Arkansas registration and tax info

What you need to do

• Add a new work address in Gusto for a different state, and;
• Hire an employee and assign them to that address.

Cost and timeline

Prices vary by state. You can see the cost, process, and how long it takes in step four below.

What the process looks like

1. You give us some basic business information.
2. Gusto and CorpNet will check your info.
3. Your registration is usually submitted within 3–5 business days.
4. Watch for mail with your tax account numbers and rates from the state. The state usually sends your tax account numbers and rates directly to you.
   
   • Heads up: If CorpNet doesn’t enter some information into Gusto, they can show you how to do it yourself.

Third-Party Agent (TPA) authorization reminder

Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, CorpNet doesn’t set this up, so you’ll have to do it yourself after registration.

Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA isn't needed right now.

Prices vary by state. You can see the cost, process, and how long it takes in step four below.

1. Sign in to Gusto as an admin.
2. Go to Taxes & compliance and click Tax setup.
3. Under “[State name] Tax Setup”, click Have us register for you.
   • The state will only show up if you’ve added a company work address there and assigned an employee to it.
4. Look at the price, process, and how long it will take.
   
   • We will not charge you until you send in your order.
5. Click Continue.
6. Answer a few questions to see if you're eligible.
   • We can only register for you if you do not already have a state account.
7. Click Save & continue.
8. Enter some company information (we'll fill in what we already know).
9. Click Save & continue.
10. Tell us who the responsible party is. This is the person in charge of the company’s tax matters and good standing. 
    • If you're a nonprofit and need help, check our FAQs below.
11. Click Save & continue.
12. Enter some state-specific operational information.
13. Click Save and continue.
14. Review all info carefully. Mistakes can delay things. 
    • Heads up: State and local agencies might add fees or take longer than expected. CorpNet will notify you if that happens.
15. Check the box to confirm all your info is correct and agree to the Terms of Service.
16. Click Send registration order.
    • We’ll email you with order updates and add the cost to your next monthly bill.

Some reminders

• You need to give Gusto third-party access (TPA) to your tax accounts. CorpNet doesn’t do this for you.
  • Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA isn't needed right now.
• Watch your mail for registration info. The state will send you your tax account numbers and rates.
  • CorpNet can help you enter tax info into Gusto, but they won’t do it for you.

When your order is complete, you’ll receive emails from both Gusto and CorpNet. They’ll detail the next steps, which include:

• Reviewing registration details
• Any other state-specific instructions

Before your order is done, use the link in the state registration email from Gusto to check your order's status.

You can also check the status in your Gusto account:

1. Click Taxes & compliance and select Tax setup.
2. Scroll to the state's section.
3. Click Check the status of your registration.

If your order is still in progress, you can cancel from your Gusto account:

1. Click Taxes & compliance and select Tax setup.
2. Scroll to the state's section.
3. Click Check the status of your registration.
4. On the right-side of the page, under “Changed your mind?”, click Cancel your order.
5. Let us know why you're canceling.
6. Click Cancel your order.

If you were already charged, you'll get a refund in a few business days.

If you canceled your order but would like to re-open it, contact CorpNet directly at (888) 449-2638. Or email them at [email protected].

Q: Can I run payroll before my registration is done?

A: Yes, you can usually run payroll before all state tax info is added in Gusto. You may be asked to enter tax rates and tax deposit frequencies, but can use temporary info.

Important reminders

• We cannot submit tax payments or filings until all tax account numbers are added.
• If you run payroll before finishing registration, you might get notices about late tax payments or filings. Any penalties are your responsibility.
• If you’re only registering for unemployment tax and don’t have your rate yet, use the new employer rate for your state in Gusto until you get the correct one. Update the rate once you get it.

Q: Can I use Gusto to register in a new state without a Federal Employer Identification Number (FEIN)? What if my business is merging or being acquired?

A: No, you need a FEIN in Gusto to get registration help for state taxes.

