Overview: Beginning September 11, 2017, Arkansas employers will have greater flexibility in the frequency with which they pay employee wages. Instead of paying employees only on a semimonthly basis, employers will be able to pay employees more frequently.
Effective Date: September 11, 2017
Coverage: All employers with employees in Arkansas.
Action Required: Please contact your Payroll Service Representative if you have any questions.
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On March 14, 2017, Arkansas Governor Asa Hutchinson signed House Bill 1609, providing employers flexibility in the frequency with which employee wages are paid.
Currently, employers in Arkansas must pay employee wages on a semimonthly basis. On or after September 11, 2017, employers can begin paying employees on a more frequent basis than the previously prescribed semimonthly basis. Specifically, the new provision requires corporations doing business in Arkansas to pay wages no less frequently than semimonthly. This means you can now pay your employees on a daily, weekly, biweekly, or any other basis as long as your employees are paid no less than semimonthly or two times per month.
Corporations with an annual gross income of at least $500,000 may continue paying exempt management level and executive employees, who make more than $25,000 annually, at least one time per month.
If you have any questions, please contact your Payroll Service Representative.