Cost to hire an employee in Arkansas
On top of a $50,000 salary, a Arkansas employer pays roughly $4,272 in payroll taxes and insurance before benefits, about 8.5% of wages.
Last verified November 2, 2026. Sources: assets.equifax.com, oregon.gov.
What a Arkansas employer pays
| Cost | Rate | Applies to |
|---|---|---|
| Social Security | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | All wages |
| Federal unemployment (FUTA) | 0.6% net | First $7,000 |
| Arkansas unemployment (SUTA) | 2% new employer 0.2%–10.1% experienced | First $7,000 |
| Workers' compensation | ~$0.53 per $100 | Varies by job class |
Stabilization tax is included in the assigned rate (not itemized in sources)
Total cost at different salaries
| Salary | Employer taxes & insurance | % of salary | Total cost |
|---|---|---|---|
| $35,000 | $3,045 | 8.7% | $38,045 |
| $50,000 | $4,272 | 8.5% | $54,272 |
| $75,000 | $6,317 | 8.4% | $81,317 |
| $100,000 | $8,362 | 8.4% | $108,362 |
| $150,000 | $12,452 | 8.3% | $162,452 |
Benefits usually cost more than taxes. The BLS Employer Costs for Employee Compensation survey puts benefits at roughly 30% of total compensation in private industry. Add your health plan cost in the calculator to include it.
Arkansas vs. neighboring states
| State | SUTA wage base | New-employer rate | Cost on $50,000 |
|---|---|---|---|
| Arkansas | $7,000 | 2% | $4,272 |
| Louisiana | $7,000 | 1% | $4,642 |
| Mississippi | $14,000 | 1% | $4,477 |
| Missouri | $9,000 | 2.38% | $4,736 |
| Oklahoma | $25,000 | 1.5% | $4,907 |
| Tennessee | $7,000 | 2.7% | $4,456 |
| Texas | $9,000 | 2.7% | $4,500 |
Frequently asked questions
- How much does it cost to hire an employee in Arkansas?
- On a $50,000 salary, employer payroll taxes and insurance add about $4,272 (8.5%), before benefits, for a total of $54,272.
- What is the Arkansas SUTA rate for new employers?
- New employers generally pay 2% on the first $7,000 of each employee's wages. Experienced employers pay between 0.2% and 10.1%.
- Do Arkansas employers pay FUTA?
- Yes. Employers pay 6.0% on the first $7,000 of wages, reduced to 0.6% with the state unemployment credit.