All states · Updated for 2026
How to pay a nanny in Arkansas
Everything a Arkansas family has to do to pay a nanny, housekeeper or caregiver legally: the taxes, the registrations, the forms, and the deadlines. CareTab does the math and reminds you; you keep paying them the way you already do.
The short version
- Federal: withhold 7.65% Social Security and Medicare from their pay and match it; pay FUTA (0.6% of the first $7,000.00); file Schedule H with your 1040; give them a W-2 by Jan 31.
- Arkansas unemployment tax: register with Arkansas Division of Workforce Services after $1,000 or more in cash wages for domestic service in a calendar quarter (a.c.a. § 11-10-209; threshold not restated on the dws page fetched); new employers pay 2.00% on the first $7,000.00 of wages; file DWS-ARK-209B Employer's Quarterly Contribution and Wage Report (filed via Tax21) quarterly.
- Arkansas income tax: withholding is voluntary for household employers (form AR4EC).
- New hire report: within 20 days of their start date.
- Minimum wage: $11.00/hour. Overtime: 1.5× over 40 h/week for live-out nannies.
- Paid sick leave: not mandated by the state.
- Workers' compensation: The Arkansas Workers' Compensation Law does not apply to employment of domestic help (AWCC Basic Facts brochure); businesses with two or fewer employees are also outside the law. Voluntary coverage available.
Step by step
- Get an EIN from the IRS (free, online, 10 minutes).
- Have your nanny complete Form I-9 and, if they want federal income tax withheld, a W-4 and AR4EC.
- File the Arkansas new-hire report within 20 days at the state site.
- Register with Arkansas Division of Workforce Services once you cross $1,000 or more in cash wages for domestic service in a calendar quarter (a.c.a. § 11-10-209; threshold not restated on the dws page fetched) (registration).
- Each payday: track hours, pay at least minimum wage and overtime, withhold 7.65%, give a pay stub.
- Each quarter: file DWS-ARK-209B Employer's Quarterly Contribution and Wage Report (filed via Tax21). Due the last day of the month following each quarter (Apr 30, Jul 31, Oct 31, Jan 31). 2026 new employer rate 2.0% (includes the stabilization/administrative assessment) on the first $7,000; form name and due dates taken from prior practice, not re-verified on the DWS page.
- January: W-2 to your nanny, W-2/W-3 to the SSA, AR3MAR (with W-2s) to the state. April: Schedule H with your 1040.
Run your numbers
Use the free Arkansas nanny tax calculator: take-home pay, what you withhold, and your total cost including employer taxes.
Frequently asked
Do I have to pay nanny taxes in Arkansas?
Yes. Once you pay a household employee $3,000.00 or more in a year you owe Social Security and Medicare (7.65% withheld from your nanny and 7.65% from you), and FUTA once you pay $1,000.00 in any quarter. Arkansas unemployment tax applies after $1,000 or more in cash wages for domestic service in a calendar quarter (a.c.a. § 11-10-209; threshold not restated on the dws page fetched).
Do I withhold Arkansas income tax from my nanny?
Arkansas does not require household employers to withhold state income tax; you can withhold voluntarily using AR4EC if your nanny asks.
What forms do I file in Arkansas?
DWS-ARK-209B Employer's Quarterly Contribution and Wage Report (filed via Tax21) quarterly with Arkansas Division of Workforce Services, AR3MAR (with W-2s) annually, a W-2 for your nanny and W-3 to the SSA by Jan 31, and Schedule H with your federal return.
Does my nanny get overtime in Arkansas?
Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are exempt from overtime in Arkansas. The Arkansas Minimum Wage Act ($11.00) covers employers with 4 or more employees; a household employing fewer than 4 workers is covered by the federal FLSA ($7.25) instead, but the state rate is shown as the conservative figure. Federal overtime rules apply (live-in domestic workers exempt from overtime).
What is the minimum wage for a nanny in Arkansas?
$11.00 per hour in 2026.
Pay your Arkansas nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with DWS-ARK-209B Employer's Quarterly Contribution and Wage Report (filed via Tax21) pre-filled. 14-day free trial, no card needed.
Start free trialSources: Arkansas DFA Withholding Tax Formula Method, Tax Year 2026 (revised, posted 05/29/2026 after HB 1001 lowered the top rate to 3.7%); Arkansas DFA Withholding Tax Formula Method, Tax Year 2026 (original, effective 01/01/2026, 3.9% top rate); Arkansas DFA – Withholding Tax Forms and Instructions (AR4EC 2026, tables, low-income tables); Arkansas Division of Workforce Services – Employer UI Information (2026 wage base $7,000, new employer rate 2.0%); Arkansas Department of Labor and Licensing – Minimum Wage and Overtime ($11.00; employers with 4+ employees); Arkansas Workers' Compensation Commission – Basic Facts Q&A brochure (domestic help excluded). Rules for 2026 are provisional. General information, not tax or legal advice.