AR · Cost to hire 2026
How much does it cost to hire an employee in Arkansas?
The real first-year cost of a W-2 hire in Arkansas is the ongoing fully-loaded payroll plus the one-time spend to recruit, onboard, and equip the person. A $75,000 hire runs about $109,220 in year one.
In Arkansas, the year-one cost to hire is the sum of ongoing fully-loaded payroll and the one-time spend it takes to get a new employee productive. On the payroll side, a new employer pays unemployment insurance at 2.0% on the first $7,000 of wages, a maximum of $140 per worker per year and among the lowest dollar exposures nationally, layered on top of the 7.65% employer FICA share and federal FUTA. Arkansas taxes wage income, but employees bear that withholding, so it does not raise your direct cost, and there is no separate employer paid-leave program to fund. The one-time costs are what separate the first year from steady state: recruiting and advertising, onboarding and training time, and equipment and workspace setup, which HiringMath models at about $8,500, plus roughly $1,500 a year in software. From the Bentonville retail and logistics corridor to Little Rock healthcare and northwest Arkansas poultry processing, those setup costs recur with each new seat, so building them into the offer is how you price a hire accurately.
Estimate a Arkansas hire
Pre-filled with Arkansas's 2% new-employer SUI rate. Adjust salary, benefits, and one-time costs to fit your hire.
First-year cost of a $75,000 hire in Arkansas
| Recurring (annual) | |
| Base salary | $75,000 |
| Employer payroll taxes | $5,920 |
| Workers' comp | $750 |
| Benefits | $10,050 |
| Overhead | $7,500 |
| Software & toolsrecurs yearly | $1,500 |
| One-time (year one) | |
| Recruiting | $4,000 |
| Onboarding & training | $2,000 |
| Equipment & setup | $2,500 |
| Ongoing annual cost (year 2+) | $100,720 |
| Total first-year cost | $109,220 |
First-year cost by salary in Arkansas
| Base salary | First-year total |
|---|---|
| $50,000 | $78,807 |
| $75,000 | $109,220 |
| $100,000 | $139,632 |
What drives the cost in Arkansas
Arkansas's new-employer SUI rate is 2% on the first $7,000 of wages, a maximum of $140 per worker per year (below the national average of 2.07%). That sits on top of 7.65% employer FICA and 0.6% FUTA. Arkansas taxes wage income, which the employee pays, so it adds administration but not direct employer cost.
Compare and dig deeper
Weighing an employee against a contractor? See the Arkansas W-2 vs 1099 comparison for the breakeven contract rate. Compare neighboring markets, including Arizona, Massachusetts, Connecticut, Louisiana, or read how much it costs to hire an employee nationally.
Cost-to-hire FAQ for Arkansas
- How much does it cost to hire an employee in Arkansas?
- Budget for ongoing payroll plus one-time setup. Payroll adds the 7.65% employer FICA share, federal FUTA, and Arkansas SUI at 2.0% on the first $7,000 of wages (up to $140 per worker, one of the lowest nationally). Year one also carries about $8,500 in one-time recruiting, onboarding, and equipment costs and roughly $1,500 a year in software.
- What one-time costs come with a new hire in Arkansas?
- One-time costs include recruiting and advertising, onboarding and training time, and equipment and workspace setup, which HiringMath defaults to about $8,500. Because Arkansas SUI is capped at just $140 per worker, these one-time outlays, not state taxes, are what make the first-year cost meaningfully higher than the ongoing annual cost.
- What is the ongoing annual cost after year one in Arkansas?
- Once setup costs are spent, the recurring annual cost is salary plus the 7.65% employer FICA share, federal FUTA, Arkansas SUI (2.0% on the first $7,000, up to $140), any benefits, and about $1,500 in software. With no employer paid-leave tax and a low SUI cap, Arkansas keeps the ongoing per-worker tax burden small.