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For questions about withholding tax payments, contact the Arkansas Department of Finance Administration at 501-682-7290 or withholding@dfa.arkansas.gov.
How to Calculate State Withholding Tax from Your Paycheck Compute the employees gross pay for the current pay period. Subtract voluntary pre-tax contributions (e.g. 401(k), health insurance). Using your states tax guide, deduct the appropriate percentage from the newly adjusted total.
Basically, a withholding allowance is an exemption from tax for a portion of your wages. So, the more allowances you claimed, the less your employer withheld for taxes. (And, of course, fewer allowances translated into more withholding.)
Generally, you want about 90% of your estimated income taxes withheld and sent to the government. 12 This ensures that you never fall behind on income taxes (something that can result in heavy penalties) and that you are not overtaxed throughout the year.
Withholding Formula (Effective Pay Period 15, 2024) Net Taxable Income:Amount of Tax: $92,501 but not over $92,601 3.90% minus $105.50 $92,601 but not over $92,701 3.90% minus $95.50 $92,701 but not over $100,001 3.90% minus $85.50 Over $100,001 3.90% minus $85.5034 more rows Aug 30, 2024
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Arkansas has a graduated state individual income tax, with rates ranging from 2.00 percent to 4.40 percent. Arkansas has a graduated corporate income tax, with rates ranging from 1.0 percent to 4.8 percent.
An employer is required to withhold tax from wages of employees who work within the State of Arkansas. An employer is not required to withhold Arkansas tax from the wages of any employee who does not work within the state of Arkansas. However, the employees wages are still taxable.
Arkansas Employers Annual Reconciliation Form AR3PAR Form AR3PAR is an Annual Reconciliation used to report the total income taxes withheld from employees/contractors and taxes remitted to the state. Its also used to claim an overpayment refund or pay if the taxes are underpaid. Information Reported on AR3MAR.

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