Employee Cost: Arkansas vs Connecticut (2026)

Side-by-side comparison of employer costs, payroll taxes, SUTA rates, and workers' comp.

At a $60,000 salary

Arkansas saves $1,195/employee/year

$65,452 in Arkansas vs $66,647 in Connecticut

Arkansas

$65,452

1.09x salary

Connecticut

$66,647

1.11x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component AR CT Diff
Base Salary $60,000 $60,000
Social Security (6.2%) $3,720 $3,720
Medicare (1.45%) $870 $870
FUTA (0.6%) $42 $42
SUTA (State Unemployment) $190 $725 -$535
Workers' Compensation $630 $990 -$360
State-Mandated Insurance $0 $300 -$300
Total Employer Cost $65,452 $66,647 -$1,195

Tax Rate Comparison

Rate Arkansas Connecticut
SUTA Rate Range 0.1% – 5.0% 1.5% – 6.9%
SUTA Typical Rate 1.9% 2.9%
SUTA Wage Base $10,000 $25,000
Workers' Comp Rate 1.05% 1.65%
State Income Tax Yes Yes
Paid Family Leave Not required 0.5%

What This Means for Employers

For a business hiring at a $60,000 salary, choosing Arkansas over Connecticut saves $1,195 per employee per year in employer-side payroll costs alone. For a team of 10, that's $11,950 annually.

The biggest difference comes from SUTA (state unemployment tax) — Arkansas charges 1.9% vs Connecticut's 2.9%. Note that federal taxes (Social Security, Medicare, FUTA) are identical in both states.

These numbers reflect employer-side costs only and don't include benefits, overhead, or the employee's own tax burden. Use the interactive Employee Cost Calculator to model different salary levels and benefits packages.

Cost Comparison at Different Salary Levels

How the gap changes from $30K to $150K

Salary AR Total CT Total Difference
$30,000 $32,842 $33,707 -$865
$40,000 $43,712 $44,687 -$975
$50,000 $54,582 $55,667 -$1,085
$60,000 $65,452 $66,647 -$1,195
$75,000 $81,757 $83,117 -$1,360
$100,000 $108,932 $110,567 -$1,635
$125,000 $136,107 $138,017 -$1,910
$150,000 $163,282 $165,467 -$2,185

Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of AR.

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