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 employers must pay at least $7.25 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 $3.00 an hour must equal the minimum wage for all hours worked. Arizona employers can average tips over the course of a payroll period.

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.

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 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.