Arizona Paycheck Laws
Before providing pay stubs to employees and contractors in Arizona, it's essential to understand the relevant laws and regulations governing paystub operations in the state.
This guide will outline the essential information you need to know as an employer conducting business in Arizona, ensuring compliance and smooth payroll management.
Pay stub regulations in Arizona
1. Are pay stubs required by law in Arizona?
Employers in Arizona must provide their employees with pay stubs every payday.
2. How often do you need a pay stub in Arizona?
Employers must pay their employees two or more times in a month, not more than 16 days apart. As pay stubs are mandatory in Arizona, you will need to provide pay stubs every time you pay your employees.
3. What information can be included on a pay stub in Arizona?
The following information can be included in employees’ pay stubs:
- Employee information such as name, last 4 digits of social security number, and address
- Employer information such as name, employer identification number (EIN), and address
- Pay period
- Gross earnings before deductions
- Taxes withheld
- Employee contributions
- Deductions
- Net pay
4. Does Arizona have a state income tax?
Yes, state income taxes are applicable to employees in the state of Arizona.
5. Are there any other taxes applicable to Arizona?
No. There are no local taxes in addition to federal and state income taxes applicable to employees in the state of Arizona.
Information needed to generate pay stubs
To provide employees with accurate pay stubs, the information below is required.
- State elected percentage based on gross taxable wages
- The employee's exemption status from state withholding
- Additional state withholding amount
Have all the information handy?
With SecurePayStubs, you can calculate accurate federal and Arizona state taxes for your employees and generate pay stubs securely.
Arizona wage and hour laws
Employers are required to provide minimum wage, overtime pay, meal and rest breaks, and paid time-off benefits to all non-exempt employees.
The law covers the following:
Minimum wage
The state of Arizona has set a minimum wage for employees and employers are required to pay at least the minimum wage set.
For 2024, the minimum wage to be paid for employees in Arizona is $14.35 per hour.
Overtime pay
Arizona doesn’t have a law for overtime pay. So, employers are required to pay for overtime based on the FLSA. According to FLSA, employees who work more than 40 hours a workweek should be paid an overtime pay of 1.5 times the regular pay rate.
Meal breaks
Arizona doesn't have any law regulating meal breaks. However, according to the US Department of Labor, any breaks under 20 minutes should be paid.
Rest breaks
Arizona doesn't have any law regulating rest breaks. However, according to the US Department of Labor, any breaks under 20 minutes should be paid.
Paid time off and leave
Employers in Arizona need to provide required and non-required leaves for their employees.
| Required Leave | Non-Required leave | |
|---|---|---|
| paid | Unpaid | Paid or Unpaid |
Sick and family leave
| Jury duty leave | Holiday leave |
| Voting time leave | Domestic violence or sexual assault leave for victims of domestic violence, sexual assault, or stalking | Vacation leave |
| Organ and bone donation leaveOrgan and bone donation leave | Military leave | Bereavement leave |
Arizona State payroll taxes 2024
In Arizona, payroll taxes are categorized as follows:
- Arizona Personal Income Tax(PIT)
- Arizona State Unemployment Insurance (UI)
Arizona Personal Income Tax(PIT)
For Taxable Year 2024, Arizona's individual income tax rates vary based on an individual's filing status and income level. Filing statuses include Single, Married Filing Separately, Married Filing Jointly, and Head of Household. As of the current information available, the income tax rate in Arizona for 2024 is 2.50%.
Arizona State Unemployment Insurance (UI)
Arizona has implemented the State Unemployment Tax Act (SUTA) to support individuals facing unemployment by providing unemployment benefits. This law enables the state to collect the requisite funds to administer unemployment insurance benefits to eligible individuals during periods of unemployment.
- In Arizona for the year 2024, SUTA (State Unemployment Tax Act) rates range from 0.05% to 14.03%.
- The taxable wage base is $8,000 for 2024.
- The new employer rate for 2024 is 2.00%.
Arizona payroll tax filing
- Report of New hire Employees
- Report of New hire Independent Contractors
- Arizona personal income tax filing
- Arizona Quarterly Tax and Wage Report (Form UC-018)
Report of New hire Employees
Employers in Arizona are mandated by both Federal and State law to report newly hired and re-hired employees to the Arizona New Hire Reporting Center. As per Arizona state, employers are required to submit new hire reports within 20 days of hiring, re-hiring, or when an employee returns to work. Employers who choose to submit reports electronically or magnetically are instructed to do so in two monthly transmissions, with no more than sixteen days apart between each submission.
Report of Independent Contractors
Arizona employers are not required to report new independent contractors to the Arizona New Hire Reporting Center.
How to report employees new hire in Arizona?
Employers in Arizona have various options for submitting new hire information, offering flexibility in the reporting process.
| Online | Fax | |
|---|---|---|
| Employees New Hire Report | Address Information: PO Box 138003 Sacramento, CA 95813 Public Phone: 888-282-2064 Email: AZ-Newhire@maximus.com Vendor email is not for reporting. | Fax 1: 888-262-0502 |
Arizona personal income tax filing
Taxpayers have until Monday, April 15, 2024, to file their 2023 tax returns or request an extension. If opting for an extension, the extended deadline to file the income tax return is October 15, 2024.
Forms available for filing income tax returns include:
- Resident personal income tax return: Form 140
- Non-resident personal income tax return: Form 140NR
Arizona Quarterly Tax and Wage Report (Form UC-018)
Employers providing unemployment insurance coverage for their workers must fulfill two key obligations:
- Submit Unemployment Tax and Wage Reports (UC-018) for each quarter of coverage, irrespective of wage payments.
- Pay taxes quarterly for periods when taxable wages were disbursed.Upon receiving an Arizona unemployment tax account number, the Department of Economic Security (DES) will automatically dispatch UC-018 forms to the employer during the final month of each quarter. It's essential to note that not receiving a report does not exempt the employer from filing or waiving penalty assessments.
| Reporting Period | Due Date |
|---|---|
| Quarter 1(January, February, March) | April 30 |
| Quarter 2(April, May, June) | July 31 |
| Quarter 3(July, August, September) | October 31 |
| Quarter 4(October, November, December) | January 31 |
Late filings of quarterly reports and payments incur penalties and interest. The penalty for a late report is 0.1% of total wages paid in the quarter, with a minimum penalty of $35 and a maximum of $200. Interest on unpaid taxes accrues at a rate of 1% per month or a portion thereof for each month the payment is overdue.
Processing payroll manually is complex
As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.
Using SecurePayStubs' paystub generator, you can swiftly create pay stubs for your employees and independent contractors, complete with precise federal and Arizona state tax calculations, all within 2 minutes. Effortlessly Generate Pay Stubs with SecurePayStubs' Free Arizona Payroll Calculator: Simply input basic employee and employer details, choose from our range of free pay stub templates, and allow SecurePayStubs to accurately calculate applicable payroll taxes.
Spend less time generating pay stubs and more on your business growth.
This article has been updated from its original publication date of April 9, 2024.