Arkansas Payroll Instructions

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Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2021 Payroll Tax Table Updates

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Turtle Creek Software provides free annual updates for Goldenseal withholding formulas, including tax tables for Arkansas withholding taxes.

The Arkansas state income tax withholding is based on a "stepped" tax table similar to the federal payroll withholding calculations. Tax formulas and rates changed in 2021, with percentage changes, and several more steps in the table. They've only changed three times in the past 30 years-- in 1998, 2015 and 2021). Unlike most states, Arkansas subtracts an adjustment from the percentage calculation for each step, rather than adding it.

Arkansas now has 6 steps all with the same rate, but with different adjustments. It's far from the oddest thing that states do, but it probably put the state in the top 10 for weird math.

Arkansas State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field.
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of Arkansas dependents into the State Exemptions field.
  7. Enter the Arkansas Tax Package into the Tax Package field. HINT-- If you don't see it in the list, you'll need to import the tax info first.
  8. Click OK.

NOTE-- Each entered state exemption results in a tax credit that is deducted from the annual gross tax

Arkansas State Unemployment Tax Instructions

In 2021, the Arkansas SUTA tax applies to the first $10,000 in annual wages for each employee (reduced in 2019 but then rebounded this year). The starting rate for new companies is currently 3.2%. After three years at that rate, the SUTA rate can vary between 0.8% and 10.7% depending on the fund balance and your company's past employment history.

To enter your Arkansas state SUTA tax rate into the Goldenseal construction payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items. Locate the Arkansas SUTA tax in the list, and double-click on it. HINT: If you don't see Arkansas SUTA in the list, you'll need to import your state's payroll info first.
  3. Enter the percentage rate that you pay into the percentage field to the right of Calculation method.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Arkansas Marital Status

Use the following to determine the value for the Marital Status popup menu in each Employee account for an Arkansas employee:

  • Single- single employee with one personal exemption
  • Married- married employee with two personal exemptions
  • Dual Income- married employee with one personal exemption
  • Head of House- employee claims Head of Family status
  • Other- not used

Arkansas Tax Contacts

Payroll Withholding website

Payroll Tax Office-- 501 682-7290
Forms-- 501 682-7076
Worker's Comp-- 501 682-3102

Arkansas Department of Finance and Administration
PO Box 1272 Little Rock AR 72203

Official State Lawn Ornament

'Bill Clinton slept here' sign.