If your business is merging or being acquired, CorpNet cannot help with registration. You'll need to work with a tax advisor and state agencies directly.

Q: Where can I find my tax information?

A: You can find your tax info in several places: 

• In Gusto: Go to Taxes & compliance and click Tax setup, then scroll to state tax setup.
• In CorpNet: Create an account and sign in to see your info.
• In your state’s online portal: Find your account details there.
• By mail: Some agencies send tax info by mail. If that happens, CorpNet will let you know, and you'll need to enter this info in Gusto.

Gusto’s state tax registration service does not contain tax, legal, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer, HR expert, or accountant for specific guidance.

Q: What if I'm not liable for unemployment tax yet?

A: If you want CorpNet to start setting up an unemployment account number before you're liable, you can:

• Use today’s date as the first date the employee(s) in the new state will be paid. 
• Enter the start date of the quarter you expect to meet the liability threshold.
  • Check the state’s liability info in the Register on your own section (go to the SUI dropdown). If there’s no info, contact the state agency directly.

Q: Can CorpNet help if the responsible party is international without an ITIN or SSN?

A: CorpNet might be able to help. Contact them at [email protected] or call 1(888) 449-2638.

Q: Why can’t I enter 0% ownership for the responsible party or add a commercial owner?

A: Some states have a 1% minimum for the responsible party ownership percentage. These states include: ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI.

You’ll need to place registration orders directly with CorpNet outside of Gusto or register directly with the agency.

Some states require an individual owner to be listed. If you’re a non-profit or unsure, contact CorpNet for help at [email protected] or call 1(888) 449-2638.

Q: Does CorpNet help with giving Gusto third-party access (TPA) for tax payments?

A: Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, CorpNet doesn’t set this up, so you’ll have to do it yourself after registration.

Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA isn't needed right now.

Q: Does CorpNet help close state tax accounts?

A: No, you'll need to close the tax account yourself.

• Arkansas Department of Finance and Administration (DFA) – income tax withholding
• Arkansas Division of Workforce Services (ADWS) – unemployment tax  

Register with the Arkansas Department of Finance and Administration (DFA) to receive:

• Your DFA Account ID and;
• Your filing schedule.

You should receive your DFA Account ID and filing schedule by mail in 1-2 weeks. Keep this time frame in mind when planning your first Arkansas payroll. 

1. Go to the Arkansas Department of Finance and Administration Arkansas Taxpayer Access Point (ATAP).
2. Scroll to the “Businesses” section, and click Register a Business.
3. Learn about what you'll need to register before you get started.
4. Click Next and complete all remaining prompts.   
   
   • If you have questions about completing registration, call the agency at (501) 682-7290.

If you're having any Gusto-specific authorization issues, scroll to the "Troubleshoot Department of Finance and Administration authorization issues" headline below.

Enter the tax account information in Gusto

Once a valid Arkansas work address is added in Gusto for one or more employees, add your tax account information:

1. Click Taxes & compliance and select Tax setup.
2. Scroll to the “Arkansas Tax Setup” headline and select Manage taxes.
3. Enter your DFA Account ID.
   • A "tax account ID" is different from the "DFA Account ID"—we'll need you to enter the "DFA Account ID".
4. Enter your assigned filing frequency—if you're not sure what your frequency is, select Monthly.
5. Click Save.

Troubleshoot Department of Finance and Administration authorization issues

Some agencies require special authorization for Gusto to pay or file your taxes. If we're having trouble getting access to your account, confirm that the company details entered in Gusto match exactly what the agency has on file. You can do this by calling them at (501) 683-2827 or (877) 280-2827.

Here's what should match:

• Official company name/address
• FEIN (Federal Employment Identification Number)
• Withholding ID number
  • Make sure you've added the ‘Withholding’ tax type to your account. 
• Zip Code
  • This is usually a zip code for a business location in Arkansas. The zip code you have in Gusto for your Arkansas business location(s) should match what you entered on your registration form.
• Last amount paid to the Department of Finance and Administration
  • For brand-new businesses: This may be the $50 Sales Tax Permit Fee.
    • If there was no permit fee, and the business is new to Arkansas, enter $0.
  • For existing businesses that were paying taxes outside of Gusto: We'll need the last withholding tax deposit made to Arkansas.

