Payroll Arizona, Unique Aspects of Arizona Payroll Law and Practice

The Arizona State Agency that oversees the
collection and reporting of State income				The Arizona new hire-reporting agency can be
taxes deducted from payroll checks is:				reached at 888-282-2064 / 602-340-0555 or on
				the web at
Department of Revenue
				Arizona does not allow compulsory direct
1600 W. Monroe St.				deposit.

P.O. Box 29009				Arizona requires the following information on
				an employee's pay stub:
Phoenix, AZ 85038-9009
				Earnings and deductions if employee paid by
602-255-2060 or 800-843-7196				direct deposit information.

Arizona requires that you use Arizona form				In Arizona pay frequency is semimonthly
"A-4, Employee's Arizona Withholding				within 16 days of each other; FLSA-exempt
Percentage Election" instead of a Federal W-4				employees can be paid monthly by out of state
Form for Arizona State Income Tax				employer.
Withholding.
				The lag time between when the services are
Not all states allow salary reductions made				performed and when the employee must be paid
under Section 125 cafeteria plans or 401(k)				is five days after the pay period (10 days if
to be treated in the same manner as the IRS				payroll system is out of state); 16 days for
code allows. In Arizona cafeteria Payroll				exception or overtime pay.
Alabama, Alabama payroll, payroll, payroll
taxes, payroll withholding, payroll service				Arizona payroll law requires that
plans and 401(k)'s are not taxable for income				involuntarily terminated employees must be
tax calculation and are taxable for				paid their final pay with in 3 working days
unemployment purposes.				and that voluntarily terminated employees
				must be paid their final pay by the next
There is no provision in Arizona payroll law				regular payday or by mail if employee
concerning supplemental wage tax rates.				requests it.

You may file your Arizona State W-2s by				Deceased employee's wages up to a maximum of
magnetic media if you choose to.				$5000.00 must be paid to the surviving
				spouse after an affidavit showing employee's
The Arizona State Unemployment Insurance				death and status of surviving spouse is
Agency is:				tendered.

Department of Economic Security				Escheat laws in Arizona require that
				unclaimed wages be paid over to the state
Unemployment Tax Division				after one year.

P.O. Box 6028				The employer is further required in Arizona
				to keep a record of the wages abandoned and
SAT Code 911B				turned over to the state for a period of five
				years.
Phoenix, AZ 85005
				There is no provision in Arizona law
602-248-9354				concerning tip credits against State minimum
				wage.
The State of Arizona taxable wage base for
unemployment purposes is wages up to				In the Arizona payroll law there is no
$7000.00. Meaning that unemployment tax will				provision covering required rest or meal
only be calculated on the first $7000.00 of				periods.
an employee's wages each year.
				There is no provision in Arizona law
Arizona magnetic media reporting of quarterly				concerning record retention of wage and hour
wage reporting is optional.				records therefor it is probably wise to
				follow FLSA guidelines.
Unemployment records must be retained in
Arizona for a minimum period of four years.				The Arizona agency charged with enforcing
This information generally includes: name;				Child Support Orders and laws is:
social security number; dates of hire, rehire
and termination; wages by period; payroll pay				Division of Child Support Enforcement
periods and pay dates; date and circumstances
of termination.				3443 N. Central Ave., 4th Fl.

The Arizona State Agency charged with				Phoenix, AZ 85012
enforcing the state wage and hour laws is:
				602-252-4045
Labor Department
				Arizona has the following provisions for
P.O. Box 19070				child support deductions:

Phoenix, AZ 85005-9070				- When to start Withholding? 14 days after
				receipt of order.
602-542-4515
				- When to send Payment? Within 2 days of
There is no general provision for minimum				Payday.
wage in the State of Arizona.
				- When to send Termination Notice? Within
There is also no general provision in Arizona				10 days of termination.
State Law covering paying overtime in a
non-FLSA covered employer.				- Max Administrative Fee? greater of $4
				per mo. or $1 per pay period.
Arizona State new hire reporting requirements
are that every employer must report every new				- Withholding Limits? 50% of disposable
hire and rehire. The employer must report				earnings
the federally required elements of:
				Please note that this article is not updated
- Employee's name				for changes that can and will happen from
				time to time.
- Employee's address
				Charles J. Read, CPA has been in the payroll,
- Employee's social security number				accounting and tax business for 30 years,the
				last fifteen in private practice. Mr. Read
- Employer's name				is the author of "Tax and Accounting Issuesin
				Forming a New Business."
- Employers address
				To find professional payroll services at a
- Employer's Federal Employer Identification				budget price go to paperless payroll
Number (EIN)				company.

This information must be reported within 20				For a full service payroll bureau with CPA's
days of the hiring or rehiring.				on staff visit .

The information can be sent as a W4 or				See an excerpt of Mr. Read's interviews from
equivalent by mail, fax or electronically.				William Shatner's "Heartbeat of
				America"television show on the web sites
There is no penalty for a late report in				linked above.
Arizona.

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Payroll Arizona, Unique Aspects of Arizona Payroll Law and Practice