SB503

Senate Bill 503 amends the Arkansas Income Tax Withholding Act of 1965 to modernize and tighten filing requirements for employers. The bill lowers the employee threshold for mandatory electronic filing of annual withholding statements from 125 employees to 75 employees. Additionally, it mandates the electronic filing of withholding returns for any employer required to file annual withholding statements electronically. The bill also specifies that third-party entities providing withholding tax reporting services on behalf of other employers must file those returns electronically if the employer is subject to the new electronic filing mandate. To prevent administrative burdens, the Secretary of the Department of Finance and Administration retains the authority to grant waivers for employers who can demonstrate that electronic filing causes an undue hardship.