Overview: When starting a business in Arkansas with employees, you’ll need to register for State Income Withholding Tax through the Department of Finance and Administration (DFA) and for Unemployment Insurance (UI) Tax through the Division of Workforce Services (DWS). Both registrations ensure your business is compliant with state payroll and unemployment laws.
Important! This guide does not constitute legal or tax advice. You can consult a CPA or attorney for official guidance.
Taxes You Must Register For:
State Income Withholding Tax
Tax Agency: Arkansas Department of Finance and Administration (DFA)
Tax Type: State Withholding Income Tax
Registration Steps
Step 1: Register for a Withholding Account ID
Visit: https://atap.arkansas.gov/_/
Under “Quick Links,” click Register New Business
Complete the online application to receive your Arkansas Tax Account ID
Step 2: Set up your ATAP login credentials
Go back to: https://atap.arkansas.gov/_/
Click Sign Up to create an online user account
Choose delivery method for your authorization code (email or SMS)
For future logins, you can opt to trust your browser or request a new code each time
Once received, update your Buddy Punch account with your Arkansas Tax Account ID.
Need help?
Phone: (501) 682-1895
Email: [email protected]
Unemployment Insurance (UI) Tax
Important! You must register if you employ one or more individuals for 10+ days during a calendar year.
Tax Agency: Arkansas Division of Workforce Services (DWS)
Tax Type: Unemployment Insurance (UI)
Registration Steps
Step 1: Apply for an Employer Account Number
Click Register for ADWS Employer Account
Select: “My company has never registered with the AR Division of Workforce Services. I am applying for an employer account number.”
Complete the registration form and submit
Step 2: Set up your User ID
Click Set Up Your User ID
Choose: “Are you an Employer requesting a Login ID?”
Complete the form and verify your employer details
Once you have your UI Account Number, update your Buddy Punch account.
Need help?
Phone: (501) 682-2121
Email: [email protected]