New Businesses
Taxable wage base = $7,000
Rate = 3.1%
A business with no previous employment record in Arkansas is taxed at 3.1% on the first $7,000 of each employee’s earnings until an employment record is established, usually within three years.
Existing Arkansas Businesses
Rate = 0.1% - 14.0%
Each business’s employment record is determined primarily by its taxable payroll and history of employee voluntary termination. The tax is determined by past experience and the amount of the reserve ratio. The reserve ratio is the excess of contributions paid over benefits charged as related to payroll. The higher the reserve-ratio, the lower the tax rate.