Payroll Arizona, Unique Aspects of Arizona Payroll Law and Practice

The Arizona State Agency that oversees theThere is no penalty for a late report in Arizona.The
collection and reporting of State income taxesArizona new hire reporting agency can be reached at
deducted from payroll checks is:Department of888-282-2064 / 602-340-0555 or on the web at
Revenue.Arizona does not allow compulsory direct
1600 W. Monroe St.deposit.Arizona requires the following information on an
P.O. Box 29009employee's pay stub:Earnings and deductions if
Phoenix, AZ 85038-9009employee paid by direct deposit. information.In Arizona
602-255-2060 or 800-843-7196pay frequency is semimonthly within 16 days of each
requires that you use Arizona form "A-4, Employee'sother; FLSA-exempt employees can be paid monthly
Arizona Withholding Percentage Election" instead of aby out of state employer.The lag time between when
Federal W-4 Form for Arizona State Income Taxthe services are performed and when the employee
Withholding.Not all states allow salary reductions mademust be paid is five days after the pay period (10 days
under Section 125 cafeteria plans or 401(k) to beif payroll system is out of state); 16 days for exception
treated in the same manner as the IRS code allows. Inor overtime pay.Arizona payroll law requires that
Arizona cafeteria plans and 401(k)'s are not taxableinvoluntarily terminated employees must be paid their
for income tax calculation and are not taxable forfinal pay with in 3 working days and that voluntarily
unemployment purposes.There is no provision interminated employees must be paid their final pay by
Arizona payroll law concerning supplemental wage taxthe next regular payday or by mail if employee
rates.You may file your Arizona State W-2s byrequests it.Deceased employee's wages up to a
magnetic media if you choose to.The Arizona Statemaximum of $5000.00 must be paid to the surviving
Unemployment Insurance Agency is:Department ofspouse after an affidavit showing employee's death
Economic Securityand status of surviving spouse is tendered.Escheat
Unemployment Tax Divisionlaws in Arizona require that unclaimed wages be paid
P.O. Box 6028over to the state after one year.The employer is
SAT Code 911Bfurther required in Arizona to keep a record of the
Phoenix, AZ 85005wages abandoned and turned over to the state for a
602-248-9354period of five years.There is no provision in Arizona
State of Arizona taxable wage base forlaw concerning tip credits against State minimum
unemployment purposes is wages up to $7000.00.wage.In the Arizona payroll law there is no provision
Meaning that unemployment tax will only be calculatedcovering required rest or meal periods.There is no
on the first $7000.00 of an employee's wages eachprovision in Arizona law concerning record retention of
year.Arizona magnetic media reporting of quarterlywage and hour records therefor it is probably wise to
wage reporting is optional.Unemployment records mustfollow FLSA guidelines.The Arizona agency charged
be retained in Arizona for a minimum period of fourwith enforcing Child Support Orders and laws is:Division
years. This information generally includes: name; socialof Child Support Enforcement
security number; dates of hire, rehire and termination;3443 N. Central Ave., 4th Fl.
wages by period; payroll pay periods and pay dates;Phoenix, AZ 85012
date and circumstances of termination.The Arizona602-252-4045
State Agency charged with enforcing the state wagehas the following provisions for child support
and hour laws is:Labor Departmentdeductions:When to start Withholding? 14 days after
P.O. Box 19070receipt of order.
Phoenix, AZ 85005-9070When to send Payment? Within 2 days of Payday.
602-542-4515When to send Termination Notice? Within 10 days of
is no general provision for minimum wage in the Statetermination.
of Arizona.There is also no general provision in ArizonaMax Administrative Fee? greater of $4 per mo. or $1
State Law covering paying overtime in a non-FLSAper pay period.
covered employer.Arizona State new hire reportingWithholding Limits? 50% of disposable earnings
requirements are that every employer must reportPlease note that this article is not updated for
every new hire and rehire. The employer must reportchanges that can and will happen from time to
the federally required elements of:Employee's nametime.Charles J. Read, CPA has been in the payroll,
Employee's addressaccounting and tax business for 30 years, the last
Employee's social security numberfifteen in private practice. Mr. Read is the author of
Employer's name"How to Start a New Business". For Professional
Employers addressPayroll services at a Budget Price go to a Paperless
Employer's Federal Employer Identification NumberPayroll Company. Go to For a full service payroll
(EIN) This information must be reported within 20 daysservice bureau.See an excerpt of Mr. Read's
of the hiring or rehiring.interviews from William Shatners "Heartbeat of
The information can be sent as a W4 or equivalentAmerica" television show on the websites linked
by mail, fax or electronically.above.