“An Equal Opportunity Employer”
Dear Arkansas Employer:
It is a privilege for the Division of Workforce Services to provide this Employer Handbook. It
includes a brief explanation of the Division of Workforce Services Law, Regulations and
procedures as they relate to the administration of Arkansas’ Unemployment Insurance program.
This Handbook is intended to provide clear, concise information to help employers protect their
rights, fulfill their responsibilities and make the best possible use of services offered by the
Division.
References to the Arkansas Annotated Code are provided and easily accessed through the Lexis
Nexis website at no cost.
Arkansas employers are solely responsible for the funding of the UI program. The state
unemployment insurance tax is used exclusively for the payment of benefits to eligible
unemployed workers, while the annual federal unemployment or FUTA tax is used to fund the
administrative costs of the program.
Tax dollars can be saved by becoming familiar with the UI program. For example, FUTA taxes can
be reduced by paying state UI taxes on time. In addition, benefit payment accuracy can be
improved by responding to requests for information in a timely and precise manner.
While the Division encourages all employers to utilize this handbook it should be noted that it is
being provided as general information and should not be relied upon as a substitute for legal
advice.
2
Employer Handbook
Contents
DIRECTORY ......................................................................................................................................... 5
Administrative Directory ............................................................................................................... 5
Other Helpful Information Sources ............................................................................................... 5
Local Office Directory .................................................................................................................... 6
CONTRIBUTIONS ................................................................................................................................ 7
Employee ....................................................................................................................................... 7
Exempt Employment ..................................................................................................................... 8
Creating an Account ...................................................................................................................... 8
Successor Employer ....................................................................................................................... 9
Acquisition of an Entire Business .............................................................................................. 9
Acquisition of Part of a Business ............................................................................................... 9
SUTA Dumping ............................................................................................................................. 10
Joint Accounts ............................................................................................................................. 10
Multiple Accounts ....................................................................................................................... 10
Employee Leasing ........................................................................................................................ 11
Wages to Be Reported ................................................................................................................. 12
Payments Which Should Not Be Reported: ............................................................................ 12
Employees in More than One State ............................................................................................ 13
Unemployment Tax Calculation .................................................................................................. 13
Total Tax Rate .......................................................................................................................... 14
Advanced Interest Tax Rate..................................................................................................... 14
Extended Benefit Tax Rate ...................................................................................................... 14
Stabilization Tax Rate .............................................................................................................. 14
New Employer Tax Rate .......................................................................................................... 15
Base Tax Rate........................................................................................................................... 15
Reserve Ratio ........................................................................................................................... 15
Net Reserve ............................................................................................................................. 15
Contributions Credited ............................................................................................................ 16
Total Benefits Paid ................................................................................................................... 16
Payroll Factor ........................................................................................................................... 16
Deficit Rated Accounts ............................................................................................................ 16
Experience Rating Notices ....................................................................................................... 17
Voluntary Payment Option ...................................................................................................... 17
Federal Unemployment Tax Credit ............................................................................................. 17
Terminating Accounts ................................................................................................................. 18
Reimbursable Employers ............................................................................................................. 18
3
Employer Handbook
Factors That Should Be Considered Before Becoming Reimbursable .................................... 18
Reimbursable Payment Option ............................................................................................... 19
End of Year Balances ............................................................................................................... 19
RESPONSIBILITIES AS AN EMPLOYER ........................................................................................... 20
Filing Quarterly Wage Reports ................................................................................................ 20
Electronic Filing Requirement ..................................................................................................... 20
PENALTIES .................................................................................................................................... 20
Tax Rated Account Penalties ................................................................................................... 20
Reimbursable Penalties ........................................................................................................... 20
PAYING TAXES.............................................................................................................................. 21
Keeping Records .......................................................................................................................... 21
Reporting Changes to the Employer Account ............................................................................. 22
Providing Information to Employees .......................................................................................... 22
Providing Notice of Plant Closings or Mass Layoffs .................................................................... 23
Reporting Newly Hired and Returning Employees ...................................................................... 23
BENEFIT PAYMENTS ......................................................................................................................... 25
How Are Unemployment Benefit Amounts Determined? .......................................................... 25
1. Calculating the Base Period .......................................................................................... 25
2. Monetary Eligibility ....................................................................................................... 25
3. Calculating the Weekly and Maximum Benefit Amounts ............................................. 26
How Do Employers Know When a Claim has been Filed?........................................................... 26
When Are Benefit Payments Made? ........................................................................................... 27
The Reason for Separation from Last Employment ................................................................ 27
Continuing Eligibility Requirements ........................................................................................ 32
Multiple Base Period Employers and Benefit Charging .............................................................. 32
Quarterly Notice of Benefit Charges ........................................................................................... 32
Reimbursable Employer Billings .................................................................................................. 33
Detection and Prevention of Improper Payments ...................................................................... 33
Interstate and Combined Wages Claims ..................................................................................... 33
Federal-State Extended Benefits Program .................................................................................. 34
Shared Work — An Alternative to Total Unemployment ........................................................... 34
Trade Adjustment Assistance and Trade Readjustment Allowance ........................................... 34
Disaster Unemployment Assistance ............................................................................................ 35
How Can I Keep My Unemployment Costs Down? ..................................................................... 35
Stabilize Employment .............................................................................................................. 35
Minimize Charges .................................................................................................................... 35
4
Employer Handbook
Maintain a Good Tax Rate ....................................................................................................... 35
Report Fraud or Abuse ................................................................................................................ 36
APPEALS ........................................................................................................................................... 37
Notice of Claimant Eligibility ....................................................................................................... 37
5
Employer Handbook
DIRECTORY
Administrative Offices
The Division of Workforce Services Administrative Offices are located at #2 Capitol Mall, Little
Rock, Arkansas 72201.
Administrative Directory
(501)
682-2121
(501)
682-3106
(501)
682-3150
(501)
682-3798
(501)
682-3200
(501)
682-3253
(501)
682-3100
(501)
682-3798
Other Helpful Information Sources
(501)
682-1063
(501)
683-4300
(501)
628-3244
(General Inquiries Only--Questions regarding benefit payment issues involving specific
claimants should be addressed to [email protected] and your email
will be responded to as quickly as possible.
6
Employer Handbook
Local Office Directory
The Division of Workforce Services has local offices throughout the State to carry out
Unemployment and Employment Service functions.
Local Office
Physical Location
Zip Code
Telephone
Conway
1500 North Museum Rd, #111
72032
501-730-9897
El Dorado
708 West Faulkner St
71730
870-862-6456
Fayetteville
2153 E. Joyce Blvd, #201
72701
479-521-5730
Forrest City
EACC Campus, 1700 New Castle Rd
72235
870-633-2900
Fort Smith
616 Garrison Ave, Rm 101
72901
479-783-0231
Harrison
818 Highway 62-65
72601
PO Box 280 - 72602-0280
870-741-8236
Hope
205 Smith Road, Suite A
71801
870-777-3421
Hot Springs
201 Market St
70901
501-525-3450
Jonesboro
2311 East Nettleton Ave
72401
870-935-5594
Little Rock
5401 S University
72209
501-682-8030
Monticello
477 South Main St
71655
870-367-2476
Paragould
Black River Tech- 1 Black River Dr
72450
870-236-8512
Pine Bluff
1001 South Tennessee St
71601
870-534-1920
Russellville
104 South Rochester Ave
72801
479-968-2784
Searcy
501 West Arch Ave
72143
501-268-8601
West Memphis
ASU Mid-South-2003 W Broadway
72301
870-400-2269
7
Employer Handbook
CONTRIBUTIONS
Arkansas employers, except for certain IRS
approved nonprofit employers, and state and
local government entities, pay both Federal
and State unemployment insurance taxes to
finance Arkansas’ Unemployment Insurance
program. An employer can be an individual, a
partnership, a corporation, or any other
entity for which a worker performs services.
If a business meets one of the following
conditions, it is considered an “employer”
and required to pay unemployment taxes on
its employees' wages throughout the
calendar year.
1. Employ one or more workers for some portion of ten or more days during a calendar year.
2. Acquire the business or part of the business of an employer subject to unemployment
taxes.
3. Pay $1,000 or more cash wages in a calendar quarter to individuals employed in domestic
service.
4. Pay $20,000 or more cash wages in any calendar quarter to individuals employed in
agricultural labor or employ at least ten workers for some part of a day in each of twenty
different weeks in a calendar year.
5. Voluntarily elect to provide unemployment coverage to workers even though it is not
required. Such an election must include all employees in all of the employer’s places of
business and is binding for a minimum of two calendar years.
