Arkansas Payroll Updates - November 2024

Week Of 11.11.2024

Arkansas Unemployment Tax Rates for 2025

Arkansas announced changes to its unemployment insurance rates for 2025. The Arkansas Department of Commerce's Division of Reemployment, which oversees the state's unemployment insurance program, confirmed that while the taxable wage base will remain at $7,000 per employee, other key adjustments are forthcoming. Notably, the administrative assessment fee will be reduced to 0.1% for fiscal year 2025, down from 0.125% in 2024. The experienced employer rate range will shift slightly from 0.200% to 10.100% (0.225% to 10.125% in 2024), and new employers will face a rate of 2.0% (2.025% in 2024), which includes the lowered administrative assessment.

Arkansas No Changes Expected to Withholding Tax Tables Next Year

The Arkansas Department of Finance and Administration does not expect to issue any changes to its withholding tax tables in 2025, according to a spokesperson for the agency. The state issued new withholding tables in July 2024 due to a cut in the income tax rate from 4.4% to 3.9%. According to the spokesperson, these tables may continue to be used until further notice.

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