How do I register as a household employer in Arkansas?

Start with a federal EIN, then register with Arkansas for each account that applies to you. Apply for a federal EIN at IRS.gov. It is free and takes about 15 minutes. Register with Arkansas's unemployment insurance agency once you cross $1,000 in any calendar quarter. Most states want this within 20 days of becoming a covered employer.

What payroll taxes does Arkansas charge for a household employee?

Federal FICA and FUTA, Arkansas SUTA, and anything else below that applies to you. Federal FICA: 7.65% employer share, matched by your nanny. Federal FUTA: 6.0% on the first $7,000, an effective 0.6% after the state SUTA credit. Arkansas SUTA: 0.1% - 14% on a state-specific wage base, with a separate rate for new employers. No state income tax withholding required for household employees, though the wages stay taxable to your nanny on their own Arkansas return.

What are Arkansas's minimum wage and overtime rules for nannies?

At least $7.25 an hour for a nanny in Arkansas. Arkansas's own minimum wage of $11.00/hour only covers households with 4 or more employees, so the federal floor governs for a smaller household. Some cities and counties may set a higher floor, so check your locality before you set a rate. Overtime is 1.5x pay for hours over 40 in a week, under the FLSA. Live-in nannies are exempt from FLSA overtime, but not from minimum wage. Source: Ark. Code § 11-4-203.

Can I require my nanny to use direct deposit in Arkansas?

Yes. Arkansas allows direct deposit for household employees. Federal Regulation E still applies: your nanny must be free to choose their own bank, or you offer another payment method. Get a written, signed authorization before the first deposit, even though Arkansas does not strictly require one.

What records do I need to keep for a Arkansas household employee?

Keep them for at least 4 years after the return reporting the tax was due, or the tax was paid, whichever is later. Timesheets, pay stubs, W-2 copies, payment confirmations and SUTA filings. Arkansas follows the federal baseline, so 4 years covers both. Most household-employer audits open with the IRS or a state agency asking for exactly these records, so keep them with your tax filings. Source: IRS Publication 926.

All State Guides

Arkansas Nanny Tax Guide

Arkansas excludes domestic service wages from the definition of 'wages' entirely, so household employers don't withhold state income tax from their nanny's paycheck. The nanny remains responsible for any income tax they owe at year-end. Employer-side SUI is still required.

Arkansas household employer quick facts

Applies in Arkansas

State unemployment

Not in Arkansas

State income tax withholding
Disability insurance
Paid family leave

Minimum Wage

$7.25/hour

That is the federal floor, because the state's own rate only covers households with 4 or more employees.

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SUTA Rate Range

0.1% - 14%

New employers: 2% (UI + Admin Assessment) on the first $7,000 (2026). Arkansas Division of Workforce Services

Key things to know

No state income tax withholding for domestic workers
Arkansas's $11.00/hour minimum covers households with 4 or more employees. Otherwise the federal $7.25/hour floor applies.
No disability insurance requirement
Employer SUI still required on the first $7,000 in wages

Arkansas Employer Requirements

State Income Tax (Exempt)

The Arkansas DFA Withholding Tax Employer's Instructions (rev. 07/01/2024, p.5) list domestic services performed in a private home as exempt for income tax withholding purposes, so you are not required to withhold Arkansas income tax from your nanny's pay and NannyKeeper does not. Your nanny remains responsible for any Arkansas income tax they owe when they file their return.

State Unemployment Insurance

Employers pay SUI tax on the first $7,000 of wages. New employer rate is 2.0%, with rates ranging from 0.1% to 14.0% based on experience.

Workers' Compensation

Arkansas doesn't require workers' compensation for household employers, since domestic workers are excluded from the state's coverage mandate. It's still worth considering: it protects your employee if they're injured at work, and protects you from potential liability.

Arkansas household employer questions

What will it cost?

Wondering what you'll actually owe as a Arkansas employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of June 2026Sources: Arkansas tax agency, IRS Publication 926

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Arkansas Nanny Tax Guide

Arkansas household employer quick facts

Arkansas Employer Requirements

State Income Tax (Exempt)

State Unemployment Insurance

Workers' Compensation

Arkansas household employer questions

What will it cost?

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