Payroll Arizona, Unique Aspects of Arizona Payroll Law and Practice

The Arizona State Agency that oversees themail, fax or electronically.
collection and reporting of State income taxesThere is no penalty for a late report in Arizona.
deducted from payroll checks is:The Arizona new hire-reporting agency can be
Department of Revenuereached at 888-282-2064 / 602-340-0555 or on the
1600 W. Monroe St.web at
P.O. Box 29009Arizona does not allow compulsory direct deposit.
Phoenix, AZ 85038-9009Arizona requires the following information on an
602-255-2060 or 800-843-7196employee's pay stub:
Arizona requires that you use Arizona form "A-4,Earnings and deductions if employee paid by direct
Employee's Arizona Withholding Percentage Election"deposit information.
instead of a Federal W-4 Form for Arizona StateIn Arizona pay frequency is semimonthly within 16
Income Tax Withholding.days of each other; FLSA-exempt employees can be
Not all states allow salary reductions made underpaid monthly by out of state employer.
Section 125 cafeteria plans or 401(k) to be treated inThe lag time between when the services are
the same manner as the IRS code allows. In Arizonaperformed and when the employee must be paid is
cafeteria Payroll Alabama, Alabama payroll, payroll,five days after the pay period (10 days if payroll
payroll taxes, payroll withholding, payroll service planssystem is out of state); 16 days for exception or
and 401(k)'s are not taxable for income tax calculationovertime pay.
and are taxable for unemployment purposes.Arizona payroll law requires that involuntarily terminated
There is no provision in Arizona payroll law concerningemployees must be paid their final pay with in 3
supplemental wage tax rates.working days and that voluntarily terminated
You may file your Arizona State W-2s by magneticemployees must be paid their final pay by the next
media if you choose to.regular payday or by mail if employee requests it.
The Arizona State Unemployment Insurance AgencyDeceased employee's wages up to a maximum of
is:$5000.00 must be paid to the surviving spouse after
Department of Economic Securityan affidavit showing employee's death and status of
Unemployment Tax Divisionsurviving spouse is tendered.
P.O. Box 6028Escheat laws in Arizona require that unclaimed wages
SAT Code 911Bbe paid over to the state after one year.
Phoenix, AZ 85005The employer is further required in Arizona to keep a
602-248-9354record of the wages abandoned and turned over to
The State of Arizona taxable wage base forthe state for a period of five years.
unemployment purposes is wages up to $7000.00.There is no provision in Arizona law concerning tip
Meaning that unemployment tax will only be calculatedcredits against State minimum wage.
on the first $7000.00 of an employee's wages eachIn the Arizona payroll law there is no provision covering
year.required rest or meal periods.
Arizona magnetic media reporting of quarterly wageThere is no provision in Arizona law concerning record
reporting is optional.retention of wage and hour records therefor it is
Unemployment records must be retained in Arizonaprobably wise to follow FLSA guidelines.
for a minimum period of four years. This informationThe Arizona agency charged with enforcing Child
generally includes: name; social security number; datesSupport Orders and laws is:
of hire, rehire and termination; wages by period; payrollDivision of Child Support Enforcement
pay periods and pay dates; date and circumstances of3443 N. Central Ave., 4th Fl.
termination.Phoenix, AZ 85012
The Arizona State Agency charged with enforcing the602-252-4045
state wage and hour laws is:Arizona has the following provisions for child support
Labor Departmentdeductions:
P.O. Box 19070- When to start Withholding? 14 days after receipt of
Phoenix, AZ 85005-9070order.
602-542-4515- When to send Payment? Within 2 days of Payday.
There is no general provision for minimum wage in the- When to send Termination Notice? Within 10 days of
State of Arizona.termination.
There is also no general provision in Arizona State- Max Administrative Fee? greater of $4 per mo. or $1
Law covering paying overtime in a non-FLSA coveredper pay period.
employer.- Withholding Limits? 50% of disposable earnings
Arizona State new hire reporting requirements are thatPlease note that this article is not updated for changes
every employer must report every new hire andthat can and will happen from time to time.
rehire. The employer must report the federally requiredCharles J. Read, CPA has been in the payroll,
elements of:accounting and tax business for 30 years,the last
- Employee's namefifteen in private practice. Mr. Read is the author of
- Employee's address"Tax and Accounting Issuesin Forming a New
- Employee's social security numberBusiness."
- Employer's nameTo find professional payroll services at a budget price
- Employers addressgo to paperless payroll company.
- Employer's Federal Employer Identification NumberFor a full service payroll bureau with CPA's on staff
(EIN)visit .
This information must be reported within 20 days ofSee an excerpt of Mr. Read's interviews from William
the hiring or rehiring.Shatner's "Heartbeat of America"television show on
The information can be sent as a W4 or equivalent bythe web sites linked above.