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You can report new hires through the Arizona New Hire Reporting Center by providing details such as the employee's name, Social Security number, address, and the date they first performed services for pay. Reports can be submitted electronically, by fax, or by mail.

An Arizona new hire report must be submitted within 20 days of an employee’s hire date. This requirement applies to newly hired and rehired employees and is part of Arizona new hire reporting requirements. Submitting the report on time helps employers maintain compliance with state reporting requirements.

Arizona Form A-4 is the Withholding Percentage Election form. All new employees must complete this form within five days of employment to determine the amount of state income tax to withhold from their wages. If an employee fails to submit the form, the default withholding rate is 2.0%.

Employers use Arizona Form A1-QRT to report Arizona income tax withheld from employees’ wages. Employers can file Form A1-QRT online through the Arizona Department of Revenue’s e-Services portal or submit it by mail or fax, depending on the filing method available to the employer.

The deadline to file Form A1-QRT is the last day of the month following each quarter:

• Q1: April 30
• Q2: July 31
• Q3: October 31
• Q4: January 31

If the due date falls on a weekend or legal holiday, the next business day will be considered the filing deadline.

For 2026, Arizona’s unemployment insurance taxable wage base is $8,000 per employee per calendar year. Employers pay state unemployment insurance taxes on the first $8,000 of each employee’s wages. Wages above this amount are not subject to UI tax, but employers must still report all wages on the quarterly wage report.

The 2026 Arizona UI tax rates are:

• New employers: 2.0%
• Experienced employers: 0.03% to 8.36%, depending on the employer’s reserve ratio and claims history
• Employee contribution: 0.0% — Arizona UI taxes are paid entirely by the employer.

Employers must submit quarterly Unemployment Tax and Wage Reports (UC-018) through the Arizona Unemployment Tax and Wage System. Even if no wages were paid, reports must be filed to maintain an active account.

Late filing or payment of Arizona withholding tax reported on Form A1-QRT can result in penalties based on how late the return or payment is.

A return filed after the due date is subject to a 4.5% penalty of the tax due for each month or fraction of a month, up to a maximum of 25%. If the tax is not paid by the due date, a 0.5% penalty applies for each month, with the total late-payment penalty capped at 10%.

The deadline to file Form UC-018 is the last day of the month following each quarter:

If the due date falls on a weekend or legal holiday, the next business day will be considered the filing deadline.

To correct errors on a UC-018 form, submit a corrected report through the Arizona Unemployment Tax and Wage System. Adjustments must be made in the correct quarter, and negative amounts should not be used on subsequent reports.