State guide
How to Register for Arizona Payroll Taxes
Let a dedicated tax manager file your Arizona JT-1 with ADOR and DES and follow up until both numbers arrive, or use the step-by-step guide below.
Last updated:
At a glance
2 agencies: ADOR and DES
1 joint application: Form JT-1
Your EIN is your withholding ID
2.0% new-employer UI rate
Done for you
Rather hand off the JT-1?
Skip the paperwork. Your dedicated PayAdvisors tax manager registers you with the state and gets your tax IDs for you. In Arizona that means your Joint Tax Application, followed up until ADOR has your withholding account open and DES issues your UI number.
- One named person owns your JT-1 from signature to final number
- We prepare the application with you and get the right people to sign
- We follow up with ADOR and DES and deliver your account details ready for payroll
- You stay focused on the business
Hands-on help from a real person you can call or email. Use it on its own or alongside managed payroll.
Quick answer
Arizona payroll tax registration at a glance
Arizona splits payroll taxes between two agencies. The Arizona Department of Revenue (ADOR) handles income tax withholding, and the Department of Economic Security (DES) handles unemployment insurance (UI). One form starts both registrations: the Arizona Joint Tax Application, Form JT-1. ADOR passes a copy to DES, and each agency processes it on its own.
Your Arizona withholding ID is simply your federal EIN once ADOR registers you. Your UI account number arrives separately, on a liability notice DES mails to you. In 2026, a new employer pays UI at 2.0% on the first $8,000 of each employee's wages.
Who registers
When Arizona requires you to register
Arizona uses separate tests for unemployment insurance. These come from the JT-1 itself.
| Type of employer | You owe Arizona UI tax once you |
|---|---|
| Most businesses | Pay $1,500 or more in gross wages in a calendar quarter, or employ at least one person for some part of a day in 20 different weeks of the same year |
| Household (domestic) employers | Pay $1,000 or more in cash wages for domestic work in a calendar quarter |
| Agricultural employers | Pay $20,000 or more in cash wages in a quarter, or employ 10 or more people in 20 different weeks |
| 501(c)(3) nonprofits | Employ 4 or more people in 20 different weeks of the year |
- Withholding has no threshold. Any employer paying wages for work performed in Arizona withholds Arizona income tax and registers its EIN with ADOR.
- Corporate officers are employees. DES treats an officer's wages from the corporation as reportable wages, so an S corporation that pays its owner a salary is an employer for Arizona UI.
- LLC members follow your federal tax election. Members of an LLC taxed as a corporation are reportable. Members of a single-member LLC taxed as a sole proprietorship, or of an LLC taxed as a partnership, are not.
- Nonresidents working in Arizona. Wages of a nonresident who works in Arizona 60 or more days in a calendar year are subject to Arizona withholding. Under 60 days, the employee can elect withholding on Form A-4.
The JT-1
Three ways to file the Arizona Joint Tax Application
Pick one filing route. All three create the same ADOR record, and ADOR forwards your application to DES.
| How you file | What to know |
|---|---|
| Online at AZTaxes.gov | Create an AZTaxes.gov user account first. The JT-1 becomes available once you are enrolled. New Arizona businesses can also start through Arizona Business One Stop. |
| Paper JT-1 by mail | Mail it to the Arizona Department of Revenue, License and Registration, PO Box 29032, Phoenix, AZ 85038-9032. Incomplete applications are not processed. |
| In person | Bring the signed JT-1 to an ADOR office in Phoenix (1600 W. Monroe), Mesa (55 N. Center) or Tucson (400 W. Congress). Do not mail to these addresses. |
Who signs
The JT-1 must be signed by a sole owner, at least two partners, a managing member or a corporate officer legally responsible for the business. Agents and representatives cannot sign it. To let a payroll firm or accountant discuss your accounts with ADOR, file a General Disclosure/Power of Attorney (Form 285).
Special cases
- You already withhold in Arizona but have no UI account: download the JT-1 and email it to the DES Employer Registration Unit (uitstatus@azdes.gov).
- You had a UI account that was closed, or you filed the JT-1 online for TPT, use tax or withholding only: DES lists the Unemployment Insurance Tax application (UIT-1159A) for your situation.
