Arkansas registration and tax info

• 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. Click on New Business Registration under "Quick Links" to first register your business with the state and obtain a tax account ID.
   • The "tax account ID" is different from the "DFA Account ID"—we'll need you to enter the "DFA Account ID" and filing schedule in Gusto.
3. Once you have your tax account ID, navigate back to the ATAP login page, and click Sign Up. 
   • If you have any 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 has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Arkansas Tax Setup" headline and select Manage taxes.
3. Enter your 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. To ensure successful authorization, verify that you've added the ‘Withholding’ tax type to your account. You'll also need to make sure the following information entered in your Gusto account matches what's on file with the Arkansas Department of Finance and Administration:

• Official company name/address
• FEIN - Federal Employment Identification Number
• Withholding ID number
• Zip Code
  • This is usually a business location zip code that's typically in Arkansas. The zip code you provide to Gusto for your Arkansas business location(s) should match what you entered on your registration form as your business location when you registered with the state.
• 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.

If Gusto is having trouble gaining access to your account, verify that the above information matches exactly what the agency has on file by calling them at (501) 683-2827 or (877) 280-2827.

Your company becomes liable for state unemployment insurance tax once the company has had at least one Arkansas-employee working for some portion of ten or more days during a calendar year.

Running payroll in Gusto before you're liable for SUI

If you need to run payroll and do not yet meet the above requirements, Gusto allows it—we just suggest you add the "New employer SUI tax rate" specific to Arkansas in the meantime.

• You can find the new employer rates for each state in this article, along with instructions on how to update the rate once you become liable and receive your company-specific agency assigned rate.

You'll want to make sure during registration that the AR Division of Workforce Services is aware of when you plan to become liable—eventually, Gusto will 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 should take about 5 minutes to complete, and you'll receive confirmation by email once done. Reference 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 the employer registration process to get their agency-assigned new employer rate. The AR Experience Rate will also appear on the Rate Notice that you receive from the Arkansas Division of Workforce Services.

If you're unsure, verify your rate by calling the agency directly at (501) 682-3798.

Click here to view state-by-state new employer rates and wage bases (not company-specific).

Enter the tax account information in Gusto

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 the Taxes & compliance section 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 need to update your account number: contact us from the Help or Priority support section of your account. There may be tax implications if taxes have already been paid or filed to an incorrect account number.
   • If you need to update your rate: follow the steps in this article. 

If your business has employees who live in Texarkana, Arkansas, or who live in Texarkana, Texas and work in Texarkana, Arkansas, they qualify for an exemption from Arkansas withholding tax. 

If either of these scenarios applies to your business:

• Have each eligible employee sign Form AR4EC(TX).
• Set up the employee exemption in Gusto.
• Let the Arkansas Department of Finance and Administration know that you have at least one exempt employee.

To let the agency know about an employee exemption, email [email protected] the following information:

• Subject: Requesting AR-TX Exemption Forms
• Body: Hello - My business has at least one employee who qualifies for the Texarkana withholding exemption. Can you please provide me with any forms that I need, and note this exemption for the DFA records?
• Business Name:__________
• Business FEIN:___________
• Withholding Account Number:________
• Business Address:_________

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

If you've run payroll in Arkansas previously, you can 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.
• Calling the agency at (501) 682-7290. 

Some agencies require special authorization for Gusto to pay or file your taxes. To ensure successful authorization, verify that you've added the ‘Withholding’ tax type to your account. You'll also need to make sure the following information entered in your Gusto account matches what's on file with the Arkansas Department of Finance and Administration:

• Official company name/address
• FEIN - Federal Employment Identification Number
• Withholding ID number
• Zip Code
  • This is usually a business location zip code that's typically in Arkansas. The zip code you provide to Gusto for your Arkansas business location(s) should match what you entered on your registration form as your business location when you registered with the state.
• 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.

If Gusto is having trouble gaining access to your account, verify that the above information matches exactly what the agency has on file by calling them at (501) 683-2827 or (877) 280-2827.

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

You can find your DWS ID for unemployment tax on Rate Notices of the Quarterly Contribution and Wage Report (Form DWS-ARK-209B) received from the Arkansas Division of Workforce Services.

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 January 1.

If you're not liable for unemployment insurance yet, we suggest you enter the Arkansas specific "New Employer SUI tax rate" found in this article in Gusto for the meantime. Once you receive your companys-assigned rate, update the rate in Gusto as soon as possible. 

If your business has employees who live in Texarkana, Arkansas, or who live in Texarkana, Texas and work in Texarkana, Arkansas, they qualify for an exemption from Arkansas withholding tax. 

If either of these scenarios applies to your business:

• Have each eligible employee sign Form AR4EC(TX).
• Set up the employee exemption in Gusto.
• Let the Arkansas Department of Finance and Administration know that you have at least one exempt employee.

To let the agency know about an employee exemption, email [email protected] the following information:

• Subject: Requesting AR-TX Exemption Forms
• Body: Hello - My business has at least one employee who qualifies for the Texarkana withholding exemption. Can you please provide me with any forms that I need, and note this exemption for the DFA records?
• Business Name:__________
• Business FEIN:___________
• Withholding Account Number:________
• Business Address:_________

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 the Taxes & compliance section 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 need to update your account number: contact us from the Help or Priority support section of your account. There may be tax implications if taxes have already been paid or filed to an incorrect account number.
   • If you need to update your rate: follow the steps in this article.