Did You Know?
Arcelor Pine Bluff, Inc., is a leading U.S. producer of steel cord for passenger and truck tires and wire for industrial hoses. (The typical daily wire production at the Pine Bluff plant is enough to circle the globe four times.)
Unemployment Insurance Tax
Every business in Arkansas pays an unemployment insurance tax. A business with no previous employment record in Arkansas is taxed at 3.3 percent on the first $9,000 of each employee's earnings until an employment record is established, usually within three to five years. The rate generally decreases to an average of 2.0 percent after an employment history is established.
Each firm's employment record is determined primarily by its taxable payroll and history of employee involuntary termination. The tax is determined by past experience and the amount of the reserve-ratio. The reserve-ratio is the excess of contributions paid over benefits charged as related to payroll. The higher the reserve-ratio, the lower the tax rate. Currently, the minimum rate is 0.5 percent and the maximum is 6.4 percent.