- You bought all or part of an existing business: complete Section F. To take over the previous owner's UI experience for part of a business, request it within 180 days of the acquisition (form UC-247).
Fees
There is no fee for the withholding and unemployment registrations. A transaction privilege tax (TPT) license on the same JT-1 carries its own state and city fees.
The shortcut
One form, two agencies, two numbers to chase
The JT-1 is a single form, but the follow-through spans ADOR and DES, each issuing its own account.
On your own
- JT-1 questions and signatures on your own
- Two agencies to follow up with
- Account numbers tracked by you
With your PayAdvisors tax manager
- Your tax manager prepares the JT-1 with you
- ADOR and DES follow-up handled for you
- Both accounts confirmed, ready for payroll
Hand it off to your tax manager.
Checklist
What the JT-1 asks for
Gather these before you open the application. Required fields are marked on the form, and incomplete applications are sent back.
- Your nine-digit federal EIN. DES cannot process the application without it.
- The legal business name, mailing address and the physical location where employees work (no PO box)
- Full name, Social Security number and title of every owner, partner, corporate officer or managing member
- A NAICS code and a plain description of what the business does
- The date you first hired employees in Arizona, and the quarter they were first hired and first paid
- The quarter you first paid $1,500 in gross wages, or reached your 20th week with an employee
- The first year you owed federal unemployment tax (FUTA), if any, and any IRS ruling excluding services from FUTA
- Any prior Arizona UI account number, and details of a business you acquired
- If your owners control more than 50% of another Arizona business: a list of those businesses and their UI account numbers, or Form 285
What comes back
What you receive, and from whom
Arizona has no single account number. Expect two separate results.
| What you receive | From | Details |
|---|---|---|
| Withholding ID | ADOR | Your federal EIN serves as your Arizona withholding ID once ADOR registers you. |
| UI employer account number | DES | Eight digits, printed on the Determination of Unemployment Insurance Liability (UC-016 or UC-015A) mailed after DES reviews your application. It also shows your coverage start date and tax rate. |
| Online UI access | DES | Once DES finds you liable, set up the Tax and Wage System with your UI account number and FEIN. |
| No letter from DES? | DES | Contact DES to check the status. The Employer Registration Unit is at (602) 771-6602. |
| TPT license, if you also sell taxable goods or services | ADOR | Online: license number the same day and the certificate in 7 to 10 business days. Paper: about two weeks. In person: same day. |
Rates
Arizona payroll tax rates for 2026
Unemployment tax is paid by the employer. Income tax withholding comes out of employee pay at the percentage each employee elects.
| Item | 2026 figure | Notes |
|---|---|---|
| UI rate, new employer | 2.0% | For at least two calendar years, unless you are a successor to another business |
| UI taxable wage base | $8,000 | Per employee per calendar year. Keep reporting all wages after the base is reached. |
| UI rates, experience-rated employers | 0.03% to 8.36% | Set by a reserve ratio; DES sends a Determination of Unemployment Tax Rate (UC-603) each year |
| Income tax withholding | Employee's choice: 0.5% to 3.5% | Elected on Form A-4 as a percentage of gross taxable wages, with an optional extra amount. A zero election is allowed for employees who expect no Arizona tax. |
| Default withholding | 2.0% | Applies when a new employee has not turned in Form A-4 within 5 days of hire |
Gotchas
Arizona registration mistakes we see
Most of these cost money or time only after the first few payrolls.
- Asking your provider to sign. The JT-1 needs a signature from an owner, partner, managing member or corporate officer. A payroll firm can prepare it, but the business has to sign.
- Waiting for a state withholding number. Arizona does not issue a separate one. Once ADOR registers you, you file and pay withholding under your EIN.
- Letting the A-4 slide. If a new hire has not completed Form A-4 within 5 days, you must withhold 2.0%. Employees who elect zero withholding must renew it by February 15 each year, or you return to 2.0%.
- Skipping quarters with no payroll. ADOR expects an A1-QRT even with zero withholding. DES expects a quarterly wage report too, with $0 if needed; after 8 straight quarters of zero wages, DES suspends the account.
- Paying by check once you owe more. An employer that owes $500 or more in a year must pay withholding by electronic funds transfer, or face a 5% penalty on the amount not sent electronically.
