How to File Unemployment Taxes in Arizona as an Employer

Paying unemployment tax in Arizona on a regular basis is a requirement for most employers operating in the state that meet certain minimum requirements. Unemployment tax filing in Arizona can be completed online or by mail, though it is recommended that employers take advantage of the online platform. The unemployment tax rate will vary based on the employer’s type of company, employee make-up, and several other factors. Keep reading this short unemployment employer taxes guide to learn about which employers are required to pay and the different methods that employers can use to file payments.

Employer Conditions for Filing Unemployment Taxes in Arizona

When filing taxes unemployed AZ workers’ benefits is something that many employers should take into consideration. “Do employers have to pay unemployment taxes in Arizona?” is a question many business owners may wonder when it comes time to file taxes. Unemployment tax filing in Arizona is not required of all employers. It is necessary only for employers that meet at least one of the state’s minimum conditions. An employer may need to pay these taxes if he or she meets certain conditions. Keep in mind that all eligible employers must pay these taxes regardless of whether their employees claim unemployment benefits or not. Employers paying unemployment tax in Arizona are required to take two steps on a quarterly basis. First, employers must file Quarterly Wage Reports. Second, employers must pay the amount due according to their unemployment tax rates.

Filing Unemployment Taxes Online in Arizona

Knowing how to file unemployment taxes online in Arizona can help employers save time in meeting this legal requirement. Once an employer has determined that he or she is required to file unemployment taxes in Arizona, the employer should make sure he or she has a registered and currently active Unemployment Insurance Tax Account Number. An application should be submitted online or by mail before any other steps are taken for unemployment tax filing in Arizona if the employer does not have this tax ID number. To file unemployment taxes online, all other employers who already have a tax ID can proceed with the following steps:

  1. Sign up for the Arizona Internet Unemployment Tax and Wage System (TWS) online platform. This platform helps you both pay unemployment tax in Arizona and submit Quarterly Wage Reports. To sign up, an employer will need access to his or her Arizona Unemployment Account Number and 6-character password. Both the account number and password are available on an employer’s Unemployment Tax and Wage Report mailed by the UI office on a quarterly basis.

  2. Determine your unemployment tax rate. Once an employer signs up for the TWS system, he or she should receive a Determination of Unemployment Insurance Liability from the Employer Registration Unit through the mail. The calculation of the employer’s given tax rate is clarified in this document as well.

  3. Once the employer has received the unemployment employer taxes guide explaining the tax rate and is able to view his/her up-to-date company information correctly in the profile, the employer can begin submitting a Quarterly Wage Report for all of the company’s workers.

  4. Employers have to pay unemployment taxes in Arizona at the same time that they submit their Quarterly Wage Reports online through the TWS system. Several payment options are available. If an employer filing his or her quarterly report online is unable to pay his/her unemployment tax in Arizona at the same point, he or she can make a payment afterwards for an additional fee.

Even if you are currently appealing a UI claim from a former employee, you are still required to file these taxes.

How to File by Mail

The process for unemployment tax filing by mail in Arizona begins after the employer has applied for and registered his/her Unemployment Insurance Tax Account Number, the same as employers must do for online submission. Also like internet users, an employer submitting unemployment tax in Arizona by mail should wait to receive the Determination of Unemployment Insurance Liability form first. This document will clarify the employer’s unemployment tax rate and provide specific details on how and where to submit Quarterly Wage Reports by mail. When also paying unemployment taxes in Arizona by mail, employers can pay by check or money order. You can find more details of how to file by mail by downloading our comprehensive guide.

Penalties for Late Unemployment Tax Filing in Arizona

If an employer does not file unemployment tax in Arizona, his/her company will face the stipulated penalties. Even if an employer fails to receive the necessary documentation in the mail before the regular due date of the unemployment taxes in Arizona, the company is held liable. Quarterly Wage Reports should be submitted by the last day of the month following the end of the previous quarter.

Failing to pay unemployment tax in Arizona can negatively impact an employer and his/her company in different ways. The amount of the penalty will depend on how much the employer pays in taxes that quarter. Even if unable to make an unemployment tax payment in Arizona, it is recommended that employers submit the Quarterly Wage Report by the due date to avoid penalties solely associated with it. If more than one AZ unemployment tax due date is missed or an overdue amount has been on an employer’s account for a long period of time, the case will be sent to a collections agency.

Download our comprehensive guide today for more in-depth details on how to file unemployment taxes as an employer in Arizona.

What Kinds of Employment Services Does Arizona Offer?

The state of Arizona offers various programs meant to assist residents who have become unemployed. These employment services include unemployment insurance programs and job training initiatives. To learn about how you can apply for unemployment benefits and receive job assistance in Arizona, download our guide today.

Who Is Eligible for Employment Services in Arizona?

Arizona residents that meet certain criteria can qualify to receive employment benefits and training. The state has set job loss standards that determine the eligibility and amount of benefits an individual may be able to receive. To find out if you are eligible for Arizona unemployment benefits, download our guide now.