Before you can pay employees, make sure you've registered for the applicable work and live in state. This can sometimes take several weeks—the sooner you start the process, the sooner you'll have the tax account info required to pay them.
Note, CertiPay Online can put your account in an applied for status. This may cause additional monthly fees as some states do not accept returns/tax liability deposits for accounts that are in an applied for status.
Arizona Tax Agencies
- State Income Tax Withholding - Arizona Department of Revenue (DOR)
- State Unemployment Insurance - Arizona Department of Economic Security (DES)
Account Registration Expectations
Arizona requires that you start your registration for both withholding and unemployment taxes from the same online site. You can:
- Register online—may take 2-3 weeks to complete. You'll need to keep that time frame in mind when planning for your first payroll in Arizona.
- Register in person at a local Arizona Department of Revenue office—registration is processed the same day.
The two state tax agencies process your application separately, and each agency will notify you once your registration is complete and active.
For unemployment tax, you're not liable until you've paid $1500 in wages in a calendar quarter, or had one employee for part of a day in 20 different weeks in a calendar year.
Register in Arizona online
1. Visit the AZ Taxes website. Both agencies listed above will process the single application separately and notify you after.
2. Locate the "Businesses" section.
3. Click on Enroll to File and Pay Online.
4. Review the overview of the registration process—complete registration for the general "AZTaxes" account before proceeding. If your business is not licensed or registered, you can create an AZTaxes account here.
5. Once your general AZTaxes account is created, complete any remaining prompts to register for a withholding account.
6. After receiving your withholding account number, sign in to your AZTaxes account.
7. Head to the Link Accounts section and link your withholding account number to your AZTaxes account—detailed instructions can be found here.
If you have any questions regarding your withholding taxes, call the AZ DOR direct at (602) 255-3381.
State Unemployment Insurance Tax Requirements
Your company becomes liable for state unemployment insurance tax once the company has:
- Paid $1500 in wages during a calendar quarter or had at least one Arizona-employee working for any part of the week, for 20 or more different weeks during a calendar year.
Register for unemployment tax when you register for withholding tax
The two state tax agencies process your application separately, and each agency will notify you once your registration is complete and active. For unemployment tax, you're not liable until you've paid $1500 in wages in a calendar quarter or had one employee for part of a day in 20 different weeks in a calendar year.
Where to Find Your Tax Account Numbers
You can find your unemployment account number and rate by:
- Reviewing notices received from the Arizona Department of Economic Security. You receive your Unemployment Insurance (UI) rate with an annual notice from the DES and it typically takes effect on January 1 each year.
- Giving the AZ DES a call at (602) 771-6602.
Agency Contact Information
- Arizona Department of Revenue (602) 255-3381
- Arizona Department of Economic Security (602) 771-6601