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Arizona Compliance and Regulatory Resources

It’s difficult for busy business owners to stay on top of HR compliance. Paychex offers automated compliance notifications, an enhanced HR library, and Arizona resources to help you keep your business compliant.

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State Tax Rates and Limits

State Supplemental Withholding Rate*

0.5% to 3.5%

2026 AZ Withholding Tables

State Unemployment Taxable Wage Base Limit

$8,000

State Unemployment Rate Range for Employers

0.03% to 8.36%

State Unemployment New Employer Rate

2.00%

State Hourly Minimum Wage

$15.15

State Minimum Wage for Tipped Employees

$12.15

Local Jurisdiction(s)

Flagstaff

  • $18.35
  • $18.35 for tipped employees

Tucson

  • $15.45
  • $12.45 for tipped employees

E-Verify

All employers in the state must enroll in and use the E-Verify system for all new hires.

  • Penalties: Noncompliance could result in probationary periods and additional filing requirements, license suspension, and potential permanent revocation of license.

Note to employers: Employers have requirements once enrolled in E-Verify, including but not limited to completion of Form I-9 and its verification (the Three Day Rule). Noncompliance could lead to significant civil fines. Some local municipalities also have E-Verify requirements.


State Tax ID Registration

State Unemployment Insurance (SUI) Registration

Arizona uses a Joint Tax Application where only one tax application is required to register for both withholding and state unemployment insurance (SUI) tax account IDs. Employers are required to have active Arizona tax account IDs to file electronically with the Arizona Department of Revenue (ADOR).

Paychex must be authorized as the Third-Party Administrator (TPA) on the account for filing quarterly returns, remitting payments, and making any adjustments to returns and payments on your behalf. ADOR refers to this access as the Power of Attorney.

Register New Business

  1. Go to the AZTaxes site.
  2. At the bottom of the screen under the Businesses section, select the Enroll to File and Pay Online link to create a new user account.
  3. After creating your account, log into your AZTaxes account:
    • Select the second Apply Now button to apply for a withholding and unemployment tax ID. Make sure you apply for both IDs.
    • You may also need to apply for a Transaction Privilege Tax (TPT) License.
  4. Complete the registration process. Once completed, you’ll receive a registration confirmation page. Print or take a screenshot of the confirmation page for your records.
  5. Once the registration process is complete:
    • The Federal Employer Identification Number (FEIN) will be used as the state withholding tax ID in the format: XXXXXXXXX (9 Digits FEIN).
    • A Determination of Unemployment Insurance Liability will be mailed to you. The Arizona SUI format is XXXXXXXX (8 Digits).
  6. See the Designating Paychex as Your Third-Party Administrator (TPA) section for instructions for assigning Paychex as the TPA for your state withholding account to submit quarterly returns and payments on your behalf.
  7. Enter your new account number in your Paychex Flex® account to ensure that your Paychex account is updated and email your registration confirmation document to your Paychex Service Professional.

Designating Paychex as Your Third-Party Administrator (TPA)

  1. Complete the Power of Attorney (POA) Form.
  2. Email your registration confirmation document and your completed POA to your Paychex Service Professional.

Finding an Existing ID

Your tax ID will be the Federal Employer Identification Number (FEIN) that was registered with the state. You can verify the EIN used in your AZTaxes account.

Reactivating an existing account

Contact the ADOR for assistance; refer to the Additional Resources section for contact information.

Additional Resources


Workplace Safety

ADOSH

Arizona has an OSHA-approved state plan that covers most private-sector workers and all state and local government workers.


Workers' Compensation

Coverage is mandatory for the employers with any employees.


Compliance Insights