Reference: Arkansas Code § 11-10-208, §11-10-209 and, §11-10-210
Employee
The relationship between the employer and its workers determines if the workers are
employees covered by UI tax law. An employment relationship exists when a worker performs
services that are subject to the employer’s control, or right to control, whether or not that
control is exercised.
Generally, an employment relationship exists when the services performed are a regular part of
business. It is presumed that, in order to protect business interests, the manner in which workers
perform services is controlled.
The services may be performed on a full-time, part-time, temporary, seasonal, or probationary
basis. They may be performed on or off the premises or in employees own homes. Corporate
officers, including officers of closely-held corporations, are employees of the corporation
whether or not they receive wages.
In contrast, “independent contractors” are customarily engaged in an independent trade,
occupation, profession, or business. They usually advertise their services, are in a position to
realize a profit or suffer a loss as a result of their services, and usually have a significant
8
Employer Handbook
investment in the business.
Exempt Employment
Employees are covered by UI tax law, unless their services are specifically excluded. If a service
is excluded, it is not counted in determining the liability for taxes. Payments for those services
should not be included on the quarterly wage reports. Some of the more common types of
payments not reported are:
1. Service performed by an individual in the employ of his /her son, daughter, or spouse.
2. Service performed by a child under twenty-one years of age in the employ of his /her father
or mother.
3. Service performed as an insurance or real estate agent or solicitor if remuneration is solely
from commission.
4. Service performed in the delivery or distribution of newspapers or shopping news to
customers.
5. Service performed as a student nurse in the employ of a hospital or a nurses’ training
school; or interns in the employ of a hospital.
6. Service performed by students in regular attendance at the educational institution that
employs them.
7. Service performed in the employ of a church or convention or association of churches; or a
church organization operated exclusively for religious purposes.
8. Service performed by an individual for any political caucus, committee, or headquarters of
other groups of like nature not established on a permanent basis.
9. Service performed by an inmate of a penal institution.
10. Service performed by a qualified home and community based service provider.
Questions concerning coverage or exemption may be directed in writing to:
Division of Workforce Services
Employer Account Services
PO Box 8007
Little Rock, AR 72203
Or by calling (501) 682-3798.
All questions submitted in writing should include complete information regarding the nature of
the employment, along with the name, address, and telephone of the individual that can best
provide additional information, if such is needed.
Reference: Arkansas Code §11-10-210(a)(4)(A)-(F) and §11-10-210(f)(1)-(21)
Creating an Account
As soon as an entity meets the definition of employer, the Tax21 website can be utilized to
create an account for reporting purposes. The Employer Accounts Services section or any of
the District Field Tax Representatives shown in the Directory of this handbook is also available
to assist in the creating an account or answering any questions on the process. A “Report to
Determine Liability Under the Division of Workforce Services Law” (Form DWS-ARK-201) must
be completed and submitted no later than the last day of the second month in which the
9
Employer Handbook
employer/employing unit meets the definition. The information provided will be used to
determine the liability for unemployment taxes.
If an employer disagrees with a determination of liability it must notify the Division (Employer
Accounts Services) within twenty days of the mailing date of the notification of liability or an
account will be established and number assigned. The account number will consist of nine
digits and it is imperative that the number is included on all reports, remittances and other
correspondence to ensure reference to the correct account.
If there is a disagreement with the liability determination and the employer decides to appeal,
quarterly reports must be filed and all contributions, penalty, and interest due must be paid
during the appeal process.
Successor Employer
When all or part of a business covered by UI tax law is acquired, whether the acquisition is the
result of reorganization, purchase, inheritance, receivership or for any other cause, the
acquiring entity is considered a “successor” employer for unemployment tax purposes.
Successor employers are immediately liable for unemployment tax regardless of the amount of
wages paid or workers employed.
Acquisition of an Entire Business
When an entire business is acquired and its operation is continued, the tax rate and all
experience transfers to the successor employer. The experience includes the record of
contributions paid into and benefits paid out of the trust fund. Therefore, any unemployment
benefits awarded based on wages paid by the former owner will be charged to the successor
employer’s account. Additionally, the successor employer will be liable for taxes left unpaid by
the predecessor employer.
As a successor employer, take into account wages paid by the former owner in determining the
amount of wages that are taxable during the year the business is acquired. For example, if the
former owner has paid wages in excess of the taxable wage base to a worker whose
employment continues with the successor employer, taxes are not due on any additional wages
paid to this worker in the year that the business is acquired.
Reference: Arkansas Code §11-10-710
Acquisition of Part of a Business
If only a segregable and identifiable portion of a business is acquired and continues to operate,
the successor employer is not automatically assigned the tax rate and experience rating of the
When acquiring a business, consider whether any unemployment taxes remain
unpaid by the seller.
Take advantage of the taxable wages reported by the former owner.
10
Employer Handbook
former owner.
If a successor employer wants to obtain the partial experience of the predecessor employer a
“Petition for Partial Transfer of Experience” (Form DWS-ARK-201P) must be completed and
submitted no later than thirty days after the effective date of the acquisition.
Reference: Arkansas Code §11-10-710(b)(1)
SUTA Dumping
SUTA Dumping is the deliberate avoidance of UI taxes by manipulation of UI tax rates.
Businesses manipulate UI tax rates by purchasing or forming a new entity with a lower rate and
then moving employees and wage reporting to that entity.
UI tax law provides for criminal and civil penalties for employers and financial advisors that
engage in SUTA Dumping. Violations or attempted violations by employers can result in a 2%
rate increase in the year the violation occurs and in the three succeeding years, and a 10%
penalty on total UI taxes due. Advising other persons or entities to engage in SUTA Dumping
can result in penalties up to $5,000.00 plus 10% of tax due. In addition, any person who violates
or advises others to violate the SUTA Dumping provisions shall be guilty of a Class C felony.
Reference: Arkansas Code §11-10-723
For additional information regarding SUTA Dumping call (501) 537-6364.
Joint Accounts
Employers can make application to participate in a joint account with one or more other
employers. To make such an application, a completed “Petition for Joint Employer Tax
Account” (Form DWS-ARK-201J) must be submitted on or before December 1, prior to the year
the application is to become effective. If approved, the individual accounts are merged in a
joint account for experience rating purposes. Each employer assumes joint and several liability
for the debts of the others in the group. All joint accounts are maintained on a calendar year
basis and must be maintained for a minimum of two calendar years unless terminated sooner
by action of the Division.
Withdrawal from a joint account by any participating employer may be approved, if the request
for withdrawal is made in writing to the Division on or before September 30 of the year prior to
the year for which the withdrawal is to be effective. A “Request for Withdrawal from Joint
Account” (Form DWS-ARK-236J) must be completed and submitted to process the request. The
withdrawing employer will be treated as a new liable employer, and as such will not get the
benefit of the taxable wage base already paid on employees in former quarters.
Reference: Arkansas Code §11-10-208(3)-(12)
For additional information on joint accounts please contact the Employer Accounts Division at
(501)-682-3798.
Multiple Accounts
If an employer has multiple locations that require separation for its internal accounting
11
Employer Handbook
purposes, more than one account may be assigned, but the experience is combined in to one
rate.
Multiple accounts must file utilizing separate assigned account numbers. Once the account
numbers have been issued, we strongly urge all employers to use the Tax21 system to file all
quarterly reports. If paper reports are necessary separate “Employer’s Quarterly Wage and
Contribution Report” (Form DWS-ARK-209B, DWS-ARK-209BR-Reimbursable Employers Only or
DWS-ARK-209BS-Seasonal Industries Only) for each place of business.
Employee Leasing
The term “lessor employing unit” is defined as an independently established business entity
which engages in the business of providing leased employees to any other employer, individual,
organization, partnership, corporation, or other legal entity, referred to herein as a “client.”
Any legal entity determined to be engaged in the business of “outsourcing” shall be considered
a lessor employing unit. Additionally, the licensing requirements of the Arkansas PEO
Recognition and Licensing Act (Arkansas Code Annotated 23-92-401 et seq.), as administered
by the Arkansas Insurance Division, must be satisfied. Lessor employing units must also obtain
an employee leasing firm license from the Arkansas Department of Insurance, post a surety
bond in the amount required by them, and meet the other requirements of that licensing
department. (The surety bond required for licensing is in addition to the bond requirements of
the Division of Workforce Services.)
If, after three years all contributions have been paid in a timely manner, the bond held for a
bonded lessor employer may, upon request, be reduced from $100,000 to $35,000. Bonded
lessor employers must report wages for new clients on separate client accounts for three years;
after which time, the bonded lessor employer shall report all wages under its own account
number and federal ID number, using the assigned rate. Non-bonded lessor employers must
always report wages under its clients accounts.
