Knowledge Base

How Do I Update My Arkansas Tax Tables?

The Arkansas state tax table formats have changed slightly for the 2020 tax year. There is now a configurable Net Taxable Income limit that has changed from prior years. This change takes effect March 1, 2020.

Where do I find the tax tables?

For AR tax tables, you will need the current "Withholding Formula" document from the AR Department of Revenue.

Which tables do I use?

Use the "Formula Method." Figure 1 shows an excerpt from that document.

Note that the figures shown in this document are for demonstration purposes only, and may not be current. Please consult the current publication for the most up-to-date information. Though the figures change periodically, the method of calculation should remain the same. If the calculation method has changed for this state please notify the webmaster.

Figure 1 - 2020 Formula Method

How to setup/update the tables in PowerChurch Plus

To setup/update PowerChurch Plus with the state tax table shown in Figure 1 above, select the Accounting menu, Payroll, Setup, then Maintain Tax Tables. Only one table will need to be created.

Click Add to enter a new table, or use the Find/Locate buttons to select an existing AR tax table to update. When adding a new table, you will be prompted for the type of tax table you're adding. Select State: Arkansas. For each table, enter the following information:

  • Description: Enter a unique name to identify the tax table (for example, "AR State Tax").
  • Tax type: The type of tax in which this table applies. In this instance, select State Tax.
  • Standard deduction: Enter the amount for the standard deduction. This is from step 2 of the "Formula Method" (see Figure 1).
  • Personal tax credit: Enter the amount for one personal tax credit. This figure is found in step 4 of the "Formula Method" (see Figure 1).
  • Round tax to the nearest whole dollar: If required, check this box to round the calculated tax amount to the nearest whole dollar.
  • Midrange Net Taxable Income limit: Complete the statement from the Withholding Formula document - "If Net Taxable Income is below X, look up the income at the $50 range (midrange of $100)."
  • Annual Rate Table: Click the Annual Rate Table tab. From the rate table shown in step 3 (Figure 1), enter the figures under the "But not over" column, followed by the tax rate percentage and minus adjustment for each bracket.

When you are done, the screen should look like this:

Figure 2a - AR State Tax Table (Deduction and Exemption Information)

Figure 2b - AR State Tax Table (Annual Rate Table)

This article applies to the following PowerChurch versions:
PCPlus V 11/11.1, PCPlus V 11.5/11.55, PCPlus V12/12.2, PowerChurch Online

state tax table, tax table, taxes

Created: 12/03/2009
Last updated: 07/25/2021