SB434

Senate Bill 434 amends the Arkansas Income Tax Withholding Act of 1965 to update requirements for employers regarding the filing of annual withholding statements. Specifically, it reduces the employee threshold for mandatory electronic filing from 250 employees to 125 employees. Furthermore, the bill restricts the allowable methods for filing these statements by mandating electronic submission and removing alternatives such as magnetic media or other machine-readable formats. The Department of Finance and Administration retains the authority to grant waivers for employers who can demonstrate that electronic filing would cause an undue hardship. These changes are set to take effect for tax years beginning on or after January 1, 2024.