The base SUI tax rate assigned to negative-balanced employers is 6.0%. Tax rates for long-term negative-balanced employers Requests should be addressed to: Arkansas Department of Workforce Services, Employer Account Services, PO Box 8007, Little Rock, AR 72203. An experience-rated employer whose previous calendar year's total taxable payroll (i.e., calendar year 2019 for use in the 2021 SUI tax rate calculation) is less than the three- or five-year average annual payroll may elect to use the previous calendar year's payroll as the payroll factor in computations of the experience rate.Įmployers that wish to select this option must make their request in writing no later than the July 31 immediately preceding the particular rate year. The Department uses the lower of the three- or five-year average calendar year taxable payroll in the computation of an employer's experience rate. The Department was scheduled to issue employer 2020 SUI tax rate notices during the first week of December 2019.Experience-rated employers may make a voluntary contribution to reduce their assigned 2020SUI tax rate by March 31, 2020.Įlection to use one year of taxable payroll, rather than the three- or five-year average, in rate computation - election deadline is July 31 In addition, during times when the SUI trust fund balance falls below a specified level, the SUI wage base could increase to $11,000 or $12,000.Ģ017 HB 1405 (Act 734) previously reduced the Arkansas SUI wage base from $12,000 to $10,000, effective Januthrough December 31, 2019. Depending on the SUI benefit rate, the SUI wage base could range from $7,000 to $10,000. The SUI wage base, set by law at $10,0–2019, will now be determined each year by the average seasonally unadjusted SUI benefit rate for the preceding fiscal year (July 1 through June 30). The 2020 new employer rate, including the additional tax, will be 3.1%.Īccording to the Department's announcement, SUI benefit conditions are so favorable that the 2020 SUI taxable wage base will drop to $7,000, down from $10,0.Īs we previously reported, legislation enacted earlier this year ( SB 298/Act 512) changes the way that Arkansas determines the SUI wage base starting with tax years after 2019.(EY Payroll Newsflash Vol. The Arkansas Department of Workforce Services announced that the total 2020 state unemployment insurance (SUI) tax rates will range from 0.3% to 14.2%, including a 0.2% stabilization tax, down 0.1% from 2019. Arkansas 2020 SUI rates and taxable wage base to decrease
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