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Arizona Payroll

Did you know that Arizona has reciprocal state taxation agreements with several other states? That most Arizona seasonal workers are exempt from state income tax withholding?

Arizona Compensation

Arizona employers must pay at least $7.35 an hour to covered employees. The minimum wage is adjusted annually for inflation. Employers can pay tipped employees cash wages of at least $3.00 an hour. Tips plus $4.35 an hour must equal the minimum wage for all hours worked. Arizona employers can average tips over the course of a payroll period.

Arizona Payroll

Arizona employers must pay wages at least twice in a calendar month. Payments must be no longer than 16 days apart and within five working days after the pay period ends. Overtime pay or exception pay must be paid no later than 15 days after it is earned.

Arizona Unemployment:
Taxable Wage Base ($000s)	7,000
New Employer Rate (% Taxable Wages)	2.0
Employee Tax Rate (% Taxable Wages)	None
Period Effective	Calendar Year 2011

Arizona Payroll Links

Arizona Department of Revenue >> Office of Tax Policy 1600 West Monroe Phoenix, Arizona 85007-2650 602.255.2060	Arizona Department of Economic Security >> Employment Administration PO Box 29225 Phoenix, Arizona 85038-9225 877.00.2722

Arizona Laws >> Access Revised Statues from the Arizona State Legislature online site.	Arizona Industrial Commission >>

Arizona Income Tax Withholding

The Arizona Tax Act of 1987 requires employers to withhold state income tax from the wages of residents and non-residents and to remit the amounts withheld to the Arizona Department of Revenue.

Arizona has reciprocal taxation agreements with California, the District of Columbia, Indiana, Oregon and Virginia. Residents of any of these states who work in Arizona can request an exemption from income tax withholding in Arizona by filing Form WEC, Withholding Exemption Certificate.

Part-time or seasonal agricultural workers are exempt unless the workers' principal duties involve operating mechanically driven devices. However, persons engaged in other agriculture-related employment, which is not seasonal, are subject to withholding.

Arizona Benefits

Arizona Voting Rights:
Employer Right to Schedule Voting Hours	Yes
Pay Deduction for Voting Time Leave	Prohibited

Arizona law does not specify the exact amount of leave time that must be granted. Employees must have a total of three hours while the polls are open to vote. Employers must grant leave only if the employees do not have three hours outside of their shifts while the polls are open. The employer specifies the hours employees may be absent. Employers may not impose a penalty or make a deduction from employees' wages because of their absence to vote.

Arizona Payroll Calculator

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Follow the link to learn more about calculating payroll tax where there are definitions and further explanation of how to calculate Arizona payroll taxes. If you are tired of doing it yourself we encourage you to call 877.954.7873 to speak with a payroll expert or just get a free personalized payroll service quote.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

SurePayroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.