Arizona Payroll Information

Christina Hageny

leads Valor with over a decade
of CPP / PHR professional
experience

Arizona Payroll Information

Christina Hageny

leads Valor with over a decade
of CPP / PHR professional
experience

Paying Employees in Arizona

Arizona 2021 Minimum Wage:

  • $12.15 per hour
  • $15.00 per hour in Flagstaff
  • $3.00 per hour tip credit maximum

Arizona Overtime Rules: 1.5 x’s the regular rate of pay for non-exempt employees for all hours worked over 40 in a workweek

Arizona Paystub Requirements:

  • When an employee’s wages are paid by deposit in a financial institution the employee shall be furnished with a written or electronic statement of the employee’s earnings and withholdings.
  • When an employee’s wages are paid to a payroll card account the employee shall be furnished with a written or electronic statement of the employee’s earnings and withholdings. 

How often do you have to pay employees in Arizona?

  • Employees must be paid at least twice per month, no more than 16 days apart.  If the payday falls on a holiday the employer must pay the employee prior to the scheduled pay date.

When is an employee’s final check due in Arizona?

  • Involuntary terminations – within seven working days or the next payday, whichever is sooner
  • Voluntary resignations – next payday

Arizona Withholding Tax 

Arizona Withholding Tax Registration

Wages subject to Arizona withholding

  • Wages earned in Arizona are subject to Arizona income tax

Arizona Employee’s Withholding Exemption Certificate

Reciprocity

  • California, Indiana, Oregon, and Virginia

Arizona Withholding Tax Due Dates

  • If the average AZ income tax in the preceding 4 calendar quarters is less than $200 they may deposit annually.  
  • If the average is between $200 and $1,500 payment can be made quarterly (by the last day of the month following the end of the quarter).  
  • If the average exceeds $1,500 payments should be made at the same time as federal withholding deposits.
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Arizona Unemployment Tax

Arizona Unemployment Tax Registration

Arizona Unemployment Tax Employer Liabilities

  • New employer rate: 2%
  • 2021 Wage Base: $7,000

Arizona Unemployment Tax Due Dates

  • Return and payment are due quarterly on the last day of the month following the end of the reporting period

Arizona New Hire Reporting

  • Report new hires within 20 days of hire/rehire
  • PO Box 142901
    Austin, TX 78714
  • Phone: 888-282-2064
  • Fax: 888-282-0502
  • Report new hires online

Arizona Child Support

  • Clearinghouse
    PO Box 52107
    Phoenix, AZ 85072
  • Phone: 602-252-4045
  • Remit Arizona child support payments online

Resources