Arkansas has reduced its W-2 electronic filing threshold from 125 to 75 employees, effective for tax year 2025 returns filed in 2026. Under Senate Bill 503, signed by Governor Sanders on April 14, employers with 75 or more employees will be required to file W-2 forms electronically.
Additionally, beginning with tax year 2026, there will be an electronic filing requirement for withholding returns for employers who are required to file W-2s electronically. This will also extend to companies that provide withholding tax reporting and remittance services for these employers. Employers experiencing undue hardship may submit formal applications for exemption; however, approval of such waivers remains at the sole discretion of the Secretary of the Arkansas Department of Finance and Administration.
To review Senate Bill 503 in greater detail, click here.
