Employer's Obligations for Arizona State Payroll Taxes- Updated on Feb 15, 2023 - 11:00 AM by 123PayStubs Team
Use 123PayStubs to know your tax liabilities for the pay period and also to generate the pay stubs for your hourly or salaried employees and contractors in Arizona.
All you need to do is to enter the basic details like company information, employee, and earnings information to get started. Our Arizona paystub generator will do all the math for you and generate pay stub with accurate calculations.
Also, 123PayStubs provides information about the payroll requirements for the state of Arizona.
Calculate Arizona State Payroll Taxes and Generate Paystubs Instantly
What Employers should know about the Arizona State Payroll Taxes?
123PayStubs will be suitable for those who are doing payroll on their own. As, 123PayStubs covers all the information required for Arizona state withholding taxes and provides you with the exact details to keep payroll under your control.
Apart from the federal withholding, employers in Arizona are also responsible for certain state payroll tax requirements which are listed below.
Arizona State Minimum Wage Requirements
The state of Arizona has set $12 per hour as the minimum wage rate for employees and $9 per hour for tipped employees.
Employers in Arizona have to meet the minimum wage requirements as required by the Arizona state labor law apart from the Federal requirement.
Arizona State New Hire Reporting
All employers are required to report new hires or rehires with the state agency within 20 days of their joining.
Employers in Arizona can report new hires either online or can mail the new hire reports to the Arizona Reporting Center. Employers can report through New Hire Reporting Form or Form W-4.
Filing New Hire Report Form Online
New hire report can be filed online using the Arizona state e-services for business. Visit https://newhire-reporting.com/az-newhire/empreg.aspx to file your Arizona new hire
Mailing New Hire report DE 34 Form
Mail the completed new hire report form to the following address:
PO Box 142901
Austin TX 78714
If you want to submit Form W-4 as a new hire report, make sure that each form has the employer name, Federal Employer Identification Number (FEIN), and address written at the top of each form.
Arizona State Withholding Tax
- The employer should get the Form A-4 from their employees (Employee’s Arizona Withholding Election) to determine the taxable income of their employees apart from the federal Form W-4.
- Arizona has reciprocal taxation agreements with California, Indiana, Oregon, and Virginia. Employees who work in Arizona and reside in any of these states can request an exemption from income tax withholding by filing Form WEC, Withholding Exemption Certificate.
- Also, residents of Arizona who are employed outside the state must submit Form A-4V (Voluntary Withholding Request).
- Form A-4C (Request for Reduced Withholding to Designate for Tax Credits) can be submitted by employees if they wish to adjust their taxes.
- There is no supplemental rate of withholding for Arizona
Arizona State Unemployment Insurance TAX (SUI)
- Arizona SUTA wage base limit for 2020: $7,000
- Arizona SUTA tax rates for 2020: 0.5% to 12.85%
- Arizona SUTA tax rates for new employers: 2%
Other Arizona State Payroll Requirements
- Arizona Termination Pay: If an employee is fired, all wages owed to the employee must be paid within seven working days of their last day or the end of the next regular pay period (whichever is sooner).
- Withholding for child support can be paid online or make check payable to: Support Payment Clearinghouse
And send payments to:
PO Box 52107
Phoenix, AZ 85072
When are Arizona State Payroll Tax Payments due?
The state of Arizona requires all employers to remit unemployment insurance at the end of the quarter, and state income taxes based on the amount of taxes withheld.
Say, if the withholding average is less than $200, deposits can be made annually, else quarterly or on the next business day.
Employers must have registered their EIN numbers with the Arizona Department of Revenue to file the withholdings.
Arizona State Deposit Requirement
All the Arizona payroll taxes can be deposited electronically using Arizona's AZtax.gov application.
Employers can pay by EFT if they owe
- More than $5,000 beginning from and after Dec 31, 2019, through Dec 31, 2020;
- More than $500 beginning from and after Dec 31, 2020.
Employers who are required to pay through EFT if they fail to do so, they will be subjected to a penalty of 5% of the amount of payment made.
Semi-Weekly Federal Deposit Requirement
- This schedule is applicable if the total federal tax reported by the employer is more than $50,000.
- Also, if the combined average for all quarters is more than $1,500, employers must remit through a semiweekly deposit schedule.
- The payment due date falls on the following Wednesday if wages are paid on Wednesday, Thursday, or Friday.
- Similarly, the payment due date is on the following Friday if wages paid are on the remaining days.
If the due date falls on a Saturday, Sunday, or a legal holiday, the withholding payment must be made on the next banking day.
Next-Day Federal Deposit Requirement
- Use the next business day deposit schedule if the employer withholds taxes of more than $100,000 on any day during a federal deposit period.
- Here, the deposit should be made by the close of the next business day.
If the due date falls on a Saturday, Sunday, or a legal holiday, the payment must be made on the next banking day.
A1-WP Withholding Deposit Coupons
Employers who make more than one payment per quarter to the state must file Form A1-WP to transmit the payments to the Department of Revenue.
Employers are not required to file this form if no payment is made for a quarter.
Quarterly Arizona Payroll Tax Filings
Employers are required to file Form A1-QRT and UC-018 each quarter.
- Form A1-QRT: File this form to reconcile the Arizona withholding payments made for the calendar quarter. An employer must file this form even if the withholding is zero for the quarter.
- Form UC-018: Use this form to file unemployment taxes.
- The due dates to file quarterly forms are:
- April 30, for the 1st quarter,
- July 31, for the 2nd quarter,
- October 31, for the 3rd quarter, and
- January 31, for the 4th quarter.
When is the Arizona Form A1-QRT, A1-R, and UC-018 due?
All the Arizona payroll taxes must be deposited electronically to the Employment Development Department (EDD).
Form A1-QRT: It is due on the last day of the month following the end of the quarter.
- For Quarter 1, the forms are due by April 30
- For Quarter 2, the forms are due by July 31
- For Quarter 3, the forms are due by October 31
- For Quarter 4, the forms are due by January 31
Form A1-R: It is an Annual Reconciliation Tax Return that is due annually by February 28th of each year. Filing can be completed online using Arizona’s AZtax.gov application.
Form UC-018: It is an Unemployment Tax and Wage Report that is due on the last day of the month following the end of the quarter (April 30, July 31, October 31, and January 31).
Filings can be made using the Department of Economic Security's online Tax and Wage System.
If the deadline falls on a weekend or any legal holiday, then the forms are due by the next business day.
Annual Arizona Payroll Tax Filings
The state of Arizona requires employers who withhold taxes on an annual basis to file Form A1-APR. This form is due on January 31 each year.
Also, employers are required to submit forms W-2, along with 1099 with the Arizona Form A1-APR.
NOTE: If January 31 falls on a Saturday, Sunday, or legal holiday, the return must be filed by the next business day.
123PayStubs is more than a paystub generator.
No matter which part of Arizona your business operates in, our Arizona paystub generator will let you create pay stubs for your employees and contractors with accurate tax calculations including all cities like Phoenix, Tucson, Mesa. You only have to provide a few basic information such as company, employee and salary details and our pay stub generator will calculate all the applicable taxes swiftly based on the information provided. It will take less than 2 minutes to generate a pay stub. Employees and contractors in Arizona can use the pay stubs as proof of income.
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