Most companies become liable for Arkansas unemployment insurance tax once the company has at least one Arkansas-employee working 10 or more days during a calendar year.

When you become liable can vary by business type (general, non-profit, etc.), so we recommend contacting the agency directly to confirm when your specific business is liable. 

Running payroll in Gusto before you're liable for SUI

If you need to run payroll and do not yet meet the above requirements, enter the new employer rate for your state in the meantime. Update the rate once you receive it.

You'll want to make sure during registration that the AR Division of Workforce Services knows when you plan to become liable. Gusto will eventually need:

• Your unemployment account number—required to file and pay taxes on your behalf.
• Your company-specific unemployment tax rate—assigned by the agency.

Register for unemployment tax

Registration takes about 5 minutes to complete, and you'll receive a confirmation email when you're done. Check out this employer handbook if you run into any issues. 

Register with the Arkansas Division of Workforce Services here. 

Unemployment tax rate (experience rate)

New employers should complete registration to get their agency-assigned new employer rate. The AR Experience Rate will also appear on the Rate Notice you receive from the Arkansas Division of Workforce Services.

If you do not know your rate, call the agency directly at (501) 682-3798.

Enter the tax account information in Gusto

Once a valid Arkansas work address is added in Gusto for one or more employees, add your tax account information:

1. Click Taxes & compliance and select Tax setup.
2. Scroll to the “Arkansas Tax Setup” headline and select Manage taxes.
3. Enter your unemployment account number and unemployment rate.
   
   • If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.
   • Learn how to update your rate.

Withholding account ID (also called a DFA account ID) and filing frequency

If you've run payroll in Arkansas previously, find your Withholding Account ID (also called a DFA Account ID) and filing frequency by:

• Reviewing Payment Vouchers received from the Department of Finance and Administration, or;
• Calling the agency at (501) 682-7290. 

Troubleshoot Department of Finance and Administration authorization issues

Some agencies require special authorization for Gusto to pay or file your taxes. If we're having trouble getting access to your account, confirm that the company details entered in Gusto match exactly what the agency has on file. You can do this by calling them at (501) 683-2827 or (877) 280-2827.

Here's what should match:

• Official company name/address
• FEIN (Federal Employment Identification Number)
• Withholding ID number
  • Make sure you've added the ‘Withholding’ tax type to your account. 
• Zip Code
  • This is usually a zip code for a business location in Arkansas. The zip code you have in Gusto for your Arkansas business location(s) should match what you entered on your registration form.
• Last amount paid to the Department of Finance and Administration
  • For brand-new businesses: This may be the $50 Sales Tax Permit Fee.
    • If there was no permit fee, and the business is new to Arkansas, enter $0.
  • For existing businesses that were paying taxes outside of Gusto: We'll need the last withholding tax deposit made to Arkansas.

Unemployment tax ID (also called a DWS ID) and tax rate

You can find your DWS ID on Arkansas Division of Workforce Services notices (ex. Rate Notices of the Quarterly Contribution and Wage Report: Form DWS-ARK-209B) .

Unemployment tax rate (experience rate)

The AR Experience Rate appears on the Rate Notice that you receive from the Arkansas Division of Workforce Services each year, and typically takes effect on Jan 1.

If you do not have your assigned rate yet, enter the new employer rate for your state in the meantime—update the rate once you receive it.

Once a valid Arkansas work address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click Taxes & compliance and select Tax setup.
2. Scroll to the “Arkansas Tax Setup” headline and select Manage taxes.
3. Enter your unemployment account number and unemployment rate.
   
   • If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.
   • Learn how to update your rate.