Daniel Eisner is a payroll specialist with over a decade of practical experience in senior accounting positions.
Updated on September 28, 2023
Arkansas Paycheck Calculator
What Are Payroll Taxes?
Arkansas Payroll Taxes
Paying Payroll Taxes
Using a Payroll Tax Service
Use Arkansas Paycheck Calculator to estimate net or “take home” pay for salaried employees. Simply input salary details, benefits and deductions, and any other necessary information as prompted below, and let our tool handle the rest.
State
Where are you employed?
Salary
How much do you get paid annual?
Salary frequency
How often are you paid?
Marital status
What is your federal filing status?
Dependent(s)
Children under 17 and students under 24
All other dependents
Employee Location
Where do you live?
Benefits and Deductions
Help
The addition of employee benefits such as 401(k)s and health insurance can affect
how your paycheck is calculated. Please add any deductions for benefits offered by
your company.
Choose a calculation method:
Fringe Benefits
Help
Fringe benefits are additional non-cash benefits offered by employers and are
often taxable, which can affect an employee’s paycheck and final take-home pay.
Please skip this section if you don’t use any of these benefits.
Choose a calculation method:
Gross Pay
$0
Income taxes
0%
$0
Federal Income Tax
0%
$0
Alabama State Tax
0%
$0
Local Tax
0%
$0
FICA taxes
0%
$0
Social Security
0%
$0
Medicare
0%
$0
Additional Medicare
0%
$0
Pre tax
0%
$0
Post tax
0%
$0
What Are Payroll Taxes?
Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.
The Social Security tax is paid by both the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.
Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.
Each state also has specific state payroll taxes that must be withheld and paid.
Arkansas Payroll Taxes
In Arkansas, there are two payroll taxes to keep track of in addition to Social Security and Medicare.
Employers contribute to the state unemployment account, while employees pay personal state income tax, which is withheld from their paychecks.
SUTA
Companies must allocate a portion of their payroll taxes toward SUTA, which pays out benefits to the unemployed until they find a new job or the predetermined benefit runs out.
In Arkansas, SUTA rates vary based on the unemployment insurance paid from the employer’s account versus the amount of SUTA tax paid.
Arkansas unemployment insurance tax rates currently range from 0.1% to a maximum rate of 5.0%, plus the stabilization rate in effect for the current year. The upper range indicates that more payments in unemployment insurance have been made from an employer’s account than tax has been paid in for unemployment insurance. Act 1191 provides that beginning January 1, 2014, and thereafter, after two (2) consecutive years of being assessed additional contributions of four percent (4.0%), the additional contribution assessment shall increase to six percent (6.0%) for a basic rate of 12.0%. Furthermore, after two (2) consecutive years of being assessed an additional contribution of six percent (6.0%), the additional contribution assessment shall increase to eight percent (8.0%) for a basic rate of 14.0%.
To pay your withholding and payroll taxes, you’ll login to these websites. State income tax withholding payments are due monthly, while SUTA taxes are due quarterly.
Payroll and payroll taxes come with countless laws and restrictions, which is why many business owners turn to a payroll service provider to ensure their business remains fully compliant. It’s usually less expensive than creating a new staff position for managing payroll, and relatively easy.
You’ll just send over your digital timesheets and relevant information and the service provider will take care of the calculations, payments and taxes, freeing you up to focus on growing your business.
We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!
