Arizona payroll tax and registration guide

  • Updated

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

Existing Arizona Employer: 

  • You can find your Unemployment Account Number and Tax Rate on the annual Determination of Unemployment Tax Rate letter received from the Arizona Department of Economic Security.
  • You can also find this information on any notices received from the Arizona Department of Economic Security.
  • New employers have a rate of 2%, with a wage base of $8,000.

New Arizona Employer: Register with the Arizona Department of Economic Security

  • You can complete your registration with both the Department of Revenue and the Department of Economic Security when you complete your application on the AZ Taxes website.

 

Paying employees in other states?

If you operate in multiple states or just have employees working from home across a state line, it's important to file the correct state forms for those workers. See what forms we file in the states where you pay employees.

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