Support of Arkansas Low-Income Tax Rate Reduction

Overview

Updated 09/19/2022

The AR4EC (Employee’s Withholding Exemption Certificate) supports the low-income calculation of the Arkansas Withholding tax. Arkansas does not require employees that don’t qualify for low income to select a filing status. The filing statuses of Single, Married Filing Jointly, and Head of Household are only required when you are a low-income earner.

When the filing status is selected, it will invoke an alternate calculation code of 18 to be passed to the third-party tax engine, Vertex. In addition, the filing statuses have been assigned a numeric value which will ensure the correct withholding table is used in the calculation of the withholding.

Screenshot: State of Arkansas Employee's Withholding Exemption Certificate

Table: Filing Statuses