Congratulations on your decision to become a new employer in Arkansas! You will need a few things in place before you run your first payroll. For Arkansas employer registration help, check out our partner, CorpNet.
Federal and Arkansas State Tax Accounts
Federal Tax Accounts
Apply for an EIN
Your small business will need to have an Employer Identification Number, (also known as an EIN or FEIN) if you do not already have one.
If you do not have one, the simplest (and preferred way) is to apply for an EIN with the IRS online. There is no cost to apply for an EIN.
To read more about applying for EIN’s, read our help article, “Your Step-by-step Guide on How to Apply for EIN”
Enroll in EFTPS
Although it is not required, we recommend enrolling in the Electronic Federal Tax Payment System (EFTPS). You can easily register online.
You will need to have this account to make tax payments online or view any tax filings made on your behalf by Patriot Software if you are a Full Service Payroll customer.
To find out more about EFTPS, please read our article, “What Is EFTPS?”
Arkansas State Tax Accounts
Register With AR Department of Finance and Administration
As an Arkansas new employer, you will need to register with the Department of Finance and Administration for a withholding tax account number for your state income taxes (SIT). This can be done online at the Arkansas Taxpayer Access Point.
Register With Arkansas Department of Workforce Services
You will also need to register with the Arkansas Department of Workforce Services for a state unemployment insurance (SUI) tax account number. This can also be done online here.
Get Your SUTA Rate
You will be given a unemployment taxation rate every year, which is determined by the Department of Workforce Services.
Th new employer SUTA rate in Arkansas is 2.0% for 2026.
To learn more about SUTA tax, please read our article “What Is SUTA Tax?”
State-mandated Insurance
Sign up for Workers’ Comp Insurance
You must have workers’ comp insurance if you have at least 3 employees in Arkansas. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Arkansas here.
Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, ERGO NEXT Insurance. You can get a free quote with ERGO NEXT here.
Setting Up Your New Employee
Fill Out Form I-9
Have your employees fill out the required Form I-9. This is a two-part form. Employees fill out the top half of the I-9, while the employer fills out the bottom.
To learn more about the Form I-9, please read “Form I-9 In a Nutshell”
You must retain each employee’s completed Form I-9 as long as the individual works for you.
For more information, please read “What Should Be in an Employee File?”
You may want to Enroll in E-verify and submit employee information, although it is not required. For more information, read our help article, “What Is E-Verify?”
Have Employee Fill Out Federal Form W-4
Have your new employee fill out Form W-4, Employee’s Withholding Certificate.
For more information, read our help article, “What Is a W-4 Form, and What Is it Used for?”
Have Employee Fill out State Form AR4EC
The state employee withholding form AR4EC is required for state income taxes (SIT).
Report New Hires
Report new hires online with the Arkansas New Hire Reporting Center within 20 days from the date of hire or rehire.
For more information, please read, “What Is New Hire Reporting?”
Meet Minimum Wage Requirements
Arkansas minimum wage is required for all employers with four or more employees. The minimum wage is $11.00 for 2026.
You need to display the minimum wage poster for your employees where they can read it.
Obtain Labor Law Posters
Get annual posters and all federal, state, county, and city labor law updates with Patriot’s labor law poster store, powered by PosterElite!
Once you have all the necessary information, you will be able to set up your payroll for your business.
As an employer, you will be required to keep employee payroll records for at least three years. For more information, please read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list for new employers. Please check with your state and federal government for full compliance.