Payroll Arizona, Unique Aspects of Arizona Payroll Law and Practice

The Arizona State Agency that oversees theArizona.The Arizona new hire reporting agency
collection and reporting of State income taxescan be reached at 888-282-2064 / 602-340-0555
deducted from payroll checks is:Department ofor on the web at .Arizona does not allow
Revenuecompulsory direct deposit.Arizona requires the
1600 W. Monroe St.following information on an employee's pay
P.O. Box 29009stub:Earnings and deductions if employee paid by
Phoenix, AZ 85038-9009direct deposit. information.In Arizona pay
602-255-2060 or 800-843-7196frequency is semimonthly within 16 days of each
requires that you use Arizona form "A-4,other; FLSA-exempt employees can be paid
Employee's Arizona Withholding Percentagemonthly by out of state employer.The lag time
Election" instead of a Federal W-4 Form forbetween when the services are performed and
Arizona State Income Tax Withholding.Not allwhen the employee must be paid is five days
states allow salary reductions made under Sectionafter the pay period (10 days if payroll system is
125 cafeteria plans or 401(k) to be treated in theout of state); 16 days for exception or overtime
same manner as the IRS code allows. In Arizonapay.Arizona payroll law requires that involuntarily
cafeteria plans and 401(k)'s are not taxable forterminated employees must be paid their final pay
income tax calculation and are not taxable forwith in 3 working days and that voluntarily
unemployment purposes.There is no provision interminated employees must be paid their final pay
Arizona payroll law concerning supplemental wageby the next regular payday or by mail if
tax rates.You may file your Arizona State W-2semployee requests it.Deceased employee's wages
by magnetic media if you choose to.The Arizonaup to a maximum of $5000.00 must be paid to
State Unemployment Insurance Agencythe surviving spouse after an affidavit showing
is:Department of Economic Securityemployee's death and status of surviving spouse
Unemployment Tax Divisionis tendered.Escheat laws in Arizona require that
P.O. Box 6028unclaimed wages be paid over to the state after
SAT Code 911Bone year.The employer is further required in
Phoenix, AZ 85005Arizona to keep a record of the wages
602-248-9354abandoned and turned over to the state for a
State of Arizona taxable wage base forperiod of five years.There is no provision in
unemployment purposes is wages up to $7000.00.Arizona law concerning tip credits against State
Meaning that unemployment tax will only beminimum wage.In the Arizona payroll law there is
calculated on the first $7000.00 of an employee'sno provision covering required rest or meal
wages each year.Arizona magnetic mediaperiods.There is no provision in Arizona law
reporting of quarterly wage reporting isconcerning record retention of wage and hour
optional.Unemployment records must be retainedrecords therefor it is probably wise to follow
in Arizona for a minimum period of four years.FLSA guidelines.The Arizona agency charged with
This information generally includes: name; socialenforcing Child Support Orders and laws is:Division
security number; dates of hire, rehire andof Child Support Enforcement
termination; wages by period; payroll pay periods3443 N. Central Ave., 4th Fl.
and pay dates; date and circumstances ofPhoenix, AZ 85012
termination.The Arizona State Agency charged602-252-4045
with enforcing the state wage and hour lawshas the following provisions for child support
is:Labor Departmentdeductions:When to start Withholding? 14 days
P.O. Box 19070after receipt of order.
Phoenix, AZ 85005-9070When to send Payment? Within 2 days of
602-542-4515Payday.
is no general provision for minimum wage in theWhen to send Termination Notice? Within 10
State of Arizona.There is also no general provisiondays of termination.
in Arizona State Law covering paying overtime inMax Administrative Fee? greater of $4 per mo.
a non-FLSA covered employer.Arizona State newor $1 per pay period.
hire reporting requirements are that everyWithholding Limits? 50% of disposable earnings
employer must report every new hire and rehire.Please note that this article is not updated for
The employer must report the federally requiredchanges that can and will happen from time to
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
Employer's nameof "How to Start a New Business". For
Employers addressProfessional Payroll services at a Budget Price go
Employer's Federal Employer Identificationto a Paperless Payroll Company. Go to For a full
Number (EIN) This information must be reportedservice payroll service bureau.See an excerpt of
within 20 days of the hiring or rehiring.Mr. Read's interviews from William Shatners
The information can be sent as a W4 or"Heartbeat of America" television show on the
equivalent by mail, fax or electronically.websites linked above.
There is no penalty for a late report in