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How Much Does It Cost to Hire an Employee in Arkansas? (2026)

State-specific payroll taxes, workers' comp, and total employer costs in Arkansas.

No signup No tracking Last updated March 2026
Data current as of March 2026 Sources: IRS Publication 15, SSA COLA notices, State Workforce Agencies

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%.

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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.

AR

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.

Top Industries

retail trade (Walmart HQ), food processing, trucking & logistics

Employer Note

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

Salary Total Cost Multiplier
$30,000 $32,785 1.09x
$40,000 $43,655 1.09x
$50,000 $54,525 1.09x
$60,000 $65,395 1.09x
$75,000 $81,700 1.09x
$100,000 $108,875 1.09x
$125,000 $136,050 1.09x
$150,000 $163,225 1.09x

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 2024

Median 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
At the median computer and mathematical salary of $80,450, total employer cost in Arkansas is approximately $87,624 — about 9% above base salary.

States With Similar Hiring Costs

These states have SUTA rates close to Arkansas's 1.9% — good for cost benchmarking.

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Use our interactive calculator with your specific salary, state, and benefits to get an exact number.

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Estimates only. These results are based on publicly available data and standard formulas. Actual costs may vary based on your specific circumstances. This calculator does not constitute financial, tax, or legal advice. Consult a qualified professional for advice on your situation.

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