26-51-908. Employer's return and payment of taxes withheld — Definition.

26-51-908. Employer's return and payment of taxes withheld — Definition. (a)(1) Every employer required to deduct and withhold from wages under this subchapter shall file a withholding return on an annual basis as prescribed by the Secretary of the Department of Finance and Administration and annually pay over to the secretary the full amount required to be deducted and withheld from the wages of the employees if the amount is less than one thousand dollars ($1,000) per year. (2) Every employer required to deduct and withhold from wages under this subchapter shall file a withholding return on a monthly basis as prescribed by the secretary and pay over on a monthly basis to the secretary the full amount required to be deducted and withheld from the wages of the employees if the amount is one thousand dollars ($1,000) or more per year. (3) However, the secretary may provide by rule that every such employer shall on or before the fifteenth day of each month pay over to the secretary or a depository designated by the secretary the amount required to be deducted and withheld by the employer for the preceding month if the amount is one hundred dollars ($100) or more. (b)(1) Notwithstanding any other provision of this section, all transient employers shall make return and pay over to the secretary, on a monthly basis, the full amounts required to be deducted and withheld from the wages by the transient employer for the calendar month. (2) The returns and payments to the secretary by transient employers shall be made on or before the last day of the month following the month for which the amounts were deducted and withheld from the wages of the transient employer's employees. (c)(1) Notwithstanding any other provision of this section, all employers engaged in any business which is seasonal shall make return and pay over to the secretary on a monthly basis the amounts required to be deducted and withheld from the wages by the employer for the calendar month. (2) Returns and payments to the secretary by employers engaged in seasonal business shall be made on or before the last day of the month following the month for which those amounts were deducted and withheld from the wages of the employer's employees. (d) When the secretary has justifiable reason to believe that the collection of funds required to be withheld by any employer as provided in this subchapter is in jeopardy, the secretary may require the employer to file a return and pay the amounts required to be withheld at any time. (e) Every employer who fails to withhold or pay to the secretary any sums required by this subchapter to be withheld and paid shall be personally and individually liable for the sums except as provided in § 26-51-916. (f) Any sum withheld in accordance with the provisions of this subchapter shall be deemed to be held in trust for the State of Arkansas and shall be recorded by the employer in a ledger account so as to clearly indicate the amount of tax withheld and that the amount is the property of the State of Arkansas. (g)(1) When an employer has become liable to an annual return of withholding, the employer must continue to file an annual report, even though no tax has been withheld, until such time as the employer notifies the secretary, in writing, that the employer no longer has employees or that the employer is no longer liable for an annual return. (2) When an employer has become liable to a monthly return of withholding, the employer must continue to file a monthly report, even though no tax has been withheld until such time as the employer notifies the secretary, in writing, that the employer no longer has employees or that the employer is no longer liable for monthly returns. (h)(1) For any withholding tax reporting period, a company or any other business enterprise which provides the service of reporting and remitting withholding tax on the wages paid to Arkansas employees by other employers shall remit all such withholding taxes to the secretary by electronic funds transfer, as more particularly described in § 26-19-105. (2) However, a company or business which provides tax reporting and remitting services shall not be required to remit withholding taxes by electronic funds transfer if the company or business provides those services for fewer than one hundred (100) Arkansas employers. (3) As used in this subsection, “Arkansas employer” means any employer required by Arkansas law to withhold, report, and remit Arkansas income tax on the wages, salary, or other compensation paid to its employees within this state.