26-51-902. Definitions.

26-51-902. Definitions. As used in this subchapter: (1) “Agricultural labor” means agricultural labor as defined in 26 U.S.C. § 3121(g), as in effect January 1, 1993; (2) “Calendar quarter” means the period of three (3) consecutive months ending on March 31, June 30, September 30, or December 31; (3) “Division” means the Revenue Division of the Department of Finance and Administration of the State of Arkansas; (4) “Employee” means any individual subject to the Income Tax Act of 1929, § 26-51-101 et seq., who performs or performed services for an employer and receives wages for the services; (5) “Employer” means a person doing business in or deriving income from sources within this state who has control of the payment of wages to an individual for services performed, or a person who is the officer or agent of the person having control of the payment of wages; (6) “Estimated tax” means the amount by which the tax liability of the taxpayer under the Income Tax Act of 1929, § 26-51-101 et seq., can reasonably be expected to exceed the amount withheld from wages of the taxpayer pursuant to this subchapter during the income year; (7)(A) “Income year” means the calendar or fiscal year upon the basis of which the net income of the taxpayer is computed under the Income Tax Act of 1929, § 26-51-101 et seq. (B) If no fiscal year has been established, it means the calendar year; (8) “Payroll period” means a period for which a payment of wages is made to the employee by the employer; (9) “Person” means individuals, fiduciaries, corporations, partnerships, limited liability companies, associations, the state and its political subdivisions, and the federal government and its agencies and instrumentalities; (10) “Taxpayer” means any individual, fiduciary, corporation, partnership, limited liability company, or other legal entity subject to the reporting requirements of the Income Tax Act of 1929, § 26-51-101 et seq.; (11)(A) “Transient employer” means an employer who is not a resident of this state and who temporarily engages in any activity within this state for the production of income. (B) Without intending to exclude others that may come within the definition of “transient employer” in subdivision (11)(A) of this section, any nonresident employer engaging in any such activity within this state which, as of any date, cannot be reasonably expected to continue for a period of eighteen (18) consecutive months shall be deemed to be temporarily engaged in such activity; and (12) “Wages” means remuneration in cash or other form for services performed by an employee for an employer, except that it shall not include remuneration paid: (A) For domestic service in a private home, local college club, or local chapter of a college fraternity or sorority; (B)(i) For agricultural labor, except that an agricultural employer who pays wages as defined in 26 U.S.C. § 3121(a), as in effect on January 1, 1993, to four (4) or more employees during any reporting period shall be required to collect, account for, and pay over Arkansas income taxes for that reporting period. (ii) An employer who pays wages for agricultural labor to three (3) or fewer employees during any reporting period shall have the option to collect, account for, and pay over Arkansas income taxes for each reporting period if the employer so chooses; (C) For services not in the course of the employee's trade or business performed by an employee in any calendar quarter unless the remuneration paid for such services is one hundred fifty dollars ($150) or more; (D) For services performed by an ordained, commissioned, or licensed minister of a church in the exercise of his or her ministry or by a member of a religious order performing duties required by the religious order; (E) For active service performed in a month in which the employee is entitled to the benefits in 26 U.S.C. § 112, adopted by § 26-51-306, to the extent remuneration for the service is excludable from gross income under § 26-51-306; (F) For services performed for an employer by a United States citizen if it is reasonable to believe when the remuneration is paid that the remuneration will be excludable from gross income under 26 U.S.C. § 911, adopted by § 26-51-310; (G) For services performed by an individual under eighteen (18) years of age delivering or distributing newspapers or shopper's news, excluding the delivery or distribution of the newspapers or shopper's news to a destination for subsequent delivery or distribution; (H) For services performed by an individual selling newspapers or magazines to consumers under an arrangement in which the newspapers or magazines are sold at a fixed price with the individual's compensation equal to the excess of the fixed price over the amount the individual pays for the newspaper or magazines, regardless of whether the individual is guaranteed a minimum amount of compensation or entitled to a credit for the unsold newspapers or magazines returned; (I) For services performed by an individual that are not in the course of the employer's trade or business if the remuneration is paid in any medium other than cash; (J) To an employee or his or her beneficiary: (i) From a trust or to a trust exempt from tax under § 26-51-308 unless the payment is rendered to an employee of the trust as remuneration for services rendered by the employee and not as a beneficiary of the trust; (ii) Under an annuity plan or to an annuity plan under 26 U.S.C. § 403(a), adopted by § 26-51-414; (iii) Under 26 U.S.C. §§ 402(h)(1) and (2), adopted by § 26-51-414, if it is reasonable to believe at the time of payment that the payment will be excluded under § 26-51-414; (iv) Under 26 U.S.C. § 408(p), adopted by § 26-51-414; or (v) Under an eligible deferred compensation plan or paid to an eligible deferred compensation plan under 26 U.S.C. § 457(b), maintained by an eligible employer under 26 U.S.C. § 457(e)(1)(A), as those sections are adopted by § 26-51-414; (K) In the form of group-term life insurance on the life of an employee; (L) To or on behalf of an employee if it is reasonable to believe at the time of payment that a corresponding deduction is allowed under § 26-51-423 with the exception of 26 U.S.C. § 274(n), adopted by § 26-51-423(b); (M) As tips in any medium other than cash; (N) As cash tips to an employee received in the course of employment in any calendar month unless the amount of the cash tips is twenty dollars ($20.00) or more; (O) For any benefit provided to an employee if it is reasonable to believe that the benefit is excluded from income under § 26-51-404(a)(4), § 26-51-404(b)(12), § 26-51-404(b)(19), or § 26-51-404(b)(20); (P) For any medical reimbursement made to an employee or for the benefit of an employee under a self-insured medical reimbursement plan under 26 U.S.C. § 105(h)(6), adopted by § 26-51-404; and (Q) For any payment made to an employee or for the benefit of an employee if it is reasonable to believe that the payment is excluded from income under 26 U.S.C. § 106(b), adopted by § 26-51-404.