What are the Arizona payroll tax registration requirements?

Last modified 8/12/2025 6:21:24 AM EST

If you are planning to process payroll in Arizona or hire employees who live or work there, you are required to register as an employer with the state. This helps you withhold, report, and pay Arizona Payroll taxes. Here’s the detailed information to help you understand Arizona tax requirements. 

Arizona(AZ) Registration for Income and Unemployment Taxes

The State of Arizona requires you to register with the following tax agencies to make Arizona state tax payments and filings:

• Arizona Department of Revenue(DOR): Register and get your Withholding Account Number to file and pay SIT taxes. 

• Arizona Department of Employment Services(DES): Register and get your Unemployment Tax Account Number to file and pay SUI taxes.
   

Register for the Department of Revenue(DOR) and the Department of Employment Services (DES)

You must register with the Arizona DOR to report the state withholdings. Here are some common methods to register. 

• Register via Online

  • Visit Arizona (DOR)

  • Navigate to the “Business” Section and click “Enroll to File and Pay Online.”

  • Review the instructions and click ‘Continue’

  • If you don’t have an AZ taxes account, provide the required information and click ‘Register’.

  • Once your general AZ Taxes account is created, complete any remaining prompts to register for a withholding account.

  • You’ll receive your withholding account number, sign your AZ taxes account, and navigate to the ‘Link Accounts’ section to link your withholding account number. 

• Register by mail

  • To register by mail, file the Arizona Joint Tax Application (Form JT-1/UC-001) and mail it to the respective address. Make sure to check withholding/Unemployment Tax in Box 2. 

• Number Issued:
  After completing the registration, you will receive an Arizona Withholding Tax Account Number. This number is used to file state withholding forms like A1-WP, A1-QRT, and A1-R, and Arizona UI Tax Account Number, which is used to file quarterly UI reports and make unemployment tax payments.

• Number Format:

  • Withholding Tax Account Number:   This number is the same as the 9-digit Federal Employment Identification Number (FEIN) (Format: 999999999). 

  • UI Tax Account Number: The number is typically an 8-digit numeric code, such as 999999999
     

State Withholding Certificate (Form A-4)

Form A-4 is the Employee’s Arizona Withholding Percentage Election form. Employees use it to tell their employer what percentage of their wages should be withheld for Arizona state income tax. It’s similar to the federal Form W-4, but it’s for Arizona state tax only.

Employees must complete Form A-4 within 5 days of employment and choose a different Arizona withholding percentage (0.5%, 1.0%, 1.5%, 2.0%, 2.5%, 3.0%, 3.5%). If not submitted, your employer must withhold 2% of your gross wages. Current employees must file a new form to change their withholding amount.

Employers require Form A-4 to determine the correct Arizona state income tax withholding rate for each employee and ensure accurate payroll processing.

Exemption 

If the employee is exempt from Arizona state income tax withholding, the employee must claim exemption using Form AZ-WEC. Here are the exemptions

• Employees who are qualified native americans

• Employees who are non-resident military spouses

• Employees who are non-resident employees from specific states (California, Indiana, Oregon, Virginia)  

Arizona Payroll Tax Rates for 2025

Minimum Wage Base for Arizona

Minimum wage rate is the lowest pay that an employer is legally allowed to give an employee, as set by law. 

Wage Type	Arizona Tax Rates	Federal Tax Rates
Minimum Wage	$14.70	$7.25
Tipped Minimum Wage	$11.70	$2.13
Actual Tip Credit	$3.00	$5.12

Arizona State Unemployment Insurance (SUI) 

SUI taxes are state-level payroll taxes that employers pay to fund unemployment benefits for eligible workers who lose their jobs through no fault of their own. Here are the SUI tax rate for Arizona:

Arizona SUI Rates
Wage Base Limit	$8,000
Employee Subject to Tax	No
Tax Rate for Experienced Employers	0.2% – 5.40%
Tax Rate for New Employers	2.00%

Arizona Payroll Tax Payments

To pay your Withholding and unemployment taxes, you must follow the given methods:

• Withholding tax payments

  • Pay via Online: To pay online via echeck or credit card sign in to AZ Taxes. 

  • Pay via Mail: To pay by mail, make checks payable to Arizona Department of Revenue and include your EIN and filing period.

  • Mail the check to:
    
    Arizona Department of Revenue
    PO Box 2900
    Phoenix, AZ 85038-9085

• Unemployment tax payments

  • Pay via Online: To pay your unemployment tax payment, sign in to the Arizona Unemployment Tax and Wage System

  • Pay via Mail: To pay your unemployment taxes by mail, create a check and pay to DES. Make sure to include EIN and the filing period in front of the check or money order. If you printed a payment voucher enclose it with your payment, if you don’t have a voucher, it is not required.

    Mail the check to:

    Arizona Department of Revenue
    PO Box 2900
    Phoenix, AZ 85038-9085

Arizona Payroll Tax Filings

Here are the tax forms to be filed with the Department of Revenue (DOR) and Department of Economic Security(DES).

