06/02/2026
Just because something gets a tax break at the federal level doesn't mean Arkansas treats it the same way.
Federal tax changes for eligible tip income and overtime pay may lower federal taxable income, but Arkansas may not treat those amounts the same way. That’s where business owners can get caught off guard. ⚠️
If you own a restaurant, retail business, or any business with tipped employees or frequent overtime, now's a great time to review your payroll setup and withholding. Waiting until next year's tax season could leave you with confusion, underpayment issues, or a surprise balance due. 💸
The tip here? Always check federal and state tax treatment separately before assuming the rules match. ✅