Send the state copies of your W-2s with the ARW-3 (Transmittal of Wage and Tax Statement) and the state copies of your 1099s along with a copy of your federal transmittal Form 1096 to the address below or through ATAP by January 31st.
Withholding Tax
P.O. Box 8055
Little Rock, AR 72203-8055
By February 28th, you also need to file form AR3MAR (either paper form or through ATAP), Employers Annual Reconciliation of Income Tax Withheld and pay any tax due for the previous calendar year.
Good to Know!
You must submit 1099s that have Arkansas withholding to the state even if you participate in the Combined Federal/State program.