In lieu of a surety bond, the lessor employing unit may deposit, in a depository designated by
the Director, securities with marketable value equivalent to the amount required for the surety
bond. The securities so deposited shall include authorization to the Director to sell any such
securities in an amount sufficient to pay any contributions which the lessor employing unit fails
to promptly pay when due.
Reference Arkansas Code Annotated, Section 11-10-717 (e) (2) (B).
The clients of lessor employing units must continue to report wages paid to their employees
and pay the contributions due on them until the lessor employing unit has complied with the
security bond requirements as stated above. In addition, the employee leasing company is
prohibited from moving the wages of a client from one lessor employing unit to another lessor
employing unit account with a lower rate.
A lessor employing unit, that has not posted a Surety Bond or provided other acceptable
collateral, must submit separate quarterly contribution and wage reports for each of its client
entities. When an employer enters into a contract with a lessor employing unit, which has not
posted a $100,000 surety bond, a new account number will be issued. If the client has an
existing account with DWS, it will be terminated, a new account number issued as a successor
account, and the experience rating transferred to the successor account. A new employer will
have a new DWS number issued. The lessor information on the account will be the lessor’s
12
Employer Handbook
Federal Identification Number, address, telephone number and contact person. Individual
client information will compose the remainder of the items.
If a client chooses to retain a portion of the employees, a multiple account will be generated
with the parent account unit belonging to the client and the secondary unit having joint and
several liabilities with the lessor employer.
For lessor accounts to be accurately maintained, a monthly list of clients added and deleted will
be sent to the Arkansas Insurance Department, with a copy to the Division of Workforce
Services. A Power of Attorney signed by the client’s representative should be submitted for
each lessor client.
The provisions, as outlined above are not applicable to private employment agencies that
provide their employees to employers on a temporary basis, provided that the private
employment agencies are liable as employers for the payment of contribution on wages paid to
temporary workers it employs. An example is a Temporary Help Firm, which is defined as a firm
that hires its own employees and assigns them to clients to support or supplement the client’s
workforce in work situations such as employees’ absences, temporary skill shortages, seasonal
workloads and special assignments/ projects.
Reference: Arkansas Code §11-10-717(e)1-5
Wages to Be Reported
“Wages” means all remuneration paid for personal services including, but not limited to,
salaries, commissions, bonuses, fees, fringe benefits, sick pay made directly to the employee or
his dependents, deferred compensation, tips received while performing services which
constitute employment and were reported by employees, and the cash value of payments in
any medium other than cash. Employer contributions (to the extent elected by the employee)
to 401 (k) plans are also wages.
Payments Which Should Not Be Reported:
1. Payments made to a plan or system which makes provision for employees and/or their
dependents for insurance or annuities involving retirement, sickness, or accident disability,
medical and hospitalization in connection with sickness or accident disability, worker’s
compensation, or death.
2. Payments made by an employer under a cafeteria plan, within the meaning of 26 U.S.C.A.
Section 125, if such payment would not be treated as wages without regard to such plan.
3. Fees paid to corporate directors.
4. A domestic employee’s share of the Federal Insurance Contribution Act (FICA).
Reference: Arkansas Code §11-10-215
Be aware of excluded payments for which taxes are not due.
13
Employer Handbook
Employees in More than One State
If employees are working in Arkansas and one or more other states, the following guidelines
will help correctly report their wages and pay unemployment taxes:
1. If an employee works only in Arkansas, report the wages and pay taxes to Arkansas,
whether or not the employer is located in Arkansas.
2. If an employee works only in another state, report the wages and pay taxes to that other
state, even if the employer is located in Arkansas.
3. If an employee works primarily in Arkansas and only occasionally in another state, report
the wages and pay taxes to Arkansas whether or not the employer is located in Arkansas.
4. If an employee works equally in two or more states, report the wages and pay taxes to the
state that contains the employer’s base of operations, or the state from which the services
are directed and controlled (usually the State in which the employer is located).
Localization of Work Provisions
When an employee permanently moves to Arkansas from another state, but remains employed
by the same employer, a credit against Arkansas’ $7,000 taxable wage base may be taken for UI
taxes paid in the former state of residence during the same calendar year.
For example:
If in the second quarter of the calendar year an employee moves to Arkansas from Missouri.
(Missouri’s taxable wage base is $13,000) In Missouri in the first quarter the employee was paid
$6,000 and in the second quarter in Arkansas the employee was paid $10,000. The second
quarter taxes will be as follows:
Arkansas taxable wage base: $ 7,000.00
1
st
quarter wages paid toward Missouri taxable base $ 6,000.00
Taxable wage base not yet met $1,000.00
2
nd
quarter wages for Arkansas $10,000.00
Taxable wages base not yet met $1,000.00
Excess Wages $9,000.00
Taxable Wages for Arkansas $1,000.00
Unemployment Tax Calculation
(The following information on calculating tax rates does not apply to certain nonprofit and
governmental employers that have chosen the reimbursement payment option—please see the
section on reimbursable employers for more information on this option).
Arkansas’ base UI tax rates range from 0.1% to 5.0% with deficit employer rates ranging from
6.0% to 10.0%. In addition to the base rates and deficit employer rates, additional taxes may
be in effect. The additional taxes are: Advanced Interest tax 0.2%, Extended Benefit tax 0.1%
and Administrative Assessment (formerly Stabilization 0.1% to 0.8%) 0.125% for 2023 third
quarter though 2024 second quarter; will reduce to 0.1% for 2024 third quarter forward.
Together the base/deficit rate and the additional taxes constitute the total tax rate. The
base/deficit rates and the additional taxes (when in effect) are due on the first $7,000 (taxable
-
-
14
Employer Handbook
wage base) of covered wages of each employee during the calendar year. The total tax amount
is calculated by multiplying the quarterly taxable wages by the total tax rate.
Total Tax Rate
To determine the amount of the tax that each individual employer pays; the advanced interest,
extended benefit, stabilization, and base rate are added.
For example:
Advanced Interest: 0.200%
Extended Benefit: 0.100%
Administrative Assessment (formerly stabilization): 0.125%
Example Employer’s Base Tax Rate: 1.900%
Total Tax Rate: 2.325%
Advanced Interest Tax Rate
The 0.20% Advanced Interest tax is imposed the quarter following the quarter in which an
outstanding Title XII advance begins to accrue interest.
Reference: Arkansas Code §11-10-708
Extended Benefit Tax Rate
The extended benefit tax is a 0.1% tax on taxable payrolls to finance the payment of extended
benefits. Whether the tax triggers on depends upon the trust fund balance.
Reference: Arkansas Code §11-10-540
Stabilization Tax Rate
Note: Stabilization tax was removed and replaces with Administrative Assessment effected July
1
st
, 2023.
The stabilization tax is a solvency tax which, depending on the relationship of the trust fund
balance to total payrolls, may range from – 0.1% to 0.8% of taxable wages. This tax is necessary
since individual employer reserves cannot be charged for all benefits paid from the trust fund.
Examples of these uncompensated benefit payments include:
1. Benefits paid to workers whose employer has gone out of business.
2. Benefits paid to workers whose employer’s tax rate is not sufficient to cover their benefit
charges.
3. Benefit payments that are non-charged.
Administrative Assessment
The administrative assessment is used for personal services necessary to the proper
administration of the Division of Workforce Service law.
Examples include:
1. Online filing systems for benefits and contributions
2. Fraud detection systems
3. IT enhancements
15
Employer Handbook
Reference: Arkansas Code §11-10-706
New Employer Tax Rate
New employers are assigned the new employer rate. The new employer rate is 1.9% plus any
additional taxes in effect effective January 1
st
, 2024. In prior years the new employer rate was
2.9% plus and additional taxes in effect. New employers keep the new employer rate until such
time as they have had three years of chargeable benefit experience.
Base Tax Rate
After an employer has been subject to three or more years of benefit experience the rate will
be assigned by the following chart based on the Reserve Ratio.