- Missing the 180-day window after buying a business. Request a transfer of the previous owner's UI experience within 180 days, or you may start over at the new-employer rate.
Beyond ADOR and DES
Other Arizona employer requirements
These are separate from the JT-1 but start with your first hire.
- Workers' compensation. An employer that regularly hires workers in its usual business must carry workers' compensation insurance, no matter how few workers or whether they are part-time, minors or family members. Coverage comes from a licensed insurer or approved self-insurance, and you post a notice of coverage. See the Industrial Commission of Arizona.
- New hire reporting. Report every new hire, rehire and returning employee to the Arizona New Hire Reporting Center within 20 days, including someone who only works a day.
- Earned paid sick time. Employees earn at least one hour per 30 hours worked. Employers with fewer than 15 employees can cap use at 24 hours a year; 15 or more, at 40 hours.
- Minimum wage, state and city. Arizona's minimum wage is $15.15 per hour in 2026, and tipped employees can be paid up to $3.00 an hour less if tips make up the difference.
- City rates run higher. Tucson ($15.45 in 2026, for work of at least 5 hours per pay cycle in the city) and Flagstaff ($18.35 in 2026, $18.95 from January 1, 2027, no tip credit) set their own rates above the state rate. Set pay by where the work happens.
After you register
Your Arizona filing calendar
Once both accounts are open, these filings repeat every quarter and year.
- Withholding deposits: the schedule depends on your average Arizona withholding over the previous four quarters. Under $200, annual; $200 to $1,500, quarterly; over $1,500, on the same schedule as your federal deposits.
- Quarterly withholding return (A1-QRT): due April 30, July 31, October 31 and January 31. If every payment for the quarter was on time, you get 10 more days.
- Year-end: file the A1-R reconciliation with W-2s electronically by January 31. Annual payers file the A1-APR instead.
- UI wage reports: file the quarterly Unemployment Tax and Wage Report (UC-018) and pay in the Tax and Wage System.
- Rate notices: DES mails annual rate notices; the 2027 notices go out December 31, 2026 and can also be viewed in the Tax and Wage System from mid-January.
- 2027 change for rated employers: experience-rated employers pay 3.15% of their quarterly UI tax liability to a new Unemployment Insurance Operating Fund, with their UI liability reduced by the same 3.15%. New and reimbursable employers are not included, and the fund amount cannot be claimed as a FUTA credit.
How each Arizona payroll tax works after registration: Arizona payroll taxes guide.
Official links
Official Arizona links
Agency sites for forms, filing and help.
- AZTaxes.gov (register, file and pay with ADOR)
- Arizona Joint Tax Application (JT-1)
- ADOR employer withholding obligations
- Form A-4 and instructions
- DES: applying for a UI tax account number
- DES Tax and Wage System
- Workers' compensation for employers (ICA)
- Arizona New Hire Reporting Center
- ADOR: (602) 255-3381. DES Employer Registration Unit: (602) 771-6602 or uitstatus@azdes.gov
Arizona registration questions
What is the Arizona Joint Tax Application (JT-1)?
It is ADOR's single application for transaction privilege tax, use tax, employer withholding and unemployment insurance. It is called joint because both ADOR and DES use it: you file with ADOR, and ADOR sends a copy to DES.
Does Arizona give me a separate withholding account number?
No. Once you register with ADOR, your Arizona withholding ID is your federal EIN.
How do I get my Arizona unemployment account number?
DES mails it on a Determination of Unemployment Insurance Liability (UC-016 or UC-015A) after it reviews your JT-1. If it does not arrive, contact the DES Employer Registration Unit.
Is there a fee to register for Arizona withholding and unemployment?
No. ADOR and DES charge no fee for those registrations. Only a TPT license, if your business needs one, carries license fees.
I am the only employee of my S corporation. Do I register for Arizona UI?
Usually yes. DES treats corporate officers as employees, and the same applies to an LLC that elected corporate tax treatment. A dedicated tax manager can handle the Arizona registrations for you as part of our S corp payroll package.
What is the 2026 new-employer unemployment rate in Arizona?
2.0%, on the first $8,000 of each employee's wages, for at least two calendar years.
