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REMOTE EMPLOYEES

Hiring a remote employee in Arkansas

Your company is in another state and one employee lives and works from home in Arkansas. Which state's taxes apply, unemployment, paid leave and Arkansas's employer rules, each with its official source.

Facts from the official sources listed at the end of this page; the oldest was read from an archived copy dated September 13, 2026. For employers. General information, not legal or tax advice: confirm a rule with the agency before you rely on it.

Arkansas at a glance

Income tax
Arkansas withholding
Reciprocity
None
Unemployment
$7,000 wage base, 2% new employer
Paid leave
None
New hire report
Within 20 days

Which state's taxes apply

Work state
Arkansas taxes wages for work done in Arkansas. Withhold Arkansas income tax on the employee's wages.Source: Arkansas DFA, Withholding Tax Employer's Instructions, effective 01/01/2026, revised 4/27/26 (PDF) (opens in a new tab), checked October 5, 2026
Withholding form
Form AR4ECSource: Arkansas DFA, Form AR4EC Employee's Withholding Exemption Certificate (AR4EC2026.pdf, rev. 12/04/2025) (opens in a new tab), checked October 5, 2026
Reciprocity
No state exempts Arkansas residents from its withholding by reciprocity.Source: Arkansas DFA, Withholding Tax Employer's Instructions, effective 01/01/2026, revised 4/27/26 (PDF) (opens in a new tab), checked October 5, 2026
Convenience rules
If your company is in Delaware, New York or Pennsylvania, the employee is assigned to an office there and works there on some days, that state taxes the days worked from home in Arkansas for the employee's convenience.Source: Delaware Division of Revenue, 2025 Form PIT-NON Instructions, Non-Resident Individual Income Tax Return (PDF) (opens in a new tab), checked October 6, 2026; NYS DTF, TSB-M-06(5)I, New York Tax Treatment of Nonresidents and Part-Year Residents: Application of the Convenience of the Employer Test to Telecommuters and Others (May 15, 2006, PDF) (opens in a new tab), checked October 6, 2026; PA Department of Revenue, PA Personal Income Tax Guide, Gross Compensation (opens in a new tab), checked October 6, 2026
Office days in your company's state
That state's day limit, if it has one, decides whether it withholds on those days: see its page, or the helper below.
An employee from another state working in Arkansas
Arkansas sets no day count before a nonresident's wages for work there are withheld.Source: Arkansas DFA, Withholding Tax Employer's Instructions (revised 4/27/26, PDF) (opens in a new tab), checked October 6, 2026

Where to withhold: two states

Pick your company's state, the state where the employee lives and works from home, and the days a year the employee works at your office. The answer reads each state's rules from the data on these pages.

Your company is in
Employee lives and works from home in
Days a year at your office
Assigned to an employer office in New YorkMatters only in the states with a convenience rule (Connecticut, Delaware, New Jersey, New York and Pennsylvania), and only with office days there.

Income tax withholding

  • Arkansas: all wages.

No New York withholding: the employee does no work in New York.

Unemployment

Arkansas: the employee works from home there, so the work is localized in Arkansas.

Simplified: resident credits, dollar tests, local taxes and a move during the year are not worked out here. Each state's rule and its source are on its page.

Unemployment

The employee works from home in Arkansas, so the work is localized in Arkansas: pay Arkansas unemployment tax, not your company state's.

Agency
Arkansas Division of Workforce ServicesSource: Arkansas Division of Workforce Services, UI Employer Services (Tax Rates 2026) (opens in a new tab), checked October 5, 2026
Wage base
$7,000 Fixed by lawSource: Arkansas Division of Workforce Services, UI Employer Services (Tax Rates 2026) (opens in a new tab), checked October 5, 2026
New employer rate
2% 2.0% in 2026 (base rate plus the 0.2% stabilization rate), kept until the employer has three years of benefit experience Surcharges includedSource: Arkansas Division of Workforce Services, UI Employer Services (Tax Rates 2026) (opens in a new tab), checked October 5, 2026

Open the account: Arkansas payroll tax registration

Arkansas has no paid leave program funded through payroll.

Arkansas employer rules

Employment law applies where the employee works, so these follow the employee into Arkansas.

Final pay
Not confirmed
Pay frequency
At least twice a month (semi-monthly).Source: U.S. Department of Labor, Wage and Hour Division, State Payday Requirements (revised January 1, 2023) (opens in a new tab), read from an archived copy dated September 13, 2026 (opens in a new tab)
Pay notice
No Arkansas law requires a general written notice of pay rate or paydays at hire. Employers taking a tip credit must tell the tipped employee in writing the hourly tip credit each time it changes from the previous week (11 CAR 11-201(c)(3)(C)). Employers must post the state minimum wage notice.Source: Arkansas Department of Labor and Licensing, Minimum Wage rules, 11 CAR Part 11 (PDF, printed 07/21/2026) (opens in a new tab), checked October 5, 2026
New hire reporting
Within 20 days of the date of hire.Source: Arkansas Division of Workforce Services, Employer Handbook (PDF) (opens in a new tab), checked October 5, 2026
E-Verify
No E-Verify mandate for private employers. Contractors on state service contracts of $25,000 or more must certify that they do not knowingly employ or contract with illegal immigrants, with a 60-day cure, then contract termination and liability for damages (Ark. Code 19-11-105); no verification method such as E-Verify is required.Source: Ark. Code Ann. 19-11-105, Illegal immigrants: public contracts for services (FindLaw copy of the Arkansas Code, current through 2024-03-28) (opens in a new tab), checked October 5, 2026
Sick leave
No state sick leave law.Source: Arkansas Department of Labor and Licensing, Wage Claims (opens in a new tab), checked October 5, 2026

Not confirmed: no official source settled it on the check date, so none is shown.

When the employee moves

Re-check the work state and the registrations before the next payroll: a move changes which state's withholding, unemployment, paid leave and employer rules apply.

Registering your business in Arkansas, and whether one remote employee creates tax nexus for your company, are separate questions this page does not cover.

More on Arkansas

WORKLIO HCM

Payroll for employees who work from home in another state

Worklio HCM withholds by home and work state, reciprocity included, and handles city and county taxes. We help open state withholding and unemployment accounts when you hire somewhere new, and our registration service can register your employer tax accounts for you. Taxes are calculated, deposited and filed in every state and locality, and when an agency notice arrives, you upload it and our tax team resolves it.

Remote employees in other states

Sources

The agency page or document behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes and for each state's rules.

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