Contribution Base Rate
Reserve Ratio
0.1%
9.95% or more
0.3%
9.35% but less than 9.95%
0.5%
8.85% but less than 9.35%
0.8%
8.65% but less than 8.85%
1.2%
8.35% but less than 8.65%
1.6%
7.95% but less than 8.35%
2.0%
7.35% but less than 7.95%
2.4%
6.75% but less than 7.35%
2.8%
5.45% but less than 6.75%
3.2%
2.45% but less than 5.45%
4.0%
1.35% but less than 2.45%
5.0%
Less than 1.35% with a positive reserve balance
6.0%
Less than 0.00%
8.0%*
Less than 0.00% for four consecutive years
10.0%*
Less than 0.00% for eight consecutive years
12.0%* NA as of 1/1/2024
Less than 0.00% for six consecutive years
14.0%* NA as of 1/1/2024
Less than 0.00% for eight consecutive years
1.9%** as of 1/1/2024, previously 2.9%
New Employer Rate
Reference: Arkansas Code §11-10-705
Reserve Ratio
The reserve ratio is calculated by dividing the net reserve by the payroll factor.
Reserve Ratio = Net Reserve
Payroll Factor
Net Reserve
The net reserve is calculated by subtracting the total unemployment insurance benefits paid
from the total contributions credited.
Net Reserve = Contributions Credited – Total Benefits Paid
* See Deficit Account Rates section for additional information
** See New Employer Tax Rate section for additional information
16
Employer Handbook
Contributions Credited
Contributions credited is the amount of taxes paid on the account, excluding any advanced
interest, extended benefit, or stabilization taxes paid.
The rate calculation period is July 1 through June 30. However, contributions paid on or before
July 31 on wages paid on or before June 30 shall be included in the computation.
Total Benefits Paid
Unemployment benefits paid is the total amount of unemployment benefits paid to former
employees and charged to the account during the rate calculation period.
Payroll Factor
The payroll factor is determined by taking the lowest of the three or five year average taxable
payroll. Taxable payroll is the total of the first $7,000 paid to each employee in the calendar
year. DWS’ tax system will calculate and use the most advantageous payroll factor in the rate
calculation.
Example:
Year 5: $10,000
Year 4: $50,000
Year 3: $45,000
Year 2: $70,000
Year 1: $100,000
Option to Elect Last Year’s Payroll
An employer (other than one with the new employer rate) whose previous year’s total taxable
payroll is less than the three or five year average annual payroll may elect to use the previous
calendar year’s payroll as the payroll factor in computations of the experience rate.
Employers that wish to select this option must make their request in writing no later than July
31
st
immediately preceding the rate calculation year. Requests should be addressed to:
Division of Workforce Services
Employer Account Services
PO Box 8007
Little Rock, AR 72203
Deficit Rated Accounts
If, on the computation date, the total of all contributions credited to the employer for all
previous periods is less than the regular benefits charged to the employer’s account (negative
Net Reserve), the employer will be assigned a deficit rate.
Although many employers are assigned the maximum base rate, this does not cover the cost of
unemployment benefits chargeable to their accounts. As a result there are additional
assessments for deficit rated employers. Once an employer is assigned a 6.0% deficit rate for
four years an additional assessment of 2.0% is added raising the rate to 8.0%. If the account
remains deficit for eight years an additional assessment of 4.0% is added bringing the rate to
10.0%.
5 year average ($10,000 + $50,000 + $45,000 + $70,000 + $100,000)
divided by 5
$275,000/5 = $55,000
3 year average ($10,000 + $50,000 + $45,000) divided by 3
$105,000/3 = $35,000 lowest of the two averages = Payroll Factor
17
Employer Handbook
*Prior to the 2024 tax year, at six years deficit rating the additional assessment is 6.0% and the rate is 12.0% and starting in
2016 an account with a deficit rating for eight years or more receives an 8.0% additional assessment for a total rate of 14.0%.
Experience Rating Notices
On or before February 1 of each year an, “Experience Rating Notice” is sent to each liable
employer. This notice shows the rate the employer will use to compute the contribution due on
the taxable payroll for the current calendar year.
The total tax rate is identified as that portion of the tax applicable to the contributions tax,
stabilization tax, extended benefits tax, and advance interest tax, when in effect. The notice will
also show the various rate factors on the computation date which were used to determine the
assigned rate.
The notice should be inspected for accuracy. This notice is final and binding, unless written
application for review and redetermination is filed with the Division, within thirty days from the
date the notice was mailed.
Voluntary Payment Option
A voluntary payment may be an option to reduce the assigned base rate for an employer’s
account. Voluntary payments are used to increase the contributions credited rate calculation
factor and can result in a lower tax rate.
A voluntary payment schedule, if applicable to the employer’s account, is included with the
experience rating notice. Voluntary payments must be made by March 31. Upon receipt of the
voluntary payment, a new experience rate is calculated based on the updated reserve ratio and
a new experience rating notice will be mailed.
Such payment must be clearly identified as a voluntary payment, the amount being paid, and
the account(s) to which it is to be credited. No voluntary payment may be refunded after being
credited to an account. Payment may be made through the Tax21 system, or mailed to:
Division of Workforce Services
Attn: Voluntary Payments
PO Box 8007
Little Rock, AR 72203
For additional information on voluntary payments contact the Employer Accounts division at
(501)-682-3798.
Federal Unemployment Tax Credit
Most employers that pay Arkansas state unemployment tax are liable under the Federal
Unemployment Tax Act (FUTA). The annual tax paid under FUTA is used to fund the
administrative costs of the Unemployment Insurance program while Arkansas state
unemployment tax is used for the payment of benefits to eligible unemployed workers.
Each year consider a voluntary payment as a way to reduce tax rates.
Pay state unemployment taxes on time to receive full credit
against federal unemployment tax.
18
Employer Handbook
When state taxes are paid on time, a tax credit is given to reduce the FUTA tax regardless of the
Arkansas UI tax rate. In order to receive the full federal tax credit, state taxes must be paid
timely.
Reference IRS.gov/940-FUTA
Terminating Accounts
If an employer is going out of business or sells the business to a successor employer a “Report
to Terminate Account” (Form DWS-ARK-236) must be filed with the Division of Workforce
Services.
For additional information on terminating an account contact the Employer Accounts division
at (501)-682-3798.
Reimbursable Employers
A nonprofit organization, exempt from federal unemployment taxes under Section 501(a) of
the Internal Revenue Code of 1954, as amended, and state and local governmental entities,
including educational institutions, are offered an alternative method for paying state
unemployment taxes --the reimbursable payment option--a form of “self-insurance.” If an
employer opts for the reimbursable payment option, rather than pay quarterly taxes based on
a tax rate, it pays its pro rata share of the actual cost of any benefits paid to its former workers.
The reimbursement payment option must be chosen within thirty days of the date the
employer becomes liable under Arkansas’ unemployment tax law otherwise the account will be
set up to be tax rated. The required written notice of election should be mailed to:
Division of Workforce Services
Employer Accounts Services
PO Box 8007
Little Rock, AR 72203
Reference: Arkansas Code §11-10-713
Factors That Should Be Considered Before Becoming Reimbursable
1. This option is generally more advantageous for employers with stable employment; the tax-
rated basis is usually more advantageous for employers with high employee turnover.
2. Reimbursable payments will vary depending on the number of former employees receiving
unemployment benefits; however, with this option it is difficult to estimate costs. In
contrast, tax-rated employers can more accurately estimate unemployment costs because
their tax rates remain constant for a complete calendar year.
3. Employers that have elected the reimbursable payment option may not be relieved of
“charges” (benefit payments) for any reason. This includes cases where former employees
are paid benefits after a disqualification for quitting or discharge, or in cases where they are
paid benefits after subsequent employment and certain other circumstances. Although tax-
rated employers may be relieved of charges for specific individuals, the actual cost of the
benefits paid to those individuals is shared by all tax-rated employers.
19
Employer Handbook
Reimbursable Payment Option
1. Each quarter a report including all employees’ names, social security numbers, and total
gross wages must be completed using the Tax21 system. If that is not feasible for the
employer an “Employer’s Quarterly Contribution and Wage Report” (Form DWS-ARK-
209BR/CR) would be filed via mail. No payment is included with this report.
2. When former employees file for benefits, and if you were the claimant’s last employer a
notice will be provided for the opportunity to protest the employees’ receipt of benefits
based on the reason for separation.
3. When benefits are paid to former employees in a calendar quarter, a “Quarterly Listing of
Reimbursable Benefits Paid” (Form DWS-ARK-547) will be mailed following the end of the
quarter. This listing will contain the names and Social Security numbers of former
employees paid benefits in that quarter and the amount of the account's proportionate
share of charges.
4. In the event the extended benefits tax (see Extended Benefits) is in effect:
• Non-profit reimbursable employers must reimburse one half of the extended
benefits charged to the account.
• Governmental entities must reimburse the full amount of the extended benefits
charged to the account.
Administrative assessment, stabilization, and the advanced interest taxes do not apply to
reimbursable employers.
