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Updated: May 30, 2023
Arizona is a state stereotyped for cacti galore and long summers that sizzle deep into autumn. But locals know it has far more to offer than 115-degree summer heat and an abundance of swimming pools. The state has crisp winter mornings that cut through your winter coat and people from all walks of life, from hibernating snowbirds to budding college students. And its greatest claim to fame is how it got its nickname as The Grand Canyon State.
Did you know that payroll taxes are due quarterly? Luckily, we’re here to help speed up the process. Your small business may be your own world wonder, but don’t let payroll taxes take as long as it took for the Grand Canyon to form. Let’s face it, 6 million years might make your taxes a little overdue.
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 income taxes are broken down into five brackets based on income with rates ranging from 2.59% to 4.50%. Employees who are married or the head of the household, the income tax brackets are doubled while the rates remain the same.
There are no local city payroll taxes.
On the first $8,000 each employee earns in 2023, 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.