Country Payroll Guide USA – Arkansas

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Key Facts

Capital
Little Rock
Date format
mm/dd/yyyy
Currency
United States Dollar (USD)
VAT
the standard rate is 6.5%

Contributions

Employers

Unemployment (State)
Unemployment (State) - 0.3% to 14.2%
Unemployment - New Employer (State)
Unemployment - New Employer (State) - 3.1%
FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2%
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45%
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6%
Total Employment Cost
Total Employment Cost - Up to 27.85%

Employees

FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2%
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45%
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6%
Total Employee Cost
Total Employee Cost - 13.65% to 14.55%

Minimum Wage

Minimum Wage
The minimum wage in Arkansas is 11 USD per hour.

Payroll

Payroll Cycle
Monthly, Bi-Monthly
13th Salary

There are no statutory laws on 13th salary.

Income Tax

Employee Income Tax (State - Low Income Bracket)
0 - $4,699 = 0%
Employee Income Tax (2) - Single filers, married couples
$4,700 - $9,199 = 2%
Employee Income Tax (3) - Single filers, married couples
$9,200 - $13,899 = 3%
Employee Income Tax (4)
$13,900 - $22,899 = 3.4%

Employee Income Tax (State - Middle Income Bracket)

Employee Income Tax (State - Middle Income Bracket) (1)
0 - $4,699 = 0.75%
Employee Income Tax (State - Middle Income Bracket) (2)
$4,700 - $9,199 = 2.50%
Employee Income Tax (State - Middle Income Bracket) (3)
$9,200 - $13,899 = 3.50%
Employee Income Tax (State - Middle Income Bracket) (4)
$13,900 - $22,899 = 4.50%
Employee Income Tax (State - Middle Income Bracket) (5)
$22,900 - $38,499 = 5%
Employee Income Tax (State - Middle Income Bracket) (6)
$38,500 - $82,000 = 5.9%

Employee Income Tax (State - High Income Bracket)

Employee Income Tax (State - High Income Bracket) (1)
0 - $4,200 = 2%
Employee Income Tax (State - High Income Bracket) (2)
$4,201 - $8,300 = 4%
Employee Income Tax (State - High Income Bracket) (3)
$8,301 or more = 5.9%

Federal Tax

Federal Tax (1)
0 - $9,875 = 10%
Federal Tax (2)
$9,876 - $40,125 = 12%
Federal Tax (3)
$40,126 - $85,525 = 22%
Federal Tax (4)
$85,526 - $163,30 = 24%
Federal Tax (5)
$163,301 - $207,350 = 32%
Federal Tax (6)
$207,350 - $518,400 = 35%
Federal Tax (7)
Over $518,400 = 37%

Working Hours

General Working Hours

40 hours per week.

Overtime

Overtime must be paid at a minimum of 150% of the employee’s regular wage.

Leave

Paid Time Off

There are no statutory laws regarding annual leave in Arkansas.

Public Holidays

12 public holidays.

Sick Days

There are no statutory laws in Arkansas regarding sick leave, however, an employer may be obligated to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid leave, once they have worked a minimum of 12 months, at least 1,250 hours over the past 12 months, and work at a location where the company employs 50 or more employees within 75 miles.

Whether an employee has worked the minimum 1,250 hours of service is determined according to the Fair Labor Standards Act.

Maternity Leave

Maternity leave falls under FMLA.

Paternity Leave

Paternity leave falls under FMLA.

Parental Leave

Parental leave falls under FMLA.

Other Leave

Not applicable.

Termination

Termination Process

In Arkansas, both the employer and employee can terminate the employment contract at any time, once no discrimination has taken place in the process.

Notice Period

Notice period is not required.

Severance Pay

There is no requirement for severance pay, it is a matter of agreement between an employer and an employee.

Probation Period

Probation periods will be set out in the contract of employment where necessary.

Visa

Employment Visa

In general, work visas are based on a specific offer of employment. In most cases, a petition must be filed and approved by the United States Citizenship and Immigration Services (USCIS) before applying for the visa at a U.S. Embassy.