Arkansas Workers’ Compensation

A Complete Guide for Employers

Written by US Tax Bay

At US Tax Bay, we specialize in helping businesses stay compliant across all 50 states. If you operate in Arkansas, it’s essential to understand your workers’ compensation obligations. This guide covers Arkansas workers’ compensation requirements, exemptions, penalties for noncompliance, and how to get covered.

Arkansas Workers’ Compensation

Is Workers’ Compensation Required in Arkansas?

Yes.

Under Arkansas law, every business with at least three employees must maintain workers’ compensation insurance.

If your business operates in a high-risk industry — such as construction — you must obtain coverage even if you have fewer than three employees.

Workers’ compensation insurance protects both employees and employers in the event of workplace injuries or illnesses.

Which Workers Can Be Excluded from Coverage?

Some categories of workers are exempt from mandatory coverage requirements in Arkansas, including:

• Agricultural farm laborers

• Real estate agents

• Employees of religious, charitable, or non-profit organizations

• State employees (covered under a different system)

• Casual employees (temporary or occasional workers)

• Inmates working through prison labor programs

Careful classification of your workforce is crucial. Misclassifying employees can lead to fines, lawsuits, and loss of legal protections.

How to Buy Workers’ Compensation Insurance in Arkansas

Business owners in Arkansas can secure workers' compensation insurance through private insurance carriers.

Currently, Arkansas does not operate a state fund for workers' compensation coverage.

At US Tax Bay, we help you find reputable insurers, especially if you're in a high-risk industry where specialized policies might be necessary.

Penalties for Not Having Workers’ Compensation Insurance

If a business fails to secure proper workers’ compensation coverage:

• Fines are assessed by the state

• Loss of legal protections under the Arkansas Workers’ Compensation Commission

Without insurance, businesses can be sued directly by injured workers, exposing owners to major financial risks, settlements, and judgments.

Death Benefits for Workers’ Families

In the unfortunate event of a workplace death, eligible family members in Arkansas can receive:

• 67% of the deceased employee’s average weekly wage as ongoing death benefits

These payments offer critical financial support to families following a tragic loss.

Need Help Setting Up Your Business Payroll and Compliance?

U.S. TAX BAY makes it simple for new and growing businesses!

We handle everything you need:

✔️ Payroll Tax Registration

✔️ FEIN (Federal Employer Identification Number) Registration

✔️ Secretary of State (SOS) Business Registration

✔️ Workers' Compensation Registration Support

✔️ Full-Service Payroll Management

✔️ Unemployment Insurance Account Setup

✔️ Ongoing Compliance Services

⚡ Fast Turnarounds. Expert Support. Affordable Pricing. ⚡

📞 Get a FREE Consultation Today!

🌐 Visit: www.ustaxbay.com

📧 Email: info@ustaxbay.com

Why Partner with US Tax Bay?

At US Tax Bay, we provide businesses with:

• Full-service payroll and compliance solutions

• Guidance on workers’ compensation insurance setup

• Ongoing support for federal and state regulatory requirements

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Protect your business and stay compliant with confidence. Partner with US Tax Bay today!

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