Arizona Payroll Compliance Map

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Contact by phone in the Texas time zone:
The Engaging Manager Ian Lin, a well-English speaker
Tel: +1-510-996-2685

WWT – United States – Arizona Payroll Income Tax Deduction

WWT-US(AZ)-01 WWT Tax Entity

Question from client:
Is the United States salary income tax levied in federal or states? Or both federal and states?
Are the federal and states personal income tax that levied separately? Or levied together?
What is the standard withholding tax rate?

Answer from Evershine RD:
The U.S. federal government, and state and local governments in the U.S., use the pay-as-you-go (PAYG) method, also known as the pay-as-you-earn method (PAYE), to collect taxes through deductions from employment income paid to employees that employers must timely transmit to applicable revenue agencies.

Federal
There are several withholding tables applicable for different needs.
If you have an automated payroll system, the table below works for Forms W-4 for all prior, current, and future years.
This table also suitable for any amounts of wages and any number of withholding allowances claimed.

For Example:
Percentage method tables for Automated Payroll Systems (Standard)

States – Arizona
The percentages are 0.8%, 1.3%, 1.8%, 2.7%, 3.6%, 4.2%, or 5.1%.
If no Form A-4 is given to the employer, employer requires to withhold 2.7% of gross taxable wages.

WWT-US(AZ)-02 Registration

Question from client:
The United States salary income tax collection is under the jurisdiction of which government unit?
The registration of the United States salary income tax collection status, that is, the application procedure for the employer withholding certificate number, paper certificate number application, or online account application? Website? Employer withholding certificate?
What is the advance certificate number of the number?
Do you need to use the industrial and commercial certificate e-card to apply?

Answer from Evershine RD:

Federal
United States payroll tax is administered under Internal Revenue Service (IRS).
Employers must have an employer identification number (EIN) before remitting forms and withheld taxes to the IRS.
Employers can apply for an EIN online using the IRS website, by calling 800-829-4933, or by faxing or mailing Form SS-4, Application for Employer Identification Number, to the IRS.
Often, the employer’s federal tax identification number is used as the state identification number.

States – Arizona
Arizona Department of Revenue levied the state income tax from the wages.
Before hiring employees, an employer must register with the Revenue Department to obtain a withholding registration certificate and identification number.
Registration can be done online or by filing Form JT-1/UC-001, Arizona Joint Tax Application via https://www.aztaxes.gov/Home/Register.

WWT-US(AZ)-03 WWT Order (OD)

Question from client:
What is the order of United States salary income tax withholding declaration (information flow determines tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays?
At the same time as the declaration and payment?

Answer from Evershine RD:
Deposit First (DF): Make monthly payments then file the required forms.

WWT-US(AZ)-04 Mechanism of Filing (MOF)

Question from client:
United States’ salary income tax withholding declaration (information flow determines the tax base)
What is the method of account return?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist?
If electronic filing is possible: Web site URL?

Answer from Evershine RD:

Federal
Form 941, Employer’s Quarterly Federal Tax Return, report on federal income tax, social security, or Medicare taxes for each quarter.
Forms W-2, Wage and Tax Statement, to report wages paid to employees each year.
It must be distributed to employees by Jan. 31 of the next year.
Also, file Copy A of all paper and electronic Forms W-2 with Form W-3, Transmittal of Wage and Tax Statements, to the Social Security Administration (SSA). File Copy 1 to an employee’s state or local tax department.

To submit an employment tax form, you need to purchase IRS-approved software.
The software will require your signature to e-file the return.
You need to apply for an online signature PIN.
Alternatively, you can use the authorized IRS e-file Provider Locator Service to find a tax professional to submit your forms.

States – Arizona

Employers that accumulate at least $100,000 of federal payroll taxes are required to make a deposit by the next banking day.
The employer must file all withholding returns electronically.
Form A-1R, Arizona Withholding Reconciliation Return, must be filed by last day of January of the year after the year being reported.
Login to the website for filing online via https://www.aztaxes.gov/Home/Login.

WWT-US(AZ)-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for the United States salary income tax withholding payment (funding flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT? Or the above methods coexist?

Answer from Evershine RD:

Federal
Due date is the same as filing date.
File and Pay at EFTPS via https://www.eftps.gov/eftps/.

States – Arizona

Employers that owe $500 or more in state taxes must pay withholding taxes by electronic funds transfer (EFT).
Login to the website for payment online via https://www.aztaxes.gov/Home/Login.
Arizona accepts ACH Credit and ACH Debit.
FedWire is permitted with prior approval and only in emergency situations.

BNF – Deduction of Employee Social Welfare

BNF-US(AZ)-01 BNF Entity

Question from client:
United States social insurance, medical insurance, pensions, and other employee social welfare levy, is it federal?
Is it states? Or is there a federal plus states?
 If there is a federal and states, are they levied separately? Or levied together? What is the withholding tax rate?

Answer from Evershine RD:
United States social security levied at both federal and states level.