Advanced Payments
Employers that choose the reimbursable payment option must estimate the amount of benefits
that will be charged to them and make quarterly advance payments of those benefit charges.
The estimate is based on the total benefits charged to the account in the fiscal year ending on
June 30 of the immediately preceding calendar year.
Advance payments are due the tenth day of the first month of each calendar quarter:
• January 10
th
• April 10
th
• July 10
th
• Oct. 10
th
End of Year Balances
After the end of the calendar year, the Division will determine whether the total amount of
payments made for the year by the employer is less than, or in excess of, the total amount of
benefit payments chargeable to the employer. If the total advance payments were less than
the total benefit charges, the unpaid balance is due within thirty days after the mailing date of
the notice of the amount.
If the advance payments exceed the benefits charged, all or part of the excess may, at the
option of the employer, be refunded to the employer or retained as part payment against
future payments.
20
Employer Handbook
RESPONSIBILITIES AS AN EMPLOYER
Filing Quarterly Wage Reports
Employers are required by Law to file wage reports on a quarterly basis whether wages have
been paid in the quarter. Quarterly reports may be filed in the two following formats:
1. Online through the Tax21 system at
https://www.employment.arkansas.gov/Tax21/Home.aspx
2. Paper reports may be submitted utilizing the following forms (Form ARK-DWS-209B or
DWS-ARK-209BR Reimbursable Employers Only or DWS-ARK-209BS Seasonal Industries
Only).
Electronic Filing Requirement
If an employer has two hundred and fifty or more employees, it is a requirement to file via
electronic transmission using the Tax21 system. Failure to fully comply with the electronic
reporting requirements could result in the assessment of additional penalties.
For additional information contact Employer Accounts at (501)-682-3798.
Report Due Dates
Quarterly wage reports are due quarterly on the following schedule:
For Wages Paid During
Calendar Qtr. Ends
Report Due By
Jan, Feb, Mar
March 31
April 30
Apr, May, Jun
June 30
July 31
Jul, Aug, Sep
September 30
October 31
Oct, Nov. Dec
December 31
January 31
PENALTIES
Tax Rated Account Penalties
Any liable employer whose report is filed or postmarked late will be assessed a penalty charge
as follows:
• $10.00 or 5% of tax due (whichever is greater) if the report is filed within twenty
days after the due date.
• $20.00 or 10% of tax due (whichever is greater) if the report is filed more than
twenty days after the due date.
• $30.00 or 15% of tax due (whichever is greater) if it is necessary to estimate the
wages, subpoena wage records, all information required is not supplied, including
but not limited to, employer wage information, employee Social Security numbers,
as well as, any non-compliance of electronic reporting.
Reimbursable Penalties
Any reimbursable employer whose report is filed or postmarked late will be assessed a penalty
charge as follows:
• $10.00, if the Quarterly Report is filed within twenty days after the due date.
21
Employer Handbook
• $20.00, if the Quarterly Report is filed more than twenty days after the due date.
PAYING TAXES
(This section does not apply to nonprofit and governmental employers that have chosen the
reimbursable payment option,
unless
otherwise noted.)
Employers must report total wages paid to all employees in the quarter, unless specifically
excluded by Law, but pay taxes on only the first $7,000 paid to each worker in the calendar
year. Subtract “excess wages,” (amounts over $7,000 paid to each worker) from total wages, to
determine taxable wages.
The unemployment tax payment is to be remitted with the quarterly report and is used solely
for the payment of unemployment benefits. Payments will be considered delinquent if not
postmarked or received by the Division of Workforce Services on or before the last day of the
month following the close of the calendar quarter. An interest charge of 1.5% per month is
assessed on delinquent payments.
(Note: Employing units which reimburse in lieu of taxes are subject to the same interest
charges as those for employers paying taxes).
A “Contribution Account Transaction” (Form DWS-ARK-213A) is sent to an employer when full
payment is not received by the date due.
The Director is authorized to impose a penalty of 10% of the face amount of the check, draft, or
order or $10.00, whichever is greater, when such form of payment is returned without having
been paid in full. This penalty is cumulative to any other penalties provided by Law.
A Contribution Account Transaction (Form DWS-ARK-213A) is also used to notify
employers of any credit due if an account is overpaid. The next Quarterly Report, and the
accompanying contribution payment due will be reduced by the amount of credit at that time. If
the overpayment is a substantial amount, or if it is not likely to be used within two quarters, a
refund may be preferred. To obtain a refund, mail (Form DWS-ARK-213A) to:
Division of Workforce Services
Employer Accounts Services
PO Box 8007
Little Rock, AR 72203
Keeping Records
Arkansas regulations require liable employers to preserve and make available for inspection,
employment records containing the following information for a period of five years from the
end of the month following the end of the calendar quarter to which such records pertain. The
records must contain:
1. Full name and Social Security number of each worker employed during any pay period.
Penalty may be assessed for failure to provide Social Security number.
2. Place of employment.
3. Amount of wages paid for each pay period, segregated as to cash payment and payment
made in other forms.
4. Amounts paid as allowance or reimbursement for traveling or other business expenses,
22
Employer Handbook
dates of payment, and amounts of such expenditures actually incurred and accounted
for by the employee.
5. Date each worker was hired, rehired, or returned to work after a temporary layoff.
6. Number of hours spent in covered employment and, if applicable, number of hours
spent in non-covered employment in each pay period.
All employers, in industries declared seasonal by the Director, must keep a separate record of
the wages paid for employment within a seasonal period and the wages paid outside a seasonal
period.
Field Tax Representatives conduct regular examinations of employer payroll records. The
purpose of these audits is to ensure that all employers understand and are complying with the
Division of Workforce Services Law and Regulations. There are civil and criminal penalties for
employers and individuals representing employers for willfully failing or refusing to produce or
permit the inspection of the required records.
Reporting Changes to the Employer Account
When an employer’s business changes it is the employer’s responsibility to notify DWS of these
changes. A delay in notification could result in additional costs later. Be sure to report changes
such as:
1. Discontinuing the business
2. Changing the address or other contact information
May be completed on the Tax21 system.
For the following changes:
3. Transferring or selling the business
4. Changing the name of the business
5. Changing the ownership of the business
6. Acquiring another business
All changes must be reported in writing via email within ten days to:
[email protected]
or mailed to:
Division of Workforce Services
Employer Accounts Services
PO Box 8007
Little Rock, AR 72203
Employer Accounts Services may be contacted at (501) 682-3798 to advise of a change and
request the necessary documents/forms.
Providing Information to Employees
Every employing unit which is, or becomes an employer, under the provisions of the Division of
Workforce Services Law is required to post, on a continuing basis, a printed notice informing
workers that the employer is covered under Arkansas unemployment law and that in the event
of unemployment, employees may file for unemployment insurance benefits. These notices
23
Employer Handbook
must be displayed in locations readily accessible to employees. A “Notice To Employees” (Form
DWS-ARK-237) is available on the DWS website that can be accessed at
www.arkansas.gov/esd/ working on updating form on the web. Employer Services, UI Employer
Forms.
Providing Notice of Plant Closings or Mass Layoffs
The Division of Workforce Services has been designated as Arkansas’ Dislocated Worker unit.
Should an employer be required to provide notice of plant closings or mass layoffs to this unit,
as provided for in the Worker Adjustment and Retraining Notification Act of 1988 (WARN, PL
100-379), the notice should be [email protected] or mailed to:
Arkansas Division of Workforce Services
PO Box 2981
Little Rock, Arkansas 72203
With the following information included:
1. The name and address of the employment site where the plant closing, or mass layoff will
occur.
2. The nature of the planned action, i.e., whether it is a plant closing or a mass layoff.
3. The expected date of the first separation, and the anticipated schedule for making
separations.
4. The job titles of positions to be affected, and the number of affected employees in each job
classification.
5. A statement as to the existence of any applicable bumping rights. Bumping rights provide for
an employee to displace another employee due to a layoff or other employment action as
defined in a collective bargaining agreement, employer policy, or other binding agreement.
6. The name of each union, along with the name and address of the chief elected officer of
each union.
7. The name, address, and telephone number of a company official to contact for further
information.
In addition, it is recommended that the notice include a statement of whether the planned
action is expected to be permanent or temporary, and if temporary, its expected duration.
Additional information may be obtained by contacting the DWS Dislocated Worker’s unit at
(501) 683-1412.
