Please note: this article is about the Justworks Payroll product. Not sure which product you're using? Check out: How Do I Know Which Justworks Product I Have?
Paying employees in Arkansas
When hiring employees in new states, you will need to register for relevant state tax accounts to facilitate their payment. In Arkansas, you must be registered with the Arkansas Department of Finance and Administration (DFA)(income tax withholding) and Arkansas Division of Workforce Services (ADWS) (unemployment tax).
Alternatively, Justworks Payroll can handle the registration process for you. We offer state tax registration services to assist with registering your business in new states. To request registration, please contact us at support@payroll.justworks.com.
Your Arkansas Accounts and Rate Info
Registering for a Withholding Tax Account:
To register:
- Visit the Arkansas Department of Finance and Administration's Arkansas Taxpayer Access Point (ATAP).
- Scroll to the “Businesses” section and click on "Register a Business."
- Review the information on what you'll need to register before beginning.
- Click "Next" and follow the remaining prompts to complete the registration.
You should receive your DFA Account ID and filing schedule by mail within 1-2 weeks, so plan accordingly when preparing for your first Arkansas payroll.
If you have any questions during the registration process, contact the agency at (501) 682-7290.
Registering for an Unemployment Tax Account:
You will need to register online with the Arkansas Division of Workforce Services. Registration takes less than 10 minutes, and you'll receive a confirmation email once completed. If you encounter any issues, refer to the employer handbook for assistance.
Already Registered? Locate This Information
Locate Your Withholding Tax Account Number (DFA Account ID) and Filing Frequency:
If you've previously processed payroll in Arkansas, you can find your Withholding Account ID (also known as a DFA Account ID) and your filing frequency by:
- Reviewing Payment Vouchers from the Department of Finance and Administration, or
- Contacting the agency at (501) 682-7290.
Locate Your Unemployment Tax ID (DWS ID) and Tax Rate:
You can find your DWS ID on notices from the Arkansas Division of Workforce Services, such as the Rate Notices or the Quarterly Contribution and Wage Report (Form DWS-ARK-209B).
Entering State Tax Info in Justworks Payroll
Once you registered with the State and have a valid AR address added to your company’s offices, you can add your account info in Justworks Payroll by navigating to:
- Company > Settings in the left navigation bar
- Under ‘Company tax info’ click into “Arkansas” to edit the state tax information
In your Justworks Payroll account, you’ll want to enter your AR Withholding Tax Account Number (DFA Account ID), Unemployment Account ID (DWS ID) and Tax Rate.
Third-party admin access
As your payroll provider, Justworks Payroll will utilize the provided account information to manage and report your AR tax liabilities. Occasionally, the state may issue notices related to payroll taxes.
Justworks Payroll can examine these notices if granted Third-party admin access to your AR state tax account. During onboarding, we will request that you sign state specific TPA forms, which authorizes us to handle and report your taxes to the state.
Why is this important?
Justworks Payroll calculates tax liabilities as part of payroll processing. If we cannot access your AR state tax accounts, we must return any unremitted tax liabilities to your company bank account, requiring you to remit and file your company’s state taxes manually.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.