Arizona employer tax information
About Arizona employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in Arizona, you must be a registered employer with the Arizona Department of Revenue and the Department of Economic Security, and provide us with your Arizona Unemployment Tax Account Number and your Unemployment Insurance (UI) rate.
You must be registered as an employer to have an Arizona Withholding Account Number and an Arizona Unemployment Tax Account Number. These numbers are required so we can make Arizona state tax payments and filings on your behalf.
If you have already registered but have not received your Unemployment Tax Account Number and it has been more than one month since you registered, contact the Employer Registration Unit at 602-771-6602.
The Arizona Department of Economic Security typically requires employers to file and pay unemployment taxes starting in the quarter that wages are first paid. If you become liable for unemployment taxes and register an account in a later quarter, it may be necessary to file these taxes retroactively. Visit the Arizona Department of Economy Security website or contact the Arizona Department of Economic Security directly to determine your requirements and ensure any outstanding tax filings are completed promptly to avoid penalties.
Arizona payroll tax
Square Payroll processes the following forms per the frequency below to the listed state agencies:
Arizona Department of Revenue (DOR)
- Payment of Arizona Income Tax Withheld (A1-WP): filed per pay run
- Quarterly Withholding Tax Return (A1-QRT): filed quarterly
- Withholding Reconciliation Return (A1-R): filed annually
- Wage and Tax Statement (W-2): filed annually
Arizona Department of Economic Security (DES)
- Unemployment Insurance Tax Payment: filed quarterly
- Unemployment Tax and Wage Report (UC-018): filed quarterly
- New Hire Report: filed per each new employee
Make Arizona state payroll tax payments
To make Arizona withholding tax payments, you must be registered with the Arizona Department of Revenue. The Arizona Withholding identification number is actually the same as your Federal Employer Identification Number, but it needs to be registered separately with the AZ DOR.
If you’re not registered with the state, you can register online or by mail.
- To register online, go to www.AZTaxes.gov and select Enroll to File and Pay Online.
- To register by mail, fill out the Arizona Joint Tax Application and mail it to the address on the form. Be sure to check Withholding/Unemployment Tax in Box 1.
You have two options for making withholding tax payments.
- To pay online via eCheck or credit card, sign in to www.AZTaxes.gov.
- To pay by mail, make checks payable to the Arizona Department of Revenue and include your EIN and the filing period for which the payment is intended on the front of your check or money order. Mail the check to:
Arizona Department of Revenue
PO Box 2900
Phoenix, AZ 85038-9085
For questions about withholding tax payments, visit the AZ DOR website or call them at 602-255-3381.
To make Arizona unemployment tax payments, you must be registered with both the Arizona Department of Revenue and Arizona Department of Economic Security. You can register for both agencies by completing the Arizona Joint Tax Application and submitting it to the License & Registration Section of DOR.
There are two options for making unemployment tax payments.
- To pay online, sign in the Arizona Unemployment Tax and Wage System. You can find more information and instructions at the AZ DES website.
_ To pay by mail, Make your check payable to “DES - Unemployment Tax” and write your Arizona Unemployment Tax Account Number and the filing period for which the payment is intended on it. If you printed a payment voucher, enclose it with your payment, but if you do not have a voucher, it is not required. Mail your payment to:
DES - Unemployment Tax
PO Box 52027
Phoenix, AZ 85072-2027
For questions about unemployment tax payments, visit the AZ DES website or call them at (602) 542-4791.
Make Arizona unemployment insurance tax filings
Unemployment insurance tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
- To file online: use the Arizona Unemployment Tax and Wage System. You can make payments online, or select the paper check payment option to generate a payment voucher for you to print and submit along with your payment by check.
- To file by mail: You can file using the wage report form mailed to you by the Arizona Department of Economic Security, or by downloading Form UC-018. Include a check for any payments due with your paper report.
You must file a quarterly Unemployment Tax and Wage Report for each quarter whether or not wages were paid. If you stop submitting reports without your account being suspended, you will create delinquent reports which could result in higher future tax rates. You will be subject to a penalty if you fail to file.
For more information on state unemployment taxes, contact the Arizona Department of Economic Security at 602-542-4791 or visit the Arizona Department of Economic Security website.
Make Arizona payroll withholding tax filings
Quarterly withholding tax returns are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter). The return reconciles the tax paid for the quarter with the tax withheld for the quarter.
- To file online, go to AZTaxes.
- To file by mail, Download Form A1-QRT, and mail the return with any tax payment due to the address indicated on the form.
For questions about withholding tax payments, visit the Arizona Department of Revenue website or call them at (602) 255-3381.
Annual reconciliation returns are due by January 31 for the preceding calendar year. The return summarizes the employee taxes you’ve withheld during the year. The annual reconciliation is due in addition to providing each of your employees with a federal form W-2 summarizing the employee’s withholding for the year. You should also attach copies of the federal W-2s sent to all of your employees working in Arizona.
- To file online, go to AZTaxes to file, and make payments online.
- To file by mail, download Form A1-R and mail the return with any tax payment due to the address indicated on the form.
For questions about withholding tax payments, visit the Arizona Department of Revenue website or call them at (602) 255-3381.
Arizona W-2s are due by January 31 for the preceding calendar year. W-2s must be accompanied by Form A1-R or A1-T. If you file A1-R via paper, use A1-R to submit your W-2s. If A1-R is filed electronically, Form A1-T will need to be submitted to transmit your W-2s in addition to the A1-R.
