Hibou Odoo Suite Enterprise: 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:

ClassificationPayment and report dueSubmittal formThreshold
MonthlyOn or before the 15th day of the following monthPayment voucher (Form AR941M - provided by the state) or online at ATAPAmount withheld does not meet the Annual or EFT thresholds below 
AnnualBy January 31st of the following yearPayment voucher (Form AR941M - provided by the state) or online at ATAP
Amount withheld is under $1,000 for a calendar year
EFT / MonthlyOn or before the 15th day of the following monthOnline at ATAPAmount 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.