Arizona Payroll

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Arizona Payroll Taxes, State and Income Taxes

Get your Arizona State Tax ID Number

Click Here to Obtain State Tax ID

(note: Arizona is a "Joint Application" State. One application for one ID number that satisfies SIT and SUI requirements)

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 Wage and Hour Laws

Arizona employers must pay at least $12.15 an hour to covered employees. The minimum wage is adjusted annually for inflation. Employers can pay tipped employees cash wages of at least $9.15 an hour. Arizona employers can average tips over the course of a payroll period.

Arizona Payroll for Employers

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 ($000)                              7,000

New Employer Rate (% Taxable Wages)        2.0
Employee Tax Rate ( % Taxable Wages)       None

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 requires employers to allow employees sufficient leave time to vote. The law does not specify the exact amount of leave time that must be granted. Unless they have a different agreement with employees, employers can grant time off at the beginning or end of a regular work shift, whichever gives employees the most time for voting and the least time away from work.

Arizona State Tax Resources

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.

This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.

Accurate as of January 2021