Arkansas Code § 26-51-905 - Withholding of Tax

(a) (1) Every employer making payments of wages to employees shall deduct and withhold from the employees' wages an amount determined from withholding tables promulgated by the Director of the Department of Finance and Administration and furnished to the employer.

(2) The full amount deducted and withheld from any employee's wages during the income year shall be credited against the tax liability of the employee under the Income Tax Act of 1929, ยง 26-51-101 et seq., for that year.

(b) (1) Notwithstanding the provisions of subsection (a) of this section, every employer who withholds less than one thousand dollars ($1,000) for a full year's withholding shall report and remit annually on a date specified by the director any amounts so withheld by the employer.

(2) An employer shall be advised by the director of the employer's classification and shall report as classified until such time as the employer advises the director in writing that the employer no longer has employees or the employer is closing the business.

(3) However, it shall be the duty of the employer to report to the director at the end of each income year all wages paid to any such employees on the same forms provided in this subchapter for making employer annual withholding statements in order that the director may determine the tax liability, if any, of those employees during that income year.

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Last modified: November 15, 2016