- To file by mail with a paper copy:
- If you filed your A1-R via paper, download Form A1-R, and mail the return with the paper W-2s to the AZ Department of Revenue and the address indicated on the form.
- If A1-R was filed online, fill out and print Form A1-T, and mail the return with paper W-2s to the AZ Department of Revenue and the address indicated on the form.
- To file by mail with optical media, send W-2s via CD-ROM or DVD by mail to the address indicated on Forms A1-R or A1-T. Instructions for filing W-2s via optical media can be found on the Arizona Department of Revenue website.
For questions about filing your W-2s, visit the Arizona Department of Revenue website or call them at 602-255-3381.
Make unemployment insurance tax filings in Arizona
Unemployment insurance tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter):
- To file online: Go to the Arizona Unemployment Tax and Wage System. You can make payments online, or select the paper check payment option to generate a payment voucher for you to print and submit along with your payment by check.
- To file by mail: You can file using the wage report form mailed to you by the Arizona Department of Economic Security, or by downloading Form UC-018. Include a check for any payments due with your paper report.
You must file a quarterly Unemployment Tax and Wage Report for each quarter whether or not wages were paid. If you stop submitting reports without your account being suspended, you will create delinquent reports and could result in higher future tax rates. You will be subject to a penalty if you fail to file.
For more information on state unemployment taxes, contact the Arizona Department of Economic Security at 602-542-4791 or visit the Arizona Department of Economic Security website.
Amend duplicate tax filings in Arizona
Review how to amend duplicate filings for state payroll taxes.
The Arizona Department of Revenue (AZDOR) allows you to correct any payroll that was misreported on a previously submitted Form A1-QRT by submitting an amended Form A1-QRT.
Here are some general guidelines for completing your adjusted return:
- Download Form A1-QRT.
- Obtain a copy of the Form A1-QRT that was originally filed; this form is needed for the original wages reported.
- Check the Amended Return box on Part 1 of the form and explain why you are amending the return on Part 5.
- If you are filing for the fourth quarter of the calendar year, you must also file Form A1-R in order to reconcile the amount of tax withheld to the amount of tax liability reported throughout the year.
File your amended Form A1-QRT as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Arizona Department of Revenue at 800-352-4090 or visit the Arizona Department of Revenue website.
The Arizona Department of Revenue (AZDOR) allows you to correct any payroll that was misreported on a previously submitted Form A1-R by submitting an amended Form A1-R.
Here are some general guidelines for completing your adjusted return:
- Download Form A1-R.
- Check the Amended Return box in Part 1, and explain why you are amending the return in Part 4.
- Mail Form A1-R with Form W-2C(s) to the address listed on the form.
File your amended Form A1-R as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Arizona Department of Revenue at 800-352-4090 or visit the Arizona Department of Revenue website.
The Arizona Department of Revenue (AZDOR) allows employers to correct any misreported payroll on any previously submitted Form A1-R by filing an amended return.
Here are some general guidelines for completing your adjusted return:
- Obtain copies of the Form W-2C(s) that were filed with the IRS.
- Mail along with your amended Forms A1-R to the address listed on the form.
File your Form(s) W-2c as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Arizona Department of Revenue at 800-352-4090 or visit the Arizona Department of Revenue website.
The Arizona Department of Economic Security (DES) allows you to correct any payroll that was misreported on a previously submitted Form UC-018 by filing a Form UC-522, Adjustment Form.
Here are some general guidelines for completing your amended return:
- Sign in to the AZDES website to file electronically, or download Form UC-522 to file by mail.
- Obtain a copy of the Form UC-018 that was originally filed.
- Submit your completed form online, send your paper return by mail to the address listed on the form, or email your form to UITAccounting@azdes.gov.
File your Form UC-522 with the AZDES as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions on filing your amendment, contact the Arizona Department of Economic Security at 602- 532-6601 or visit the Arizona Department of Economic Security website.
Register for a new Arizona Payroll tax account number
The easiest way to get your Arizona Payroll tax account numbers is by registering online with the Arizona Department of Revenue and the Department of Economic Security. Online registration registers you with both the Department of Revenue and the Department of Economic Security.
After your registration is processed (online processing can take 2-3 weeks), you will receive your eight-digit (XXXXXXXX) Arizona Unemployment Tax Account Number.
Your Arizona Withholding Account Number is the same number as your nine digit (XX-XXXXXXX) Federal Employment Identification Number (EIN). This number will auto-populate in the Withholding Account Number field when you enter your EIN during Square Payroll sign-up. You must be registered with the State of Arizona Department of Revenue for your EIN to be linked to your Arizona account.
Locate existing Arizona Unemployment Tax Account Number
If you’ve filed state payroll tax returns in the past, you can find your Unemployment Tax Account Number on any previously submitted Unemployment Tax and Wage Report (UC-018). The Unemployment Tax Account Number is an eight-digit number.
For assistance, call the Arizona Department of Economic Security at 602-771-6602.
Add your Arizona unemployment insurance tax rate to Square Payroll
You must provide your UI Tax Rate when signing up for Square Payroll so we can accurately withhold this tax.
To locate your UI Tax Rate:
For new employers: you will receive your UI Tax Rate when you complete the Arizona Department of Revenue and the Department of Economic Security registration process.
For existing employers: you can find your UI Tax Rate on the Determination of Unemployment Tax Rate (Form UC-603) that the Department of Employment Security mails each January to all registered employees.
For assistance, call the Arizona Department of Economic Security at 602-771-6602.
You are responsible for ensuring Square Payroll has the correct UI Tax Rate for your business. If you need to update your rate, you can do so from your Square Dashboard.