Arizona Payroll, Unique Aspects of Arizona Payroll Law and Practice

The Arizona State Agency that oversees the collection and reporting of state income taxes deducted from payroll checks is:

revenue Department

1600 W. Monroe St.

P.O. Box 29009

Phoenix, AZ 85038-9009

602-255-2060 or 800-843-7196

[http://www.revenue.state.az.us/#WithholdingTax]

Arizona requires that you use the Arizona form “A-4, Arizona Employee’s Choice of Withholding Percentage” instead of a federal form W-4 for Arizona state income tax withholding.

Not all states allow salary reductions made under Section 125 or 401 (k) cafeteria plans to be treated the same way the IRS code allows. In Arizona, cafeteria and 401 (k) plans are not taxable for income tax calculation and are not taxable for unemployment purposes.

There is no provision in Arizona payroll law regarding supplemental wage tax rates.

You can submit your Arizona State W-2 form by magnetic means if you wish.

The Arizona State Unemployment Insurance Agency is:

Economic Security Department

Unemployment Tax Division

P.O. Box 6028

SAT code 911B

Phoenix, AZ 85005

602-248-9354

http://www.de.state.az.us/links/esa/index.html

The taxable wage base of the state of Arizona for unemployment purposes is wages up to $ 7000.00. Which means that unemployment tax will only be calculated on the first $ 7000.00 of an employee’s salary each year.

Arizona Magnetic Media Reports on Quarterly Wage Reports are optional.

Unemployment records must be kept in Arizona for a minimum period of four years. This information generally includes: name; Social Security number; hiring, rehiring and termination dates; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

The Arizona state agency charged with enforcing state wage and hour laws is:

work Department

P.O. Box 19070

Phoenix, AZ 85005-9070

602-542-4515

[http://www.ica.state.az.us/labor/labortop.htm]

There is no general provision for the minimum wage in the state of Arizona.

There is also no general provision in Arizona State Law that covers overtime pay at an employer not covered by the FLSA.

The state of Arizona’s new hire reporting requirements are that each employer must report every new hire and rehire. The employer must report the elements required by the federal government of:

  • Name of the employee
  • Employee address
  • Employee’s Social Security Number
  • Name of the employee
  • Employee address
  • Employer’s Federal Employer Identification Number (EIN)

This information must be reported within 20 days after hiring or rehiring.

Information can be submitted as W4 or equivalent by mail, fax, or electronically.

There is no penalty for a late report in Arizona.

You can contact the Arizona New Hire Reporting Agency by calling 888-282-2064 / 602-340-0555 or on the web at http://www.az-newhire.com.

Arizona does not allow mandatory direct deposit.

Arizona requires the following information on an employee’s pay stub:

Earnings and deductions if the employee pays by direct deposit. information.

In Arizona, the payment frequency is biweekly with a difference of 16 days from each other; Employees who are exempt from the FLSA can receive monthly payments from an out-of-state employer.

The time between when services are rendered and when the employee is due is five days after the pay period (10 days if the payroll system is out of state); 16 days for payment of exceptions or overtime.

Arizona payroll law requires that involuntarily terminated employees be paid their final pay within 3 business days and that voluntarily terminated employees be paid their final pay before the next regular payday or by mail if the employee is required to do so. requests.

Wages of the deceased employee up to a maximum of $ 5000.00 must be paid to the surviving spouse after an affidavit is filed showing the death of the employee and the status of the surviving spouse.

Withholding laws in Arizona require that unclaimed wages be paid to the state after one year.

In addition, the employer is required in Arizona to keep a record of wages abandoned and turned over to the state for a period of five years.

There is no provision in Arizona law regarding tip credits against the state minimum wage.

There is no provision in Arizona payroll law that covers required meal or rest periods.

There is no provision in Arizona law regarding the retention of wage and hour records, so it is probably prudent to follow the FLSA guidelines.

The Arizona agency in charge of enforcing child support orders and laws is:

Child Support Enforcement Division

3443 N. Central Ave., 4th Fl.

Phoenix, AZ 85012

602-252-4045

http://www.de.state.az.us/links/dsce/index.html

Arizona has the following provisions for child support deductions:

  • When to start withholding? 14 days after receipt of the order.
  • When to send the payment? Within 2 days after the payday.
  • When to send the Notice of Termination? Within 10 days after termination.
  • Maximum administrative fee? greater than $ 4 per month. or $ 1 per pay period.
  • Retention limits? 50% of available earnings

Please note that this article is not updated for changes that can and will happen from time to time.

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