Wagevane

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.

Blank uses the new-employer rate.

Blank uses the state benchmark.

Employer share of health insurance etc.

What a Arkansas employer pays

CostRateApplies to
Social Security6.2%Wages up to $184,500
Medicare1.45%All wages
Federal unemployment (FUTA)0.6% netFirst $7,000
Arkansas unemployment (SUTA)2% new employer
0.2%–10.1% experienced
First $7,000
Workers' compensation~$0.53 per $100Varies by job class

Stabilization tax is included in the assigned rate (not itemized in sources)

Total cost at different salaries

SalaryEmployer taxes & insurance% of salaryTotal cost
$35,000$3,0458.7%$38,045
$50,000$4,2728.5%$54,272
$75,000$6,3178.4%$81,317
$100,000$8,3628.4%$108,362
$150,000$12,4528.3%$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

StateSUTA wage baseNew-employer rateCost on $50,000
Arkansas$7,0002%$4,272
Louisiana$7,0001%$4,642
Mississippi$14,0001%$4,477
Missouri$9,0002.38%$4,736
Oklahoma$25,0001.5%$4,907
Tennessee$7,0002.7%$4,456
Texas$9,0002.7%$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.