USA State Payroll Rates + Resources: State of Arkansas: Obtaining a TIN + Unemployment Insurance
The purpose of this documentation is to outline the processes and requirements associated with becoming a new employer in the state of Arkansas. Specifically, we will be covering how to obtain a Tax Identification Number and Register for Unemployment Insurance.
Good to Know!
Federal Employer requirements (obtaining a federal identification number, withholding of federal income tax, FICA, and filing of all applicable federal returns (FUTA, 940, 941, and 1099-C) will not be covered below - just the state of Arkansas's requirements. Click here for a basic (not all-inclusive) IRS checklist for Starting a New Business.
Registering for Withholding Tax
Good To Know!
If you have already signed up on the Arkansas Taxpayer Access Point website, skip down to the next section.
An employer is required to withhold tax from the wages of employees who work within the State of Arkansas. You can register your business at the Arkansas Taxpayer Access Point. Click on Register New Business.
Registering for Unemployment Insurance Account
If a business meets one of the following conditions, it is considered an “employer” and required to pay unemployment taxes on its employees' wages throughout the calendar year:
Employ one or more workers for some portion of ten or more days during a calendar year, or;
Acquire the business or part of the business of an employer subject to unemployment taxes, or;
Pay $1,000 or more cash wages in a calendar quarter to individuals employed in domestic service, or;
Pay $20,000 or more cash wages in any calendar quarter to individuals employed in agricultural labor, or employ at least ten workers for some part of a day in each of twenty different weeks in a calendar year, or;
Voluntarily elect to provide unemployment coverage to workers even though it is not required. Such an election must include all employees in all of the employer’s places of business and is binding for a minimum of two calendar years.
For an Arkansas state unemployment account, you can register at the Arkansas Division of Workforce Service. Click on Register for DWS Employer-Account.
After these steps above are complete, please see Unemployment Insurance Reporting & Payments.