Reporting Newly Hired and Returning Employees
On October 1, 1997, the Division of the State New Hire Registry was created by Act 1276 of the
Arkansas General Assembly to compile an automated state registry of newly hired and
returning employees. State agencies will use this information to detect and prevent fraud in the
areas of unemployment insurance, worker’s compensation and other types of public
assistance. In addition, such information will be used to locate absent parents that owe child
support in Arkansas.
All Arkansas employers – private, nonprofit and government – must report all newly hired em-
ployees that live or work in Arkansas via the Tax21 system.
Out-of-state employers that hire employees that work in Arkansas must also report. The
24
Employer Handbook
employer must report any employee that fills out a W-4 form whether full-time, part-time or
student worker. The employee’s name, address, Social Security number, as well as the
employer’s name, address, and Federal Employer Identification Number (FEIN) must be
reported.
Employers must report a new hire within twenty days of hiring an employee in the Tax21
system.
For further information, call the Employer Accounts unit (501)-682-3798.
If you are a multi-state employer, newly hired employees may be reported to the state in which
they are working or select one State in which to report all new hires. If one State is chosen, new
hire reports must be submitted electronically. In addition, a letter must be submitted to the
U.S. Secretary of Health and Human Services which includes the FEIN, company name, address,
telephone number, state chosen to receive reports, list of states where employer has
employees and name of contact persons. The letter should be addressed to:
Office of Child Support Enforcement (OCSE)
Multi-State Employer Registration
PO Box 509
Randallstown, MD 21133
For more general information call (202) 401-9267.
25
Employer Handbook
BENEFIT PAYMENTS
Unemployment Insurance benefit payments are
made to workers (claimants) that are temporarily
unemployed through no fault of their own and are
attempting to reenter the labor force. UI taxes paid
by Arkansas employers fund the entire cost of UI
benefits paid. UI taxes cannot be withheld from
the wages paid to employees.
Since the amount of benefits charged to an employer’s account is one of the factors in
determining an employer’s UI tax rate, it is to an employer’s advantage to become familiar with
the UI benefit provisions of the Division of Workforce Services Law.
Before an individual can receive unemployment benefit payments, several basic requirements
must be met:
1. The worker must show a prior attachment to the labor force.
2. The worker must not have caused the unemployment.
3. Benefits are paid only to workers unemployed through no fault of their own.
4. The worker must maintain an attachment to the labor force while collecting benefits, by
making reasonable attempts to obtain gainful employment.
How Are Unemployment Benefit Amounts Determined?
Calculating the Base Period
Only wages paid during a twelve month period called the base period are used in establishing
unemployment benefit amounts. The traditional base period is the first four of the last five
completed calendar quarters prior to the date the claimant files for benefits. For example, a
claim filed on March 1, 2023, would have a base period of October 1, 2021 through September
30, 2022.
If a claimant cannot establish a claim using a traditional base period an “alternate base period”
is used. The alternate base period consists of the four quarters immediately preceding the
quarter in which the claim is filed. For example, a claim filed on March 1, 2023 would have an
alternate base period of January 1, 2022 through December 31, 2022. The alternate base
period is not an option for claimants and can only be selected by the agency only if the claimant
cannot set up a traditional base period claim due to insufficient base period wages.
Monetary Eligibility
To qualify monetarily a claimant must have covered wages (reported by an employer) in at least
two quarters of the base period and total base period wages must equal thirty-five times the
weekly benefit amount. For succeeding benefit year claims, a claimant must have had covered
work in a least two quarters of the base period and must have worked and been paid wages
equal to eight times the weekly benefit amount, since the filing date of the prior claim.
26
Employer Handbook
Calculating the Weekly and Maximum Benefit Amounts
The weekly benefit amount is calculated by dividing the claimant’s average base period wages
by 26 and then is limited by a minimum weekly benefit amount of $81 and a maximum weekly
benefit amount of $451. A claimant may collect a total of sixteen times (updated to twelve
times for claims filed after 01/01/2024) the weekly benefit amount in regular UI benefits or
one-third of the total base period wages, whichever is less.
How Do Employers Know When a Claim has been Filed?
Each time a new or additional claim is filed, a “Notice to Last Employer” (Form DWSARK-
501(3)), is mailed to the claimant’s last employer. These notices are mailed to the address of
the employer determined to be the claimant’s last employer immediately prior to filing the
claim.
Immediately upon receipt carefully review the Notice to Last Employer. To ensure that claims
for benefits are properly adjudicated and to establish non-charging rights, it is imperative that
the response be submitted within ten calendar days of the mailing date of the notice. If no
reply is made within the ten calendar day period DWS issues the determination based upon the
best available information. An employer that does not respond timely to the Notice to Last
Employer waives the right to protest charges resulting from the determination.
Each time an individual files a new claim for benefits, a “Notice to Base Period Employer” (Form
DWS-ARK-550) is sent to each base period employer (an employer that paid wages to the
claimant during the claimant’s base period). This notice is not sent to the last employer if the
employer is also a base period employer. As a base period employer, the worker’s reason for
separation from employment determines whether an account will be charged for its
proportionate share of any benefits paid to the claimant. To ensure proper charging and to
establish non-charging rights, it is imperative that the response is submitted within fifteen days
of the date the notice was mailed.
DWS has the capability to mail unemployment insurance claim forms to specific
locations/addresses that are different from an employer’s tax/payroll address. To set up a
special mailing address, a written request must be submitted. Employers may manage their
accounts via the Tax21 system. From this site employers can:
• Apply for a new ADWS Employer Account Number
• File and pay Employer’s Quarterly Contribution and Wage Report
• Request that Unemployment Insurance Benefit Claims documents be sent to a different
address than the tax documents.
• Respond to UI 901A Overpayment Wage Response System.
• Receive and Respond to Benefit Notices
• Report a Refusal of an Offer of Work
• Report a Failure to Submit to or Pass a Pre-Employment Drug Screen
To be eligible for non-charge rights employers must return the Notice to Last
Employer within ten calendar days of its mailing date.
27
Employer Handbook
When Are Benefit Payments Made?
After a claimant is determined monetarily eligible, two major factors determine whether
benefit payments will be made:
1. The reason for separation from last employment.
2. Maintaining continuing eligibility requirements.
The Reason for Separation from Last Employment
Each application for benefits requires the claimant to explain the reason for losing employment
from the last employer. Aside from the Notice to Last Employer the last employer generally is
also sent a questionnaire Form DWS-ARK- 525 to request verification of the reason for
unemployment and to obtain specifics about the separation.
When a claimant has been discharged it is the employer’s burden to establish that the reason
for the discharge was due to the claimant’s misconduct. It is not enough to respond by saying
that the claimant was discharged for disqualifying reasons. Rather, specific facts must be
provided to establish that the claimant’s behavior was such that it violated a known rule or
standard of behavior that employers have a right to expect of its workers. Accurate records of
dates of incidents or infractions leading to the dismissal, warnings, and disciplinary actions can
be used to establish misconduct.
On the other hand, when a worker voluntarily leaves or quits employment it is the worker’s
burden to establish that there were work related reasons for quitting and that there was no
choice but to quit.
After the initial information gathering phase is completed, both parties may be contacted for
additional information. Once the necessary facts are gathered DWS issues a “Notice of Agency
Determination” (Form DWS-ARK- 578).
Each Notice of Agency Determination contains a summary of the section of the law used to
decide the issue and presents a statement showing the facts which were considered in
adjudicating the issue. Instructions for filing an appeal are also found on each determination.
The following issues are the ones that most commonly affect an employer’s account when
benefits are paid:
Keep accurate records of employment agreements and employee performance.
Record dates of warnings and descriptions of incidents leading up
to the dismissal of an employee.
28
Employer Handbook
A Determination that the
Worker:
Effect on Worker
(Separation from Last
Employer)
Effect on Last Employer*
Voluntarily quit without good
cause in connection with the
work.
OR
Failed, without good cause, to
contact the Temporary Help
Firm for reassignment upon
completion of the assignment
provided the Temporary Help
Firm advised the temporary
employee at the time of hire
that he/she must report for
reassignment upon conclusion
of each assignment and that
unemployment benefits may
be denied for failure to do so.
Disqualified until subsequent
to filing claim, there have
been at least thirty days in
new covered employment.
Reference: Ark. Code Anno-
tated 11-10-513(3)
Account non-charged if Notice to
Last Employer returned timely.
Was laid off due to a lack of
work or reduction in force.
OR
Was discharged for reasons
other than misconduct.
OR
Voluntarily quit with good
cause in connection with the
work.
Eligible for unemployment
compensation if other eligibility
conditions are also met.
Account charged.
Was suspended for misconduct
in connection with the work.