Can my payroll provider sign the JT-1 for me?
No. An owner, partner, managing member or corporate officer has to sign. A provider can prepare it and, with Form 285, speak with ADOR for you.
What if an employee never turns in Form A-4?
Withhold 2.0% of gross taxable wages until you receive a completed A-4.
How is registration priced?
Most states issue two IDs, one for withholding and one for unemployment insurance. Pricing depends on the states and accounts involved. We'll quote it on a quick consultation.
Is this tax advice?
No. This page is a general guide to Arizona's registration process, based on ADOR, DES and other official sources. For advice on your own situation, talk to your CPA or tax advisor.
Get in touch
Tell us how we can help with your payroll or HR. A member of our team will reach out shortly.
Other ways to reach us
Monday through Friday
Contact our team
See how we use the details you send in our privacy policy.
Next step
Get your Arizona accounts set up
A dedicated tax manager files your JT-1, follows up with ADOR and DES until both accounts are set up and sends you the details ready for payroll. Share your first payroll date to get started.
About this guide
Last verified and sources
Last verified October 26, 2026 against ADOR, DES, Industrial Commission of Arizona, Arizona statutes and city sources. This guide is general information, not tax or legal advice.
Related
- State payroll tax registration (all states)
- Arizona payroll services
- California payroll tax registration guide
- Texas payroll tax registration guide
- Florida payroll tax registration guide
- New York payroll tax registration guide
- Georgia payroll tax registration guide
- North Carolina payroll tax registration guide
- Illinois payroll tax registration guide
- Washington payroll tax registration guide
- Colorado payroll tax registration guide
- Ohio payroll tax registration guide
- Pennsylvania payroll tax registration guide
- New Jersey payroll tax registration guide
- Virginia payroll tax registration guide
- Michigan payroll tax registration guide
- Massachusetts payroll tax registration guide
- Tennessee payroll tax registration guide
- Indiana payroll tax registration guide
- Missouri payroll tax registration guide
- Maryland payroll tax registration guide
- Oregon payroll tax registration guide
- Utah payroll tax registration guide
- Nevada payroll tax registration guide
- Wisconsin payroll tax registration guide
- Alabama payroll tax registration guide
- Minnesota payroll tax registration guide
- South Carolina payroll tax registration guide
- Louisiana payroll tax registration guide
- Kentucky payroll tax registration guide
- Oklahoma payroll tax registration guide
- Connecticut payroll tax registration guide
- Iowa payroll tax registration guide
- Kansas payroll tax registration guide
- Arkansas payroll tax registration guide
- New Mexico payroll tax registration guide
- Payroll setup for new businesses
- Payroll tax filing and compliance
- S corp payroll
- S corp payroll setup checklist
Sources
- ADOR, Employer Withholding Filing Obligations
- ADOR, Joint Tax Application (Form JT-1) form page
- ADOR, Arizona Joint Tax Application (JT-1/UC-001) and instructions (PDF)
- ADOR, Applying for a TPT License
- DES, Applying for an Unemployment Insurance Tax Account Number
- DES, Arizona Unemployment Tax and Wage System
- DES, Employment Taxes: Calculating Unemployment Taxes
- DES, Unemployment Insurance Tax Rate Chart for 2026 (UIT-0603A)
- DES, Employer Handbook: Employees and Wages
- DES, Unemployment Insurance Operating Fund
- ADOR, Withholding Tax
- ADOR, Form A-4 Employer's Instructions, 2026 (PDF)
- ADOR, Form A-4, Employee's Arizona Withholding Election, 2026 (PDF)
- Industrial Commission of Arizona, Employers' Frequently Asked Questions on workers' compensation (PDF)
- Arizona Revised Statutes 23-902, employers subject to workers' compensation
- Arizona New Hire Reporting Center, Reporting Basics
- Arizona Revised Statutes 23-722.01, new hire reporting
- Arizona Revised Statutes 23-372, earned paid sick time accrual
- City of Tucson, Tucson Minimum Wage Act
- City of Flagstaff, Minimum Wage
- DES, Unemployment: Employer
- DES, Forms for Unemployment Tax
- Industrial Commission of Arizona, 2026 State Minimum Wage Poster (PDF)