Free Arkansas payroll tax
calculator (and AR tax rates)

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  • 1

    Pay Details

  • 2

    Exemptions

  • 3

    Federal Information

  • 4

    State Information

  • 5

    Locale Information

  • 6

    Voluntary Deductions

  • 7

    Calculate Paycheck

Welcome to our payroll calculator!

Before we jump in, who are you using this calculator for?

Thanks!

Our calculators are designed for employers, and they’ll ask for information you may not have. For a better experience, please check out this employee-focused paycheck calculator.

How much did your employee earn?

Gross Pay: This is the total amount of wages your employee earned before taxes and deductions are withheld.


For salaried employees, gross pay equals their annual salary divided by the number of pay periods per year. For hourly employees, gross pay equals the number of hours worked multiplied by their hourly wage.


(Don’t forget to add on any tips, commissions, or bonuses!)

Gross Pay Method: Is the gross pay amount based on your employee’s annual compensation, or by how many hours they worked in the last pay period?

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Pay Frequency: How often do you normally issue paychecks?

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

2020 W4: Would you like to use the 2020 withholding tables? Here’s an article that covers the 2020 W-4 updates if you aren’t sure.

Federal Filing Status: Select your employee’s filing status for federal withholding. This helps determine how much federal tax will be withheld.

Two Jobs: If the employee indicated that they have more than one job or are married and filing jointly with a working spouse, select Yes here.

Dependents Amount: Enter the amount your employee listed on Line 3 of their W-4, if any. This is where they claim dependents.

Other Income: If your employee listed another other income on line 4(a) of their W-4, enter the amount here.

Deductions: Enter any deductions that your employee listed on line 4(b) of their W-4, if applicable.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

Here’s your paycheck information:

Leave payroll to us.

We do all the hard work to set you up, starting at just $40 + $6 per employee.

Updated: October 1, 2024

This easy-to-use Arkansas payroll calculator is trusted by employers to quickly run payroll or look up AK 2024 state tax rates. All you have to do is input wage and W-4 information for each employee into the calculator, and it will do the rest.

Arkansas payroll calculator that figures federal payroll taxes

First and foremost, let’s talk about federal payroll taxes. Here’s a quick rundown of the components that go into federal payroll tax withholdings. If you would like a more detailed explanation on all of the steps below, head on over to our comprehensive step-by-step guide.

  • First, calculate gross wages, which is simply the amount of money an employee has earned during the last pay period.
    • For hourly employees, multiply the number of hours worked by their pay rate — and make sure you don’t forget to take overtime into consideration.
    • For salaried employees, divide each employee’s annual salary by the number of pay periods you have over the course of a year.
    • Bonuses, commissions, and tips are all part of gross wages as well.
  • Subtract any pre-tax withholdings. If your employees have 401(k) accounts, flexible spending accounts (FSA), health savings accounts (HSA), or any other pre-tax withholdings, subtract them from gross wages prior to applying payroll taxes.
  • Deduct federal income taxes, which can range from 0% to 37%. We won’t get into the nitty-gritty here, but you can find further withholding information through the IRS Publication 15-T.
  • Deduct and match any FICA taxes to cover Social Security and Medicare taxes:
    • For Social Security tax, withhold 6.2% of each employee’s taxable wages until they have earned $168,600 in a given calendar year. As an employer, you must match this tax.
    • For Medicare tax, withhold 1.45% of each employee’s taxable wages until they have earned $200,000 in a given calendar year. You must also match this tax. For employees who more than $200,000 per year, you’ll need to withhold an Additional Medicare Tax of 0.9%, which brings the total employee Medicare withholding above $200,000 to 2.35%. You don’t need to match the Additional Medicare Tax. Only employees are responsible for paying this tax.
  • Pay FUTA unemployment taxes, which is 6% of the first $7,000 of each employee’s taxable income. FUTA taxes come with a huge caveat that you should know about. You can claim a tax credit of up to 5.4% for state unemployment tax you pay, as long as you pay in full and on time. It’s an easy way to save a whopping 90%, so make sure you take advantage! Only you as the employer are responsible for paying FUTA taxes, so you don’t need to withhold FUTA from your employees’ paychecks.
  • Subtract any post-tax deductions. Most of your employees won’t have any post-tax deductions, but if they do, you will need to withhold things like court-ordered wage garnishments, child support, etc. Make sure you take these into consideration as well.
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Arkansas state payroll taxes

Now that we’ve gone through federal payroll taxes, let’s look at Arkansas state income taxes. The state charges a progressive income tax, broken down into six tax brackets. The 2024 tax rates will range from 2% on the low end to 4.4% on the high end. Employees who make more than $84,500 will hit the highest tax bracket.

 

There are no local taxes, so all of your employees will pay the same state income tax no matter where they live.

Arkansas state unemployment insurance

As an employer in Arkansas, you have to pay unemployment insurance to the state. The 2024 rates range from 0.1% to 14.0% on the first $7,000 in wages paid to each employee in a calendar year.

 

If you’re a new employer (congratulations on getting started!), you pay a flat rate of 3.1% (this is including a 0.3% stabilization tax).

 

Remember to pay in full and on time so that you can save 90% on your FUTA tax!

Most Arkansas businesses need to have a workers’ compensation policy in place. In our guide to Arkansas workers’ comp insurance, you can learn more about how coverage protects employees from workplace injuries and illnesses, as well as the requirements for employers.

Finished using the payroll calculator Arkansas businesses rely on?  Now cut those paychecks!

That’s all she wrote! You’ve checked payroll taxes off your to-do list so you can focus on growing your business. Once each employee’s net pay is calculated (after taking deductions and withholdings into consideration), you’re good to go. All you have to worry about is getting your employees paid on time as well as setting aside whatever you owe in FICA and unemployment taxes. Those numbers can add up quickly!

 

You will need to fill out Form 941 to file federal taxes on a quarterly basis, and Form 940 to report your annual FUTA liabilities. You can pay taxes online using the EFTPS payment system. All the IRS employment tax due dates can be found here.

More Arkansas payroll tax resources:

If you would like to learn more about Arkansas payroll taxes, here are some helpful links that we think can be useful:

 

Arkansas Department of Workforce Services

(855) 225-4440 | UI Employer Information | UI Employer Services

 

Arkansas Department of Finance and Administration

(501) 682-7290 Withholding@dfa.arkansas.govWithholding Tax | Tax Due Dates

More helpful payroll calculators

With the calculator at the top of this page, Arkansas employers can quickly calculate gross pay, net pay, and deductions (and feel confident when cutting paychecks). But sometimes, businesses have to do a little more number crunching. For example, do you occasionally give bonuses to high-performing employees? Remember that these payments are considered supplemental wages in the eyes of the IRS, and, therefore, subject to tax withholding. Furthermore, as employees come and go, you may need to occasionally calculate some final paychecks. So, if you can use a little more help managing the math, check out some of the calculators listed below.

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