Updated September 8, 2023
This article will cover:
- What information OnPay needs from you
- What state and local taxes and filings OnPay handles for Arizona employers
- Where you can find the tax account numbers needed
- Paying employees in other states?
Why is this important?
For employers who pay employees in Arizona, use this guide to learn what’s required to start running payroll while keeping compliant with state payroll tax regulations. Without this information, OnPay will be unable to file or deposit any Arizona tax payments for your company. Any penalties and interest that accrue from missed tax payments will be your company’s responsibility.
What information OnPay needs from you
Use this checklist to make sure you’ve covered everything required to set up your account as a Arizona employer so OnPay can accurately file and pay taxes on your behalf:
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✔ |
To do: |
What is this? |
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Make sure your business is registered with the Arizona Department of Revenue |
Registers your business to file and pay taxes in Arizona |
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Make sure your business is registered with the Arizona Department of Economic Security |
Registers your business to pay required unemployment insurance in Arizona |
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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) |
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Provide OnPay with your Arizona Department of Economic Security ID |
A number unique to your account with the Arizona Department of Economic Security |
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Provide OnPay with your Arizona Unemployment (SUI) Rate |
A tax rate you receive annually from the Arizona Department of Economic Security |
What state and local taxes and filings OnPay handles for Arizona employers
OnPay handles the filing of all state and local taxes for businesses in Arizona, including:
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Type of Tax |
Form ID |
Form Name |
Frequency |
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Withholding |
W-2 |
Wage and Tax Statement |
Annual |
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A1-APR |
Annual Payment Withholding Tax Return |
Annual |
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A1-R |
Withholding Reconciliation Tax Return |
Annual |
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A1-T |
Withholding Transmittal of Wage and Tax Statements |
Annual |
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A1-WP |
Payment of AZ Income Tax Withholding |
Monthly |
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A1-QRT |
Quarterly Withholding Tax Return |
Quarterly |
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Unemployment |
UC-018 |
Unemployment Tax and Wage Report |
Quarterly |
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UC-020 |
Unemployment Tax and Wage Report (Continuation) |
Quarterly |
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Other |
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: Register with the Arizona Department of Revenue
- To register online, 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.