The bill amends the Arkansas Income Tax Withholding Act of 1965 by reducing the threshold for employers required to file an annual income tax withholding statement electronically from 125 employees to 75 employees. Additionally, it mandates that employers who are required to file this annual statement electronically must also file their withholding returns electronically. The bill also introduces provisions for businesses that report and remit withholding tax on behalf of other employers, requiring them to file electronically if the other employer meets the electronic filing criteria.

Furthermore, the bill allows the secretary to waive the electronic filing requirement if it would cause undue hardship to an employer. The effective dates for the new provisions are set for tax years beginning on or after January 1, 2025, for the employee threshold change, and January 1, 2026, for the electronic filing requirements.

Statutes affected:
SB 503: 26-51-908, 26-51-909(b)
Act 616: 26-51-908, 26-51-909(b)