Federal
The federal government enacts laws regarding social taxes under Federal Insurance Contributions Act (FICA), and unemployment taxes under the Federal Unemployment Tax Act (FUTA).
All states, district and territories are required to assess their own unemployment tax as part of the FUTA program.

States – Arizona

BNF-US(AZ)-02 Registration

Question from client:
Social Security Certificate Number? What is the name of the government agency in charge of social insurance?
Medical insurance certificate number? What is the name of the government agency in charge of medical insurance?
Pension certificate number? The name of the government agency in charge of pensions?
How to apply for the social welfare certificate number for employees in the country?
Paper certificate number application? Or online account application? Website?
Do I Need to use the industrial and commercial certificate electronic card to apply?
Are the above three certificate numbers unified or separate? 

Answer from Evershine RD:

Federal
The Internal Revenue Service (IRS) oversees the collection of FICA (and FUTA) taxes while employers are required to annually report individual covered wage amounts and FICA (and FUTA) taxes withheld to the U.S. Social Security Administration (SSA).
The SSA administers the Social Security benefits program.
Employers can register for an employer identification number (EIN) through online using the IRS website, by calling 800-829-4933, or by faxing or mailing Form SS-4, Application for Employer Identification Number, to the IRS.

States – Arizona
The Arizona Department of Economic Security (DES) administers the state’s unemployment insurance program.
To register for an Unemployment Insurance Tax Account Number, complete an Arizona Joint Tax Application (form JT-1/UC-001) and submit to the License & Registration Section of Arizona Department of Revenue (DOR). DOR will then forward a copy to DES, to determine whether you are liable to pay Arizona Unemployment Insurance (UI) taxes.
The application can be submitted by way of online via https://www.aztaxes.gov/Home/Register or mail the application form to the address as below:
Arizona Department of Revenue
License & Registration Section
P.O. Box 29032
Phoenix, Arizona 85038-9032 

BNF-US(AZ)-03 BNF Order (OD)

Question from client:
What is the order of the withholding declaration of social welfare for United States employees (information flow determines the tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays? At the same time as the declaration and payment?

Answer from Evershine RD:
Same Period: Report and pay at the same time.

BNF-US(AZ)-04 Mechanism of Filing (MOF)

Question from client:
What is the method of reporting for withholding of social benefits for United States employees (information flow determines the tax base)?
Reporting cycle: every month? Every bimonthly? Every season? Every half year? Per year?
Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: Web site URL?

Answer from Evershine RD:

Federal
Form 941, Employer’s Quarterly Federal Tax Return, report on federal income tax, social security, or Medicare taxes for each quarter.
Report FUTA taxes by filing Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return. Due by Jan 31 of the following year.
To submit employment tax form, you need to purchase IRS-approved software.
The software will require your signature to e-file the return.
You need to apply for an online signature PIN. Alternatively, you can use the authorized IRS e-file Provider Locator Service to find a tax professional to submit your forms.

States – Arizona
To file an unemployment tax return, visit Arizona Department of Economic Security (DES) at https://uitws.azdes.gov/App/EmployerLogin.aspx to use the Internet Unemployment Tax and Wage System (TWS) to file a Quarterly Wage Report.
Use form UC-018 Unemployment Tax Wage Report to report the number of workers for a quarterly period and the quarterly due.
The UC-20 Wage Continuation form is incorporated into form UC-018.
It is used to report employee wages paid during the report quarter.
Report due by end of the following month of the respective quarter period.

BNF-US(AZ)-05 Mechanism of Payment (MOP)

Question from client:
What is the funding method for United States employee social welfare withholding contributions (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT? Or the above methods coexist?

Answer from Evershine RD:

Federal
Due date is the same as filing date.
File and Pay at EFTPS via https://www.eftps.gov/eftps/.

States – Arizona
Visit Arizona Department of Economic Security (DES) at https://uitws.azdes.gov/App/EmployerLogin.aspx to use the Internet Unemployment Tax and Wage System (TWS) to make a payment.
Online payments may be made either along with or separately from online report filing, or select the paper check payment option, which generates a payment voucher for you to print and submit along with payment by check.
The tax payment is due on the same date of the report is due.

Please be aware below Warning:
The above contents are digested by Evershine R&D and Education Center in October 2021.
Regulations might be changed as time goes forward and different scenarios will adopt different options.
Before choosing options, please contact us or consult with your trusted professionals in this area.

Contact Us

Phoenix Evershine BPO Service Limited Corp.
E-mail: phx4ww@evershinecpa.com
or
Contact by phone in the Texas time zone:
The Engaging Manager Ian Lin, a well-English speaker
Tel: +1-510-996-2685
or
For how to exchange data files between your Finance Accounting System and Evershine Cloud Accounting Information System,
please send an email to HQ4phx@evershinecpa.com
Dale Chen, Principal Partner/CPA in Taiwan+China+UK will be accountable for your case.
Email address:dalechen@evershinecpa.com
LinkedIn address:Dale Chen

Additional Information

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(version: 2024/07)
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