If you are an employer in Arizona who has recently hired an employee, you will need to register for payroll tax with the Arizona Department of Revenue. This registration process ensures that you are in compliance with state tax laws and can properly withhold and remit taxes on behalf of your employees.
How Arizona Payroll Registration Works
There are 3 payroll tax setup tasks you may need to complete in Arizona to get your new hire on payroll for the first time. You can follow the guide below to help you get registered directly with the Arizona agencies or use Mosey to do it.
Arizona Unemployment Insurance Setup for Corporation, LLP, LLC
Generally, employers are required to setup Unemployment Insurance tax if they paid $1,500 or more in wages during a calendar quarter or employed at least one worker for some part of a day in each of 20 different weeks in a calendar year. Employers may also be required to pay Unemployment Insurance tax if they are required to pay Federal Unemployment Tax because they employed individuals in any other state or for any other reason. Note: When registering a new business for Unemployment Insurance you can also register for Income Tax Withholding at the same time.
- Register for an AZTaxes Account
If you haven't already done so, create an AZTaxes account.
- Register for Unemployment Insurance Tax
Log in to AZTaxes.gov to register for Unemployment Insurance tax.
Arizona Withholding Tax Setup for Corporation, LLC, LLP
If you have employees in Arizona, you must register to collect and remit Personal Income Tax Withholdings to the state with the Joint Tax Application for a TPT License (Form JT-1). Note: When registering a new business for Personal Income Tax Withholding, you can also register for Unemployment Insurance at the same time.
- Register for an AZTaxes Account
Create an account on AZTaxes.gov.
- Register for Personal Income Tax Withholdings
Log in to AZTaxes.gov to register for Personal Income Tax Withholdings.
Arizona Unemployment Compensation Setup for Corporation
If your 501(c)(3) nonprofit organization: (a) Pays wages of at least $1,500 during a calendar quarter or (b) Employs four or more people in Arizona for some part of a day in each of 20 different weeks in a calendar year, you must register for an Unemployment Insurance Tax Account Number with the Arizona Department of Economic Security. As a non-profit, you will have the choice to either pay unemployment contributions on taxable wages each quarter or elect to reimburse the Arizona Department of Economic Security fund for benefits paid to terminated employees. Note: If you already have a withholding or transaction privilege tax account, you will use the same Arizona Joint Tax Application Form (JT-1) to apply for unemployment insurance.
- Complete Arizona Joint Tax Application Form (JT-1)
Download and complete the Arizona Joint Tax Application Form (JT-1).
- Submit Completed Arizona Joint Tax Application Form
Email your completed Arizona Joint Tax Application Form (JT-1) to the Department of Economic Security, Employer Registration Unit.
- Elect Reimbursable Payment Method
After applying, the Department of Economic Security will mail you a Determination of Unemployment Insurance Liability packet that will include a form to elect the reimbursable payment method. If you choose this method, you need to fill out and return the form within 30 days of the notification date specified in the packet.
- Configure Payroll with Unemployment Insurance Information
Add your Unemployment Insurance Tax Account Number and tax rate (or reimbursable status) to your payroll provider.
