Arizona New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Obtain an Employer Identification Number, (also known as an EIN or FEIN), for your business if you do not already have one.
- You can easily apply for an EIN with the IRS online. There is no cost to apply for an EIN.
- To read more about applying for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN”.
- Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can easily register online. You will need to have this account to make tax payments online or view any tax filings made on your behalf by Patriot if you are a Full Service Payroll customer.
- To find out more about EFTPS, please read our article, “What Is EFTPS?”
State of Arizona Tax Accounts:
- In Arizona, you will need to register with the Department of Revenue for your state income taxes (SIT) and the Department of Economic Security for your state unemployment account (SUI).
- Both accounts can be acquired by registering online.
- You will be given a unemployment taxation rate every year determined by the AZ Department of Economic Security.
- Arizona new employer SUTA tax rate is 2.0% for 2022. New employers are assigned the new employer rate for a minimum of two calendar years.
- For more information, please visit the AZ Department of Economic Security Unemployment Insurance Tax Rates.
- To learn more about SUTA tax, please read our article “What is SUTA Tax?”
Setting Up Your New Employee:
- Fill out the required Form I-9 for employee work verification. The top half of this form is to be filled out by the employee and the bottom half will be filled out by the employer.
- To learn more about Form I-9 please read our article, “Form I-9 In a Nutshell”
- Note: You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, please read “What Should Be in an Employee File?”
- Have your new employee fill out Form W-4, Employee’s Withholding Certificate, for federal income taxes.
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know”
- You will also need to have your new employee fill out the state withholding Form A-4 for Arizona state income taxes (SIT).
- Arizona employers are required by law to report all new hires online with the Arizona New Hire Reporting Center within 20 days from the date of hire or rehire.
- For more information please visit the Arizona New Hire Reporting Center.
- Be sure you have met the minimum wage requirements for the Federal Government and the state of Arizona. Arizona’s minimum wage is $12.80 per hour for 2022 and will increase annually based upon a cost of living formula.
- You need to display the minimum wage poster for your employees where they can read it.
Once you have all the necessary information, you will be able to set up your payroll for your business.
Please note: You will be required to keep employee payroll records for at least three years. For more information, please read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions. We are here to help!