Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 503 3
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By: Senator Crowell 5
By: Representative Eaton 6
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For An Act To Be Entitled 8
AN ACT TO AMEND THE ARKANSAS INCOME TAX WITHHOLDING 9
ACT OF 1965; TO REDUCE THE NUMBER OF EMPLOYEES AN 10
EMPLOYER MUST HAVE TO BE MANDATED TO FILE AN ANNUAL 11
WITHHOLDING STATEMENT ELECTRONICALLY; TO REQUIRE THE 12
ELECTRONIC FILING OF A WITHHOLDING RETURN FOR CERTAIN 13
EMPLOYERS; AND FOR OTHER PURPOSES. 14
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Subtitle 17
TO REDUCE THE NUMBER OF EMPLOYEES AN 18
EMPLOYER MUST HAVE TO BE MANDATED TO 19
FILE AN ANNUAL INCOME TAX WITHHOLDING 20
STATEMENT ELECTRONICALLY; AND TO REQUIRE 21
THE ELECTRONIC FILING OF A WITHHOLDING 22
RETURN FOR CERTAIN EMPLOYERS. 23
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 25
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SECTION 1. Arkansas Code § 26 -51-908, concerning an employer's 27
withholding return and payment of withheld taxes, is amended to add an 28
additional subsection to read as follows: 29
(i)(1) An employer that is required to file the annual statement of 30
withholding under § 26 -51-909(b) electronically shall file the withholding 31
return required under this section electronically. 32
(2) A company or other business enterprise that provides the 33
service of reporting and remitting withholding tax on the wages paid to 34
Arkansas employees by another employer for a withholding tax reporting period 35
shall file the withholding return required under this section with the 36 SB503
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secretary electronically if the other employer is required to file the annual 1
statement of withholding under § 26 -51-909(b) electronically. 2
(3) The secretary may waive the requirements of this subsection 3
if the secretary determines, on the basis of an application by an employer, 4
that filing the withholding return electronically would cause an undue 5
hardship on the employer. 6
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SECTION 2. Arkansas Code § 26 -51-909(b)(2)(B), concerning the annual 8
income tax withholding statement, is amended to read as follows: 9
(B) An employer who has one hundred twenty-five (125) 10
seventy-five (75) or more employees during the employer's income year shall 11
file the statement electronically. 12
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SECTION 3. EFFECTIVE DATES. 14
(a) Section 1 of this act is effective for tax years beginning on or 15
after January 1, 2026. 16
(b) Section 2 of this act is effective for tax years beginning on or 17
after January 1, 2025. 18
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