Disqualified for the duration of
the suspension or eight (8)
weeks, whichever is the lesser.
Reference : Ark. Code Anno-
tated 11-10-512 and 11-10-
514(c)(1)-(2)
A charge decision is not
made since permanent
separation from
employment has not
occurred.
29
Employer Handbook
A Determination that the
Worker:
Effect on Worker
(Separation from Last
Employer)
Effect on Last Employer*
Was discharged for miscon-
duct in connection with the
work.
Disqualified until
subsequent to filing claim,
there have been at least
thirty days in new covered
employment.
If gross misconduct is
involved, the disqualification
shall be until the claimant
earns insured wages in two
quarters that total not less
than thirty five times the
weekly benefit amount.
Reference: Ark. Code
Annotated 11-10-512, 11-10-
514(a)(1)-(3), and 11-10-514(b)
Account non-charged if Notice
to Last Employer returned
timely.
Refuses an offer of suitable
work or fails to apply for or
to accept suitable work.
OR
Failed to appear for a quali-
fied Department of Transpor-
tation (D.O.T.) drug screening
after a bona fide offer of
suitable work.
OR
Failed to pass a qualified
D.O.T. drug screening after a
bona fide offer of suitable
work.
Disqualified until subsequent
to filing claim, there have been
at least thirty days in new
covered employment.
Disqualified until the claimant
earns insured wages in two
quarters that total not less
than thirty five times the
weekly benefit amount.
Reference: Ark. Code
Annotated Section 11-
10-512 and 11-10-
515(a)(1)-(2)
N/A
30
Employer Handbook
A Determination that the
Worker:
Effect on Worker
(Separation from Last
Employer)
Effect on Last Employer*
Received other remuneration
such as:
(a) Dismissal Payments
(b) Vacation Payments
(c) Bonus Payments
(d) Unemployment Insur-
ance from another state
or from the United
States Government.
(e) Retirement Pay
(f) Separation Pay
Treated as earnings
Reference: Ark. Code
Annotated Section 11-
10-517
Disqualified
Weekly benefits reduced by an
amount equal to the amount
of the pension reasonably
attributed to the week.
(Separation from Last
Employer)
Separation payments are
disqualifying for the number
of weeks following the date
of the separation that equals
the number of weeks of
wages received in the
separation payment.
Refuses while on layoff to
report for work within one
week after notice of recall to
the same job, or to a
suitable job similar to the
one from which he/she was
laid off, or, if while
unemployed, voluntarily
removes their name from a
recall list set forth in a
written contract of a base
period employer provided
the employer files a written
notice of the refusal of recall
or removal from a recall list
with the Agency within
seven days of such
occurrence.
Disqualification shall begin on
the date of receipt of the
written notice of refusal of
recall or removal from recall
list by the Agency and shall
continue until, subsequent to
filing a claim, the worker has
had at least thirty days of
employment covered by an
unemployment compen-
sation law of this state, or
another state of the United
States.
Reference: Ark. Code
Annotated Section 11-
10-516
N/A
N/A
31
Employer Handbook
Made false statements on a
continued claim in order to
obtain benefits to which
he/she is not entitled.
Disqualified for thirteen weeks of
unemployment plus an additional
three weeks for each week of
fraud, repayment of all benefits
obtained as a result of fraudulent
acts, total reduction of
subsequent benefits on the
current and possible prosecution
and, if conviction results, the
imposition of fines and
imprisonment.
Reference: Ark. Code Annotated
Section 11-10-519 (2)
The overpayment is created
and the account will be
credited for charges
assessed based on
erroneous benefit
payments.
For a Tax Rated account, the
credit will be applied to the
calendar quarter the
overpayment becomes final.
For a Reimbursable account,
the credit will be applied
during the quarter that
benefits are paid back.
A Determination that the
Worker:
Effect on Worker
(Separation from Last Employer)
Effect on Last
Employer*
Made false statements on an
initial or renewed claim in order
to obtain benefits to which
he/she is not entitled.
Disqualification from the date
of filing the claim until he/she
has had ten weeks of employ-
ment in each of which he/she
has earned wages equal to at
least the weekly benefit
amount.
Reference: Ark. Code Anno-
tated Section 11-10-519 (1)
The account would be
credited for any charges
that had been assessed,
based on any erroneous
payment of benefits and
the overpayment would be
created. For a Tax Rated
account, the credit will be
applied to the calendar
quarter during which the
overpayment becomes
final. For a Reimbursable
account, the credit will be
applied during the quarter
that benefits are paid back.
32
Employer Handbook
Continuing Eligibility Requirements
In addition to being involuntarily unemployed, a claimant must also meet several other
requirements before receiving a payment of unemployment benefits. A claimant must:
• Register for work with the Division of Workforce Services.
• A claimant must be considered physically and mentally able to perform suitable work.
• A claimant must be seeking employment he/she is suited to by training or experience in a
manner which will provide a reasonable opportunity of obtaining work. A claimant that restricts
their availability to seek and accept work because of retirement, school attendance (except
approved training), dependent care or other responsibilities, transportation problems, or
unrealistic work hours or wage demands, may be denied benefits.
• Contact DWS as directed.
• Serve a waiting period of one week in each benefit year, prior to the payment of benefits. The
first week of a claim during which the claimant meets all eligibility requirements is known as the
waiting week. Benefits are not payable during that period.
• Not refuse an offer of suitable work or fail to apply for or accept suitable work. A claimant that
refuses a bona fide offer of suitable work or fails to apply for or accept suitable work will be
denied unemployment benefits.
• Not have left or lost employment because of a labor dispute that continues during the period in
which benefits are paid.
Any time information or evidence that a worker is not meeting one or more of these continuing
eligibility requirements is received by DWS the issue will be investigated. The Tax21 system is
available to report any of the above issues.
Multiple Base Period Employers and Benefit Charging
When there are multiple employers in the Base Period benefits are charged in proportion to the
percentage of wages paid to the claimant in the base period by each base period employer. For
example the wages paid to the former worker during the base period equal 25% of the total base
period wages, then the share of charges will be 25% of any benefits paid. The total amount the
employer could be charged for rating purposes is included on the “Notice to Base Period Employer”
(Form DWS-ARK-550)
Quarterly Notice of Benefit Charges
A “Quarterly Statement of Paid Benefits Charged to Your Account” (Form DWS-ARK546) is mailed
each quarter listing all unemployment benefits charged to an employer’s account in the preceding
calendar quarter. It lists the names and Social Security numbers of the workers and the amount of
benefits charged to the account. It also designates first time charges with an * which is important
as charges related to a claim may only be protested the first time they appear on a charge
statement.
Immediately upon receipt the charge statement should be reviewed. Any discrepancy should be
reported in writing to: Division of Workforce Services
Employer Charge Unit
PO Box 8011
Little Rock, AR 72203
33
Employer Handbook
The letter of protest can also be faxed to (501) 682-1599. The protest letter should include the name
and Social Security number of the claimant in question, the name and account number of the
business and an explanation of the reason(s) for the protest of the charges. All charge protests must
be submitted within thirty days from the mailing date that appears on the statement.
DWS will respond in writing to all protests. Further appeal of the charges is via petition to the clerk
of the circuit court in the employer’s county of residence or Pulaski County for out of state
employers.
Reimbursable Employer Billings
The process of charging or noncharging benefits paid does not apply to reimbursable employers. At
the end of each quarter, each reimbursable employer is mailed a quarterly listing of benefit charges
indicating the benefits paid (Form DWS-ARK-547).
While the noncharging provisions of the law do not apply, reimbursable employers can protest the
amount of the charges listed. Before charges become final, reimbursable employers may file a
written application for review and redetermination to:
Division of Workforce Services
Employer Charge Unit
PO Box 8011
Little Rock, AR 72203
The application must be made the first time charges appear on the quarterly charge notice. First
time charges are designated by an *. Subsequent charges on the same claimant in the same benefit
year cannot be challenged.
Detection and Prevention of Improper Payments
To ensure proper payment of UI benefits, DWS has a continuous program of checking claim records
for the discovery and prevention of fraudulent claims for unemployment insurance benefits.
A random sample of wage items reported on contribution reports is matched by Social Security
number with the benefit payment records for the same calendar quarter. When both wages and
benefit payments appear, the record is carefully examined. If necessary, a request for weekly payroll
information, “Benefit Audit and Investigation” (Form DWS-ARK-901A) is mailed. Replies to these
requests are necessary for DWS to properly audit and investigate benefits paid. These can be
submitted via the Tax21 system.
In addition to the wage audit investigations, field investigators make regular checks with employers
regarding specific claims and conduct audits and investigations as needed.
