Arizona Payroll

Did you know that Arizona has reciprocal state taxation agreements with several other states? That most Arizona seasonal workers are exempt from state income tax withholding?

Arizona Income Tax Withholding

The Arizona Tax Act of 1987 requires employers to withhold state income tax from the wages of residents and non-residents and to remit the amounts withheld to the Arizona Department of Revenue.

Arizona has reciprocal taxation agreements with California, the District of Columbia, Indiana, Oregon and Virginia. Residents of any of these states who work in Arizona can request an exemption from income tax withholding in Arizona by filing Form WEC, Withholding Exemption Certificate.

Part-time or seasonal agricultural workers are exempt unless the workers' principal duties involve operating mechanically driven devices. However, persons engaged in other agriculture-related employment, which is not seasonal, are subject to withholding.

Arizona Benefits

Arizona Voting Rights:

Employer Right To Schedule Voting Hours	Pay Deduction For Voting Time Leave
Yes	Prohibited

Arizona law does not specify the exact amount of leave time that must be granted. Employees must have a total of three hours while the polls are open to vote. Employers must grant leave only if the employees do not have three hours outside of their shifts while the polls are open. The employer specifies the hours employees may be absent. Employers may not impose a penalty or make a deduction from employees' wages because of their absence to vote.

Arizona Compensation

Arizona employers must pay at least $6.75 an hour to covered employees. The minimum wage is adjusted annually for inflation. Employers can pay tipped employees cash wages of at least $3.75 an hour. Tips plus $3.75 an hour must equal the minimum wage for all hours worked. Arizona employers can average tips over the course of a payroll period.

Arizona Payroll

Arizona employers must pay wages at least twice in a calendar month. Payments must be no longer than 16 days apart and within five working days after the pay period ends. Overtime pay or exception pay must be paid no later than 15 days after it is earned.

Arizona Unemployment:

Taxable Wage Base ($000s)	New Employer Rate (% Taxable Wages)	Employee Tax Rate (% Taxable Wages)	Period Effective
7,000	2.0	None	Calendar Year 2007

Helpful Links for Arizona Payroll

Arizona Department of Revenue
Office of Tax Policy
1600 West Monroe
Phoenix, Arizona 85007-2650
(602) 255-2060

Arizona Department of Economic Security
Employment Administration
PO Box 29225
Phoenix, Arizona 85038-9225
(877) 600-2722

Arizona Laws
Access Revised Statues from the Arizona State Legislature online site.

Arizona Industrial Commission