Arizona payroll tax and registration guide

Why is this important?

To maintain compliance with state payroll tax regulations, you must provide the following information before you can use OnPay to run payroll:

State Employer Identification Number and state/local tax IDs
Tax rates - State tax offices set these rates based on the type, age, and size of your business
TPA and power of attorney - Most tax offices require this before we can submit quarterly wage reports and deposits on your behalf

This information must be provided and maintained by you in order for OnPay to accurately file and deposit tax payments for your company. OnPay is not responsible for any penalties or interest that incur due to missing or incorrect company tax information.

Each state has its own requirements, so if you pay employees in more than one state, you’ll find separate tax guides for each state.

Let Middesk handle your state tax registrations

Want help registering your business with state agencies? We've partnered with Middesk to make it simple for you to stay compliant in your state — and every state — when hiring employees.

Register with state agencies and get the tax IDs you need within minutes
Manage all your government accounts in one place using Middesk's intuitive platform
Stay compliant by managing agency mail and notices from your Middesk dashboard
Foreign Qualify with the Secretary of State to create payroll tax accounts

Learn more about Middesk

See what information you need to provide OnPay, and what taxes and filings OnPay handles for Arizona Employers.

Information OnPay needs from you

Use this checklist to make sure you’ve covered everything required to set up your account as an Arizona employer, so OnPay can accurately file and pay taxes on your behalf:

All Arizona employers	What is this?
Make sure your business is registered with the Arizona Department of Revenue	Registers your business to file and pay taxes in Arizona More info
Make sure your business is registered with the Arizona Department of Economic Security	Registers your business to pay required unemployment insurance in Arizona More info
Provide OnPay with your Arizona Tax ID and deposit schedule	The employer identification number assigned by the Arizona Department of Revenue (the same as your FEIN) More info
Provide OnPay with your Arizona Department of Economic Security ID	A number unique to your account with the Arizona Department of Economic Security More info
Provide OnPay with your Arizona Unemployment (SUI) Rate	A tax rate you receive annually from the Arizona Department of Economic Security More info

Taxes and filings OnPay handles for Arizona Employers

Withholding Tax

Form W-2	Wage and Tax Statement	- Annual
Form A1-APR	Annual Payment Withholding Tax Return	- Annual
Form A1-R	Withholding Reconciliation Tax Return	- Annual
Form A1-T	Withholding Transmittal of Wage and Tax Statements	- Annual
Form A1-WP	Payment of AZ Income Tax Withholding	- Monthly
Form A1-QRT	Quarterly Withholding Tax Return	- Quarterly

Unemployment Insurance

Form UC-018	Unemployment Tax and Wage Report	- Quarterly
Form UC-020	Unemployment Tax and Wage Report (Continuation)	- Quarterly
New Hire Report (Filing)	Report of New Hires	- As required

Where you can find the tax account numbers needed

If you are an existing employer who has previously run payroll in Arizona, you likely already have the IDs and online accounts needed for OnPay to process your tax filings.

If you are a new employer in Arizona, you will need to register your business with the Arizona Department of Revenue and Arizona Department of Economic Security. This must be completed for OnPay to be able to file and pay your Arizona taxes.

Arizona Tax ID Number

Existing Arizona Employer:

If you are registered with the Arizona Department of Revenue, your Arizona Tax ID number is the same as your Federal Employer Identification Number (FEIN).
If you cannot locate this number, please call the Department of Revenue at (800) 843-7196.

New Arizona Employer:

Visit the AZ Taxes website and complete the registration
This will complete your application for an Arizona TPT License, which is used to apply for transaction privilege tax, use tax, and Employer Withholding and Unemployment Insurance
The form is processed by both the Arizona Department of Revenue and Arizona Department of Economic Security, so you only have to fill out one application
The online registration process can take 2-3 weeks

Unemployment Account Number and Tax Rate