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Updated: May 1, 2024
Did you know that payroll taxes are due quarterly? Luckily, we’re here to help speed up this process for Arizona employers with the payroll calculator at the top of this page. Just enter income and W-4 information for each employee, and the calculator will take care of the rest.
First things first, you gotta pay Uncle Sam his dues. We’ve divided federal payroll taxes into a 6-step overview of what you need to know. If you want to get into all the details, we invite you to check out our step-by-step guide.
Arizona adopted a 2.50% flat income tax starting with the 2023 tax year.
There are no local city payroll taxes.
On the first $8,000 each employee earns in 2024, Arizona employers have to pay unemployment insurance of between 0.07% to 18.78%. All new employers should use a flat rate of 2.0%. This is what you need to pay in full and on time each quarter in order to get a FUTA tax credit.
Most Arizona employers need to have a workers’ compensation policy to protect employees from workplace injuries and illnesses. In our guide to Arizona workers’ comp, learn more about how it helps workers and what the requirements are for employers.
Internal Revenue Service | Pay taxes online | Employment Tax Due Dates | Apply for an Employer Identification Number (EIN) | Forms, Instructions & Publications
Arizona Department of Revenue: (602) 255-3381 | Arizona Withholding Tax | Forms
As a small business owner, there’s always something more on your to-do list. Now, you can check “payroll taxes” off so you can focus on the next item on your list. After each employee’s net pay is calculated (taking deductions and withholdings into consideration) then you’re in the clear!
Just make sure you set aside the taxes you owe for FICA and FUTA taxes so you’re not scrambling come deadline season.
Federal tax filings are due quarterly by filing Form 941. You also have to file a Form 940 annually for your FUTA taxes. But for most employers, taxes must be paid on an ongoing basis via the EFTPS payment system. You can find detailed information about IRS tax due dates here.
These rates are based on local legislation and can change at any time. Always consult a tax professional if you are unsure about your obligations.
The calculator at the top of this page makes it simple to run payroll for employees in the state of Arizona (and figure out any necessary tax deductions that need to be accounted for). But from time to time, employers can run into scenarios where paychecks need a little more wrangling. For example, you may need to issue a final paycheck when an employee leaves. Or, if you reward employees with bonus pay — similar to regular wages — taxes must be withheld. So if you have more math to do, below are some additional calculators to help with crunching the numbers.
Try OnPay out yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.