Under the DWS Benefit Accuracy Measurement (BAM) Program UI claims are randomly selected for
a thorough investigation to determine whether the claim was properly paid. This investigation
requires DWS employees to contact the claimant’s previous employers to review pertinent wage
and separation information.
Interstate and Combined Wages Claims
A former worker that no longer resides in Arkansas may file a claim for UI based on wages earned
from an Arkansas employer. This type claim is known as an “interstate” claim. The worker’s
eligibility for benefits and charges to a UI tax account are determined in the same manner as if the
worker had filed the claim in Arkansas.
A former worker that last worked in Arkansas may have base period wages earned in another state.
34
Employer Handbook
If elected by the claimant the wages may be combined to pay UI benefits on a claim filed in either
state. This type claim is known as a “combined wage claim.” The process for obtaining the claim
information varies by state. It is important to return the claim forms from the other states when
received to assist the other state in determining the claimant’s eligibility to receive UI benefits.
Benefits paid to UI claims originating in other states will affect your Arkansas rate in the same
manor of an instate claim.
Federal-State Extended Benefits Program
Public Law 91-373 of 1970 and Arkansas Act 35 of 1971 created a program of extended benefit
payments to be shared equally by the Federal Government and the State. The extended benefit
program provides payment of up to thirteen weeks of additional benefits during periods of high
unemployment in the state. To qualify for this extension of benefits, a worker must have exhausted
the total amount payable on the regular UI claim and must meet special work search and other
eligibility requirements.
All employers, except reimbursable employers, are subject to a 0.1% tax on taxable payrolls to
finance the payment of extended benefits. When the Extended Benefits Account assets on the
computation date exceed 0.2% of total employer payrolls for the preceding calendar year, the
extended benefits tax is suspended during the current rate year. This tax payment will not be
credited to an employer’s separate account. Extended benefits paid to a claimant shall not be
chargeable to the account of any employer that pays contributions.
Private, nonprofit reimbursable employers must reimburse the Extended Benefits Account in the
amount of one-half of any extended benefits paid and will be so billed. Government reimbursable
employers must reimburse the Extended Benefits Account for 100% of any extended benefits paid.
The annual “Experience Rating Notice” will show the rate of extended benefits tax to be applied to
payrolls reported for the current calendar year.
Shared Work — An Alternative to Total Unemployment
The Shared Work program provides employers experiencing a business downswing the opportunity
to retain trained personnel until business picks up. In lieu of a layoff, a group of worker’s weekly
hours may be reduced by at least 10% but not more than 40%. To compensate for the reduction in
hours and wages, the worker is entitled to weekly unemployment benefits proportionate to the
reduction in the number of hours worked.
To qualify for benefits under the Shared Work Program, employees must be regularly employed by
an employer whose plan to stabilize its work force has been approved by the Director or his duly
authorized representative of the Division of Workforce Services.
Reference: Ark. Code Annotated Section 11-10-601 through 11-10-613
Trade Adjustment Assistance and Trade Readjustment Allowance
Trade Adjustment Assistance (TAA) is a federally funded program designed to assist workers
adversely affected by foreign competition. Eligible workers are provided assistance during periods of
unemployment and underemployment. This program assists affected workers in obtaining
satisfactory employment using a full range of manpower services including training, job search and
relocation allowances.
35
Employer Handbook
Trade Readjustment Allowance (TRA) is a federally funded program available to
workers whose unemployment is linked foreign competition. Weekly allowances are paid to eligible
workers following their exhaustion of unemployment benefits. Usually, these allowances are paid
only if the individual is enrolled in a TAA approved training program.
Disaster Unemployment Assistance
The Disaster Unemployment Assistance program became law under provisions of the Disaster Relief
Act of 1974. Under this Act, the President of the United States, through the Federal Emergency
Management Agency, can declare specific areas of the State as disaster areas. The purpose of this
program is to provide payment and reemployment assistance to qualified individuals that are
unemployed as the direct result of a major disaster.
When DUA assistance is applicable in our state, a news release will be issued by DWS notifying the
public, as well as, when applications may be accepted. FEMA will also likely play a role in
disseminating information about DUA, including where and how to apply. FEMA funds this program
and administration and benefit payments do not affect the state trust fund.
How Can I Keep My Unemployment Costs Down?
Stabilize Employment
o Hire versatile employees that can be shifted to another job if necessary.
o Transfer employees to other job sites when feasible.
o Use regular employees for repairs and maintenance during slack periods.
o Consider reducing the work week under the Shared Work program.
Minimize Charges
o Keep accurate records of employment agreements, employee performance, dates and details of
warnings and other disciplinary measures.
o Return the “Notice to Last Employer” (Form DWS-ARK-501(3)) within ten days from the date the
notice was mailed. Provide specific information about the reason for separation from
employment if it was for a reason other than lack of work.
o Return the “Notice to Base Period Employer” (Form DWS-ARK-550) within fifteen days from the
date the notice was mailed. Provide specific information about the reason for separation from
employment if it was for a reason other than lack of work.
o Take the time to appeal if there is reason to believe a determination is incorrect.
o Notify DWS promptly with information that a claimant is not available for work, not able to
work, has refused work, or is employed.
o Compete and return wage audit notices accurately and timely.
Maintain a Good Tax Rate
o Submit quarterly wage reports timely to avoid penalties.
o Pay taxes promptly to obtain maximum Federal Unemployment Tax credit.
o Promptly report all account changes to:
36
Employer Handbook
Division of Workforce Services
Employer Account Services
PO Box 2981
Little Rock 72203
o Do not report non-taxable payments or employees in exempt employment.
o Compute all tax payments carefully.
o Consider making a voluntary payment to lower the UI tax rate.
Report Fraud or Abuse
o Utilizing the Tax21 system, or call 501-682-1058.
37
Employer Handbook
APPEALS
Whenever a determination is made that affects an
account’s tax liability, a written determination is mailed.
Each determination provides separate appeal rights; in all
cases an appeal must be made in writing and within the
time specified in the notice.
IT IS EXTREMELY IMPORTANT TO SUBMIT ANY APPEAL
WITHIN THE TIME FRAME INDICATED.
Read each determination carefully to determine how to
appeal and the deadline for filing the appeal
Notice of Claimant Eligibility
A “Notice of Agency Determination” (Form DWS-ARK-578) will be issued stating whether a former
employee is eligible for unemployment benefits, the applicable section of Law under which the
determination is made, and a statement showing the facts which were considered in adjudicating
the issue. Instructions for filing an appeal are also on the determination notice.
Both the employer and the claimant have the right to appeal an adverse DWS determination. The
appeal must be filed within twenty days after the date the determination was mailed. If no appeal is
filed the determination becomes final.
Appeals of the Notice of Agency Determination may be mailed to:
Arkansas Appeal Tribunal
PO Box 8013
Little Rock, AR 72203
Dropped off at a local office or faxed to (501) 682-7734
If mailed, an appeal will be considered to have been filed as of the date of the postmark on the
envelope. If filing directly to the Tribunal, please include a copy of the “Notice of Agency
Determination” (Form DWS-ARK-578) along with written request for appeal.
Hearing officers at the Tribunal conduct hearings via telephone. The claimant and all affected
employers are notified of the hearing and are expected to participate. These hearings investigate
specific issues surrounding a claim and the resulting decision will be made as though no previous
determination had been issued.
The nature of these appeal hearings makes it vital that employers participate if the Tribunal is to
make a correct decision. Because testimony is taken under oath at the hearing, information
previously provided to DWS does not carry the same weight as the information presented at the
Tribunal hearing. Employers having information about the claimant’s eligibility are strongly
encouraged to attend these hearings, not only to assist in paying benefits properly, but also to
protect the employer’s interests. Witnesses and representatives for the employer should be
individuals with firsthand knowledge of the events surrounding the issue on appeal.
Protect your rights, file Appeals within established time frames
38
Employer Handbook
All decisions rendered by the Appeal Tribunal are made in writing and copies sent to all interested
parties. If any party disagrees with the decision, an appeal may be made to the Board of Review.
Appeals to the Board must be made within twenty calendar days after the date the Tribunal decision
is mailed. Instructions for filing an appeal to the Board accompany each Tribunal decision.
A decision rendered by the Board of Review will become final within thirty calendar days after the
date the decision is mailed, unless a petition for review is filed in the Arkansas Court of Appeals.
Reference: Ark. Code Annotated Section 11-10-523 through 11-10-530
Telephone Number: Appeal Tribunal (501) 682-1063; Board of Review (501) 683-4300.