How Much Does It Cost to Hire an Employee in Arkansas? (2026)
State-specific payroll taxes, workers' comp, and total employer costs in Arkansas.
Hiring a $60,000/year employee in Arkansas costs employers approximately $65,395 total in 2026, including $5,395 in mandatory payroll taxes and workers' comp. That's a 1.09x multiplier on base salary.
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Total Cost at $60K Salary
$65,395
Cost multiplier: 1.09x
SUTA Rate (Mid)
1.9%
Wage base: $7,000
Workers' Comp Rate
1.05%
Has state income tax
Key Insight
For a $60,000 salary in Arkansas, employers pay $5,395 in mandatory taxes — a 1.09x cost multiplier. Arkansas's SUTA rate (1.9%) is above the national average of 1.70%.
Model your specific hire
Use our interactive calculator pre-loaded with Arkansas's tax rates. Adjust salary, benefits, and overhead to get your true cost.
Arkansas Employer Tax Details
State-specific payroll obligations for employers
| SUTA Rate Range | 0.1% – 5.0% |
| SUTA New Employer Rate (typical) | 1.9% — No change from 2025 |
| SUTA Wage Base | $7,000 |
| Workers' Compensation (avg) | 1.05% of payroll ↓ 0.03% from 2025 |
| State Income Tax | Yes |
2026 Rate Changes in Arkansas
- — SUTA rate unchanged at 1.9% from 2025 to 2026.
- ↓ Workers' comp rate decreased from 1.08% (2025) to 1.05% (2026) — saving approximately $18 per $60K employee per year.
Rate changes reflect Arkansas #{TaxConstants::TAX_YEAR} announcements vs. 2025 baseline. Workers' comp rates are industry averages and vary by classification code.
Example Employer Costs in Arkansas
Mandatory employer taxes only (no benefits or overhead)
| Component | $40,000 Salary | $60,000 Salary | $80,000 Salary |
|---|---|---|---|
| Social Security (6.2%) | $2,480 | $3,720 | $4,960 |
| Medicare (1.45%) | $580 | $870 | $1,160 |
| FUTA | $42 | $42 | $42 |
| SUTA (AR) | $133 | $133 | $133 |
| Workers' Comp | $420 | $630 | $840 |
| Total Employer Taxes | $3,655 | $5,395 | $7,135 |
| Total Cost (salary + taxes) | $43,655 (1.09x) | $65,395 (1.09x) | $87,135 (1.09x) |
These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.
Tax rates sourced from IRS Publication 15, SSA COLA notices, and Arkansas Department of Labor. Social Security tax is 6.2% of wages up to $184,500. Medicare is 1.45% with no wage cap. FUTA is 0.6% on the first $7,000 after credit.
How Arkansas Compares
Arkansas's typical SUTA rate of 1.9% is above the national average of ~1.70%. With a relatively low wage base of $7,000, the maximum SUTA cost per employee is capped early.
Workers' compensation at 1.05% of payroll is below the national average of ~1.20%.
Arkansas Employer Environment
Below-average employer costs- State income tax applies — factor into total compensation packages
- SUTA rate 1.9% (wage base $7,000) — in line with national average
- Workers' comp rate 1.05% — near national average, varies by industry classification
Arkansas's overall employer tax burden is broadly in line with the national average. Review SUTA and workers' comp rates relative to your industry classification for a more precise picture.
Arkansas Employment Profile
Arkansas maintains low employer taxes with a $7,000 SUTA wage base, among the lowest in the country, reflecting a business-friendly posture toward small manufacturers.
retail trade (Walmart HQ), food processing, trucking & logistics
Walmart's headquarters in Bentonville creates a large vendor ecosystem; many businesses hire to service the retail supply chain.
Cost at Different Salary Levels in Arkansas
Total employer cost including all mandatory payroll taxes
Compare Arkansas With
Employee Costs in Other States
Hiring Cost by Industry in Arkansas
Workers' comp rates vary significantly by industry — restaurant and construction workers cost far more to insure than office staff.
Average Wages by Occupation in Arkansas
BLS OEWS 2024Median annual wages from the Bureau of Labor Statistics — use these as your baseline salary when estimating total hiring cost.
| Occupation Group | Median Annual | Employed |
|---|---|---|
| Computer and Mathematical | $80,450 | 26,340 |
| Management | $80,170 | 89,540 |
| Architecture and Engineering | $77,150 | 12,850 |
| Healthcare Practitioners and Technical | $67,930 | 87,860 |
| Business and Financial Operations | $64,020 | 67,500 |
| Legal | $63,990 | 6,580 |
| Life, Physical, and Social Science | $62,120 | 8,000 |
| Educational Instruction and Library | $50,200 | 73,460 |
States With Similar Hiring Costs
These states have SUTA rates close to Arkansas's 1.9% — good for cost benchmarking.
Arkansas Business Resources
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Specialized Calculators for Arkansas Employers
Running a specific type of business? These tools go deeper on costs by industry and location.
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Franchise Budget Calculator
franchisebudget.com — franchise startup cost estimator
Simplify Payroll in Arkansas
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