Arizona Payroll Tax and Registration Guide

Employers in The Copper State, here’s what you need to know about payroll taxes and business registration in Arizona.

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Employers in The Copper State, here’s what you need to know about payroll taxes and business registration in Arizona. Business registration and payroll taxes can be complicated. In order to get the best advice you can, enlist the help of a lawyer or a Certified Public Accountant in the State of Arizona to guide you through the process.

Whether you’re a brand-new small business or branching out into Arizona for the first time, here’s how to stay compliant with payroll tax and business registration laws in the state.

Arizona tax account registration information

Before your business can register for a tax account in Arizona, you have to register your business with the State of Arizona’s Corporations Division. The steps to do this include:

  1. Choosing a business name that isn’t the same as or similar to a business name already in use.
  2. Check the name availability with the Arizona Corporation Commission and secure the name.
  3. Determine your entity type among options like S Corp, C Corp, 501c3 nonprofit, LLC and more.
  4. File with the Arizona Corporation Commission’s Corporations Division.

Once your business is properly and legally registered in the State of Arizona, then you’ll apply for a tax account. All businesses in Arizona have to register with the Arizona Department of Revenue in order to conduct taxable business activity in the state. This is one through Arizona’s Business One Stop.

Required payroll documentation for Arizona

Withholding information

Employers in the State of Arizona are required to withhold employment taxes from their employee’s wages. All employers in Arizona must file a quarterly withholding tax return (A1-QRT) with the Arizona Department of Revenue to report its Arizona withholding tax liability. Quarterly filing dates are April 30, July 31, October 31, and January 31 of the following year. The state’s guide to employer withholding filing obligations is a helpful resource.

Power of Attorney rules for Arizona Payroll Tax and Registration

In Arizona, taxpayers can use Arizona Form 285 to authorize the Department of Revenue to release confidential information to an entity appointed to represent the taxpayer. The Department of Revenue offers several power of attorney forms that relate to different tax functions.

Local income taxes imposed for Arizona

Full-time residents, part-year residents, and even nonresidents can be required to pay income taxes in Arizona. Income tax rates in the state range from 2.55% to 2.98%.

Arizona resources for Payroll Tax and Registration Laws

The Arizona Department of Revenue and the State of Arizona’s Corporations Division are helpful resources for payroll and tax registration in Arizona.

This website provides general information related to TriNet Zenefits services and related laws and best practices. This content and TriNet Zenefits employees do not provide legal advice. While we strive to provide useful general information applicable to the majority of our readers, we do not — and cannot — provide legal advice specific to your company and your situation. Already a TriNet Zenefits customer? Enjoy on-demand HR Advisory Services for all your HR and compliance questions. If not, learn more here.

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