How Arkansas withholds on a bonus
Arkansas lets employers withhold a flat 3.9% on supplemental wages paid separately, which is the state's top rate and the rate that applies to nearly all wage income above $4,600 of taxable income. On a $10,000 bonus the percentage method withholds $2,200 federal, $620 Social Security, $145 Medicare and $390 Arkansas, leaving $6,645. The state has cut its top rate five times since 2018, from 6.9% to 3.9%, and the supplemental rate has fallen with it.
Under the aggregate method, Arkansas withholding is computed on the bonus plus a regular paycheck under the state's tables; because 3.9% already covers almost everything, the state figure barely moves, while the federal figure rises to about $2,700 for a $60,000 earner paid every two weeks. Arkansas has no local income taxes, so nothing else comes out of a bonus.
What the withholding means for your Arkansas return
Arkansas's low-income tax table, which applies to net incomes of about $92,300 or less, means a bonus that keeps a filer under that line is taxed at slightly less than 3.9% on the return, so the flat withholding is usually a little high and a small amount returns. The federal side is the larger source of any refund: a $60,000 single filer's marginal federal rate is 12% to 22% against the 22% withheld. The Arkansas paycheck calculator shows the marginal rates for any salary. Allowances claimed on Arkansas Form AR4EC do not reduce the flat 3.9% supplemental withholding; they apply only when a bonus is combined with regular wages under the aggregate method.