Arkansas paycheck calculator employers use for hourly paychecks
The Arkansas paycheck calculator at the top of this page makes it easy for employers to double-check payroll calculations for hourly employees and ensure they receive the correct take-home pay. It accounts for payroll taxes, overtime rates, and other common payroll factors used when calculating employee wages. Further down this page, you will also find additional information about how payroll calculations differ for salaried and hourly employees. If you reward employees with performance bonuses, you may also want to try our Arkansas bonus tax calculator.
Is Payroll Handled Differently for Hourly and Salaried Employees?
In general, the payroll process is very similar regardless of the type of employee. Employers begin with an employee’s gross wages, which is the total amount earned during a pay period, and then withhold federal, state, and local payroll taxes, along with any additional deductions such as health insurance premiums, retirement contributions, or wage garnishments.
While the overall payroll process remains the same, the key difference between hourly and salaried employees is how their gross wages are calculated. In Arkansas, employers may also need to account for state income tax withholding in addition to federal payroll taxes.
Gross Wages for Hourly Employees
For hourly employees in Arkansas, gross wages are calculated by multiplying the number of hours worked during a pay period by the employee’s hourly pay rate.
Although the basic calculation is straightforward, employers must also account for overtime pay requirements. Arkansas’s minimum wage and overtime rules generally apply to employers with four or more employees, and non-exempt employees are generally entitled to overtime pay when they work more than 40 hours in a workweek, unless an exemption applies. Overtime wages are typically paid at 1.5 times the employee’s regular hourly rate.
Employers should make sure payroll calculations properly account for overtime hours when determining gross pay for hourly workers.
Gross Wages for Salaried Employees
For employees who receive an annual salary, gross pay is determined by dividing the employee’s annual salary by the number of pay periods in a year.
For example, if an employee earns an annual salary of $100,000, their gross wages per pay period would look like this, assuming no other pre-tax deductions:
| Pay Schedule | Gross Wages (based on $100k salary) |
| Weekly (52 pay periods/year) | $1923.08 |
| Bi-Weekly (26 pay periods/year) | $3846.15 |
| Bi-Monthly (24 pay periods/year) | $4166.67 |
| Monthly (12 pay periods/year) | $8333.33 |
Employers should choose a pay schedule that works best for their organization while ensuring payroll compliance and accurate withholding calculations.
Who Should Be Salaried and Who Should Be Paid Hourly?
When hiring employees, employers have some flexibility in deciding whether a position should be paid hourly or through a fixed salary. Generally speaking, employees with consistent work schedules and higher levels of responsibility are often paid a salary, while employees whose hours fluctuate more frequently are typically paid hourly wages.
However, employers must also follow federal wage laws under the Fair Labor Standards Act and Arkansas wage-and-hour rules. In most cases, employees must receive overtime pay if they work more than 40 hours in a week unless they qualify as an exempt employee under applicable law. Arkansas also follows exemptions for certain executive, administrative, professional, and outside sales roles.
Common exempt categories include:
– Executive employees
– Administrative employees
– Certain professional employees
– Certain computer professionals
– Outside sales employees
– Certain highly compensated employees who meet federal exemption criteria
Employers should carefully review federal and state guidelines when determining employee classification to ensure compliance with overtime regulations.
Moving from Gross Wages to a Paycheck
After gross wages are calculated, the next step in the payroll process is to determine the employee’s net pay, also known as take-home pay. This is done by withholding applicable payroll taxes and applying any additional deductions.
Typical payroll withholdings include:
– Federal income tax withholding
– Social Security and Medicare taxes (FICA)
– Arkansas state income tax withholding
– Pre-tax deductions such as retirement plan contributions or health insurance premiums
– Any court-ordered or voluntary deductions that may apply
The paycheck calculator above helps employers estimate these payroll deductions and quickly determine an employee’s expected net pay for a given pay period.
Finished using the paycheck calculator Arkansas employers rely on? Here are some additional payroll resources that may be helpful.
Arkansas Payroll Quick Facts
State minimum wage
Arkansas’s state minimum wage is $11.00 per hour. The Arkansas Minimum Wage Act generally covers employers with four or more employees.
Workers’ compensation requirement
Most employers in Arkansas with three or more employees are required by law to carry workers’ compensation insurance coverage. There are also special rules for certain construction-related situations.
New hire reporting requirement
Yes. Federal and state law require employers to report newly hired and rehired employees in Arkansas to the Arkansas New Hire Reporting Center.
Arkansas unemployment insurance (SUI)
Taxable wage base: $7,000 per employee in 2026.
New employer tax rate: 2.0% in 2026.
Experienced employer tax rates range from 0.200% to 5.100%, with higher deficit rates possible in some cases.
This article and the paycheck calculator provided on this page are intended for informational purposes only. Payroll laws and tax regulations may change, and the calculations shown here are estimates. Employers should consult a qualified tax professional, payroll specialist, or legal advisor for official payroll guidance and compliance support.