Arkansas recently released its 2021 Withholding Tax Employer’s Instructions, the booklet of information for Employers covering the general range of topics for employers withholding from wages and non-wage compensation. Most of the changes for tax year 2021 are formatting and grammatical in nature, but there are some changes that may affect employers. These changes are detailed below:
• Filing of paper forms W-2 and ARW3, forms 1099 and 1096, and electronic filing of forms W-2 and 1099 have all been moved from February 28, 2022 to January 31, 2022
• The deduction from supplemental wages for Arkansas has been reduced from 6.9% to 5.9% for the 2021 tax year
To view the complete instruction booklet, click here.