Employee Cost: Arkansas vs Rhode Island (2026)

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

At a $60,000 salary

Arkansas saves $590/employee/year

$65,452 in Arkansas vs $66,042 in Rhode Island

Arkansas

$65,452

1.09x salary

Rhode Island

$66,042

1.1x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component AR RI 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 $438 -$248
Workers' Compensation $630 $972 -$342
Total Employer Cost $65,452 $66,042 -$590

Tax Rate Comparison

Rate Arkansas Rhode Island
SUTA Rate Range 0.1% – 5.0% 0.1% – 6.7%
SUTA Typical Rate 1.9% 1.5%
SUTA Wage Base $10,000 $29,200
Workers' Comp Rate 1.05% 1.62%
State Income Tax Yes Yes
Disability Insurance Not required 0.0%

What This Means for Employers

For a business hiring at a $60,000 salary, choosing Arkansas over Rhode Island saves $590 per employee per year in employer-side payroll costs alone. For a team of 10, that's $5,900 annually.

The biggest difference comes from workers' compensation rates — Arkansas charges 1.05% vs Rhode Island's 1.62%. 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 RI Total Difference
$30,000 $32,842 $33,261 -$419
$40,000 $43,712 $44,188 -$476
$50,000 $54,582 $55,115 -$533
$60,000 $65,452 $66,042 -$590
$75,000 $81,757 $82,433 -$676
$100,000 $108,932 $109,750 -$818
$125,000 $136,107 $137,068 -$961
$150,000 $163,282 $164,385 -$1,103

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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