Arizona Unemployment Compensation laws & HR compliance analysis

Arizona Unemployment Compensation: What you need to know

Virtually all employers are subject to unemployment insurance taxes under Arizona’s unemployment law (AZ Stat. Sec. 23-601 et seq.). For example, coverage includes:

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• Anyone who, in the current or preceding calendar year, paid wages of $1,500 in any calendar quarter or employed at least one person for some portion of a day in each of 20 different weeks;

• Employers subject to the Federal Unemployment Tax Act (FUTA);

• Anyone who buys the business of a covered employer or owns or controls two or more businesses that together meet the criteria for coverage;

• Employers of domestic servants that pay $1,000 in wages in any calendar quarter; and

• Employers of agricultural workers that, in either the current or preceding calendar year, employed at least 10 people in 20 different weeks or paid wages of $20,000 or more in any quarter (AZ Stat. Sec. 23-613).

Exceptions to Coverage

The law excludes certain services from coverage, including, for example, services provided by:

• Students working for schools, colleges, or universities;

• Students working for work-study programs (unless when the program was set up to benefit the employer);

• Spouses of students working for the school;

• Real estate and insurance salespersons;

• Cemetery and securities salespersons, income tax preparers, and door-to-door salespersons;

• Hospital interns;

• Certain newspaper distributors; and

• Student nurses (AZ Stat. Sec. 23-617).

Taxable wage base. The taxable wage base is determined each year. For the current taxable wage base, visit https://www.azdes.gov/landing.aspx?id=4214. The term “wages” generally includes the following:

• Commissions;

• Bonuses and fringe benefits; and

• The cash value of noncash remuneration (AZ Stat. Sec. ...

More on this topic:

Who Is Covered?

Payment of Taxes

Benefits

The Claims Process: Reviews, Notifications, and Appeals

Notices and Reports

Additional Information

State Requirements

Arizona Unemployment Compensation Resources

Type	Title
Forms	Employer's Representative Authorization
Handouts	Unemployment Compensation (Handout)
Policies	Unemployment Compensation
Posters	Wisconsin Unemployment Benefits, Notice to Employees About Claiming Poster

See all Unemployment Compensation Resources