Arizona New Employer Information
Congratulations on your decision to become a new employer in Arizona! You will need a few things in place before you run your first payroll.
For help registering your business in Arizona, check out our partner, CorpNet.
Federal and State Tax Accounts
Federal Tax Accounts:
- Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can register online for the EFTPS.
- To find out more about EFTPS, please read our article, “What Is EFTPS?”
State of Arizona Tax Accounts:
- In Arizona, you will need to register with the Department of Revenue for your state income taxes (SIT) and the Department of Economic Security for your state unemployment account (SUI).You register with both agencies at the same time by completing an Arizona Joint Tax Application (form JT-1/UC-001) and submitting it to the License & Registration Section of DOR. DOR will then forward a copy to DES.
- Both accounts can be acquired by registering online.
- You will be given a unemployment taxation rate every year determined by the AZ Department of Economic Security.
- Arizona new employer SUTA tax rate is 2.0% for 2024. New employers are assigned the new employer rate for a minimum of two calendar years.
- For more information, please visit the AZ Department of Economic Security Unemployment Insurance Tax Rates.
- To learn more about SUTA tax, please read our article “What is SUTA Tax?”
Setting Up Your New Employee:
- Fill out the required Form I-9 for employee work verification. The top half of this form is to be filled out by the employee and the bottom half will be filled out by the employer.
- To learn more about Form I-9 please read our article, “Form I-9 In a Nutshell”
- Note: You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, please read “What Should Be in an Employee File?”
- Arizona employers are required by law to report all new hires online with the Arizona New Hire Reporting Center within 20 days from the date of hire or rehire.
- For more information please visit the Arizona New Hire Reporting Center.
- Be sure you have met the minimum wage requirements for the Federal Government and the state of Arizona. Arizona’s minimum wage is $$14.35 per hour for 2024.
- You need to display the minimum wage poster for your employees where they can read it.
Once you have all the necessary information, you will be able to set up your payroll for your business.
Please note: You will be required to keep employee payroll records for at least three years. For more information, please read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list for new employers. Please check with your state and federal government for full compliance.
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