Withholding
Withholding requirements
Employees should complete the Employee Withholding Form A-4 with the Arizona Department of Revenue.
Supplemental rate
The supplemental rate is a percentage of the gross pay.
State Unemployment Insurance (SUI)
Wage base
$8,000
Contributions
0.04% to 9.72%.
New employers should use a starting rate of 2%.
More information
Voluntary Contributions Are Allowed: In Arizona, employers are allowed to make voluntary contributions to potentially lower their SUI tax rate. This must be done by January 31 of the rate year. An employer can compare the potential tax savings to the cost of the voluntary payment to see if it is a beneficial option.
Quarterly Reporting and Payments: All SUI taxes are reported and paid on a quarterly basis. The Arizona Department of Economic Security (DES) provides the online Tax and Wage System (TWS) for employers to file quarterly reports and make payments.
Labor
Minimum wage
$14.70
Termination Pay
If an employee is fired: Employers must provide the final paycheck within seven working days or by the end of the next regular pay period, whichever comes first.
More information
Wages and Compensation: The final paycheck must include all wages and compensation owed to the employee through their last day of work.
Payout of PTO: Arizona law does not require employers to pay out accrued but unused paid time off (PTO) upon termination, unless the company has a specific policy or employment contract stating otherwise.
Payment Method: Final wages can be paid by negotiable check, draft, money order, or direct deposit.
Request by Mail: If requested by the employee, the final paycheck can be sent by mail.
New Hire Filing
Reporting deadline
Employers must report hiring, rehiring, and employees returning to work within 20 days
Reporting online
Reporting by mail
Arizona New Hire Reporting Center
P.O. Box 142901
Austin, TX 78714
New hire reporting form
Form W-4
Child Support
More information
Support Payment Clearinghouse
P.O. Box 52107
Phoenix, AZ 85072-2107
Other
New employer registration
Local taxes
N/A
Reciprocal states
N/A
Disability insurance
N/A
Helpful links
Last Updated
09/09/2025
States
The information provided here should not be considered legal or accounting advice nor should it substitute for legal, accounting, and other professional advice. If you require legal or accounting advice, you should always consult your licensed attorney, accountant, or other professional to discuss the facts of your particular situation.
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