| 3 | 2 | | *JLL317* 03/18/2025 1:18:20 PM JLL317 |
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| 4 | 3 | | State of Arkansas 1 |
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| 5 | 4 | | 95th General Assembly A Bill 2 |
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| 6 | 5 | | Regular Session, 2025 SENATE BILL 503 3 |
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| 7 | 6 | | 4 |
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| 8 | 7 | | By: Senator Crowell 5 |
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| 9 | 8 | | By: Representative Eaton 6 |
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| 10 | 9 | | 7 |
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| 11 | 10 | | For An Act To Be Entitled 8 |
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| 12 | 11 | | AN ACT TO AMEND THE ARKANSAS INCOME TAX WITHHOLDING 9 |
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| 13 | 12 | | ACT OF 1965; TO REDUCE THE NUMBER OF EMPLOYEES AN 10 |
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| 14 | 13 | | EMPLOYER MUST HAVE TO BE MANDATED TO FILE AN ANNUAL 11 |
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| 15 | 14 | | WITHHOLDING STATEMENT ELECTRONICALLY; TO REQUIRE THE 12 |
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| 16 | 15 | | ELECTRONIC FILING OF A WITHHOLDING RETURN FOR CERTAIN 13 |
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| 17 | 16 | | EMPLOYERS; AND FOR OTHER PURPOSES. 14 |
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| 18 | 17 | | 15 |
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| 19 | 18 | | 16 |
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| 20 | 19 | | Subtitle 17 |
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| 21 | 20 | | TO REDUCE THE NUMBER OF EMPLOYEES AN 18 |
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| 22 | 21 | | EMPLOYER MUST HAVE TO BE MANDATED TO 19 |
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| 23 | 22 | | FILE AN ANNUAL INCOME TAX WITHHOLDING 20 |
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| 24 | 23 | | STATEMENT ELECTRONICALLY; AND TO REQUIRE 21 |
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| 25 | 24 | | THE ELECTRONIC FILING OF A WITHHOLDING 22 |
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| 26 | 25 | | RETURN FOR CERTAIN EMPLOYERS. 23 |
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| 27 | 26 | | 24 |
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| 28 | 27 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 25 |
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| 29 | 28 | | 26 |
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| 30 | 29 | | SECTION 1. Arkansas Code § 26 -51-908, concerning an employer's 27 |
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| 31 | 30 | | withholding return and payment of withheld taxes, is amended to add an 28 |
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| 32 | 31 | | additional subsection to read as follows: 29 |
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| 33 | 32 | | (i)(1) An employer that is required to file the annual statement of 30 |
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| 34 | 33 | | withholding under § 26 -51-909(b) electronically shall file the withholding 31 |
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| 35 | 34 | | return required under this section electronically. 32 |
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| 36 | 35 | | (2) A company or other business enterprise that provides the 33 |
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| 37 | 36 | | service of reporting and remitting withholding tax on the wages paid to 34 |
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| 38 | 37 | | Arkansas employees by another employer for a withholding tax reporting period 35 |
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| 39 | 38 | | shall file the withholding return required under this section with the 36 SB503 |
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| 40 | 39 | | |
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| 41 | 40 | | 2 03/18/2025 1:18:20 PM JLL317 |
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| 42 | 41 | | secretary electronically if the other employer is required to file the annual 1 |
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| 43 | 42 | | statement of withholding under § 26 -51-909(b) electronically. 2 |
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| 44 | 43 | | (3) The secretary may waive the requirements of this subsection 3 |
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| 45 | 44 | | if the secretary determines, on the basis of an application by an employer, 4 |
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| 46 | 45 | | that filing the withholding return electronically would cause an undue 5 |
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| 47 | 46 | | hardship on the employer. 6 |
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| 48 | 47 | | 7 |
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| 49 | 48 | | SECTION 2. Arkansas Code § 26 -51-909(b)(2)(B), concerning the annual 8 |
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| 50 | 49 | | income tax withholding statement, is amended to read as follows: 9 |
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| 51 | 50 | | (B) An employer who has one hundred twenty-five (125) 10 |
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| 52 | 51 | | seventy-five (75) or more employees during the employer's income year shall 11 |
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| 53 | 52 | | file the statement electronically. 12 |
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| 54 | 53 | | 13 |
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| 55 | 54 | | SECTION 3. EFFECTIVE DATES. 14 |
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| 56 | 55 | | (a) Section 1 of this act is effective for tax years beginning on or 15 |
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| 57 | 56 | | after January 1, 2026. 16 |
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| 58 | 57 | | (b) Section 2 of this act is effective for tax years beginning on or 17 |
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| 59 | 58 | | after January 1, 2025. 18 |
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| 60 | 59 | | 19 |
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| 61 | 60 | | 20 |
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