Congratulations on your decision to become a new employer in Arizona! You will need a few things in place before you run your first payroll. For Arizona employer registration help, check out our partner, CorpNet.
Federal and Arizona State Tax Accounts
Federal Tax Accounts
Apply for an EIN
Obtain an Employer Identification Number, (also known as an EIN or FEIN), for your business if you do not already have one.
You can easily apply for an EIN with the IRS online. There is no cost to apply for an EIN.
To read more about applying for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN”.
Enroll in EFTPS
Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can register online for the EFTPS.
To find out more about EFTPS, please read our article, “What Is EFTPS?”
Arizona State Tax Accounts
Register Your Business With the State of AZ
In Arizona, you will need to register with the Department of Revenue for your state income taxes (SIT) and the Department of Economic Security for your state unemployment account (SUI).You register with both agencies at the same time by completing an Arizona Joint Tax Application (form JT-1/UC-001) and submitting it to the License & Registration Section of DOR. DOR will then forward a copy to DES.
Both accounts can be acquired by registering online.
Get Your SUTA Rate
You will be given a unemployment taxation rate every year determined by the AZ Department of Economic Security.
Arizona new employer SUTA tax rate is 2.0% for 2026. New employers are assigned the new employer rate for a minimum of two calendar years.
For more information, please visit the AZ Department of Economic Security Unemployment Insurance Tax Rates.
To learn more about SUTA tax, please read our article “What is SUTA Tax?”
State-mandated Requirements
Sign up for Workers’ Comp Insurance
You must have workers’ comp insurance if you have at least 1 employee in Arizona. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Arizona here.
Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, ERGO NEXT Insurance. You can get a free quote with ERGO NEXT here.
Provide Paid Sick Leave
The Arizona paid sick leave law requires that employers provide 1 hour of paid sick leave per 30 hours worked to each employee.
Setting Up Your New Employee
Fill Out Form I-9
Fill out the required Form I-9 for employee work verification. The top half of this form is to be filled out by the employee and the bottom half will be filled out by the employer.
To learn more about Form I-9 please read our article, “Form I-9 In a Nutshell”
Note: You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, please read “What Should Be in an Employee File?”
Have Employee Fill Out Federal Form W-4
Have your new employee fill out Form W-4, Employee’s Withholding Certificate, for federal income taxes.
For more information, read our help article, “What Is a W-4 Form, and What Is it Used for?“
Have Employee Fill Out State Form A-4
You will also need to have your new employee fill out the state withholding Form A-4 for Arizona state income taxes (SIT).
Report New Hires
Arizona employers are required by law to report all new hires online with the Arizona New Hire Reporting Center within 20 days from the date of hire or rehire.
For more information please visit the Arizona New Hire Reporting Center.
Meet Minimum Wage Requirements
Be sure you have met the minimum wage requirements for the Federal Government and the state of Arizona. Arizona’s minimum wage is $15.15 per hour for 2026.
You need to display the minimum wage poster for your employees where they can read it.
Obtain Labor Law Posters
Get annual posters and all federal, state, county, and city labor law updates with Patriot’s labor law poster store, powered by PosterElite!
Once you have all the necessary information, you will be able to set up your payroll for your business.
Please note: You will be required to keep employee payroll records for at least three years. For more information, please read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list for new employers. Please check with your state and federal government for full compliance.