Arizona Department of Revenue (DOR)

• Form (A1-QRT) Quarterly Withholding Tax Return: This is a summary report of all income taxes withheld from employee paychecks during the quarter.

How to file?

• File by online: To file online, visit the Arizona Department of Revenue

• File by mail: You must download Form A1-QRT and mail the return with tax payment to the address mentioned on the form.
  Deadline: Quarterly withholding tax returns are due by the last day of the month following the end of the calendar quarter

  • Q1 (Jan–Mar): April 30

  • Q2 (Apr–Jun): July 31

  • Q3 (Jul–Sep): October 31

  • Q4 (Oct–Dec): January 31 

Amendments:

• Form A1-QRT, Arizona Quarterly Withholding Tax Return

To correct the errors on previously filed Form A1-QRT, you must follow the instructions given below:

• Download Form A1-QRT, and also obtain a copy of originally filed Form A1-QRT.

• Check the appropriate box to amend on Part 1 of the form and explain in Part 5.

• Make sure to include Form A1-R, if you are filing for the Fourth quarter of the year.

 

• Form (A1-R) Withholding Reconciliation Return: This is the annual reconciliation Form. Employers who complete Form A1-QRT must file this form to reconcile their withholding deposits made with DOR.

How to file?

• File by online: To file online, visit the AZ taxes and make payments online

• File by mail: You must download Form A1-R and mail the return with any tax payment 

Deadline: The deadline for filing annual Form A1-R is January 31
 

Amendments: 

• Form A1-R, Arizona Withholding Reconciliation Tax Return

To correct the errors on previously filed Form A1-QRT, you must follow the instructions given below:

• Download Form A1-R

• Check the appropriate box to amend on Part 1 of the form and explain in Part 4.

• Mail Form A1-R with Form W-2C(s) to the address listed on the form.
   

• Form AZ W-2 Wage and Tax Statement:  Use the W-2 to file your income tax return with the IRS and your state, helping determine whether you've paid enough tax during the year or if you'll receive a refund or owe more.

How to file?

• File by online: If you file through online, fill out Form A1-T and mail with Form W-2s to the address mentioned on the form.

• File by mail: If you filed your A1-R by mail download Form A1-R and mail the return to the address mentioned on the form.

• To file by mail with optical media, send W-2s via CD-ROM or DVD by mail to the address mentioned on Forms A1-R or A1-T. 

Deadline: The deadline for filing annual Form A1-R is January 31

Amendments:

• Wage and tax statement (W-2)

To correct the errors on previously reported Form W-2C(s), follow the instructions given below:

• Obtain the copies of Form W-2C(s) that were filed with the IRS.

• Mail along with Form  A1-R to the address mentioned on the form.

Arizona Department of Economic Security (DES)

• Unemployment Tax and Wage Report (UC-018): This is the quarterly form where you report total employee wages and calculate how much UI tax you owe.

How to file?

• File by online: To file your unemployment taxes, visit the Arizona Unemployment Tax and Wage System. 

• File by mail: You must download Form UC-018 and include the check for payment due along with the form.

Deadline: Unemployment taxes are due by the last day of the month following the end of the calendar quarter.

• Q1 (Jan–Mar): April 30

• Q2 (Apr–Jun): July 31

• Q3 (Jul–Sep): October 31

• Q4 (Oct–Dec): January 31 
   

Amendments

• Form UC-018, Unemployment Tax and Wage Report

To correct the errors on previously filed Form UC-018, you must follow the instructions given below:

• To file electronically, sign in to AZDES website or download the Form UC-522 to file by mail.

• Obtain a copy of the previously filed Form UC-018.

• Submit the form through online or mail to the address listed on the form or email to UITAccounting@azdes.gov 

New Hire Report 

All employers hiring new or rehired employees (those returning to work after a break of 60+ days) must report to the Arizona New Hire Reporting Center within 20 days of the hire or rehire date.

What information is required?

Employer information:

• Name

• Address

• Federal Employer Identification Number (FEIN)

Employee information:

• Full name

• Address

• Social Security Number (SSN)

• Date of hire

• Date of birth (optional but recommended)

How to File New Hire Report

You can file your Arizona New Hire Report in three main ways:

1. Online (Preferred)

• Website: Arizona New Hire Reporting Center

• Create an account or log in.

• Enter the required employer and employee details.

• Submit electronically — confirmation is provided immediately.

2. Electronic File Upload

• For bulk reporting (multiple employees).

• Supports text file, Excel, or CSV formats that meet Arizona specifications.

• Upload through the Arizona New Hire portal.

3. Paper Form (Fax or Mail)

• Download and complete the Arizona New Hire Reporting Form from the state website.

• Mail to:
  Arizona New Hire Reporting Center
  P.O. Box 402
  Holbrook, MA 02343

• Fax to: (888) 282-0502