Arizona registration and tax info

Before you can pay employees, make sure you've registered for payroll in their applicable work state. This can sometimes take several weeks—the sooner you start the process, the sooner you'll have the tax account info required to pay them. Learn more about paying your first employee in a new state by watching this quick tutorial.

Gusto partners with CorpNet to help you register in the state—learn more below.

Click Register a company with the state agencies on your own or Find account numbers and rate info—the company is already registered with the state to learn more about:

Registering on your own and entering the tax account info in Gusto.
Finding your tax account number(s) and rates and entering them in Gusto.
Third party authorization (TPA) info—TPA is recommended in this state.

Payroll blocked?

Check out our payroll blocked troubleshooting tips article.

Let Gusto's partner register for you

Gusto partners with CorpNet to help you register your business in new states.

How it works

Once a work address has been added in a new state and a new employee has been hired and assigned a work address in that state, you can get registration assistance in Gusto.

Pricing varies by state—get started below and during step 4, you'll review the price, process, and estimated timeline to completion.

Here’s a snapshot of the process:

We’ll collect some basic business information from you.
Gusto and CorpNet will check the information for accuracy.
Your registration application(s) are usually submitted within 3-5 business days.
Check the mail for registration info—the state will typically send your tax account numbers and rates to you directly.

CorpNet can walk you through entering any info that they themselves do not enter in Gusto on your behalf.

Get started with state tax registration

Sign in to Gusto as an admin.
Click the Taxes & compliance section and select Tax setup.
Under “[State name] Tax Setup”, click Have us register for you.
- The state you want to register in will only appear in this location once a work address has been added in a new state and an employee has been assigned a work address in that state.
Review the price, process, and estimated timeline to completion.
- We will not charge you the registration service fee until you send us your order.
Click Continue.
Answer a couple eligibility questions.
- Note: Gusto can only register for you if you don't yet have a state account already.
Click Save & continue.
Enter some company information.
- We’ll pre-populate the information we already have.
Click Save & continue.
Tell us about your responsible party–this is the person who is to be held accountable for the company’s good standing and a point of contact within the organization for tax purposes.
- If you're a nonprofit and run into any issues, check out our FAQ section below for more information.
Click Save & continue.
Enter some state-specific operational information.
Click Save and continue.
Review all information thoroughly–if any information is incorrect it may delay the process.
- Heads up: State and local agencies may charge additional fees and increase the estimated turnaround time shown. CorpNet will let you know if that happens.
Check the box to acknowledge all info is accurate and you agree to the Terms of Service.
Click Send registration order.

After you send your order, we’ll email you with status updates and add your order total to your next monthly invoice.

Check the status of your order

When your order is complete, you’ll receive emails from both Gusto and CorpNet. They’ll detail the next steps which include:

Reviewing registration details
Any other state-specific instructions

Before your order is completed, you can use the link in the state registration confirmation email from Gusto to check the status of your order.

You can also check the status in your Gusto account:

Head to the Taxes & compliance section and select Tax setup.
Scroll to the state's headline.
Click Check the status of your registration.

Cancel your order

If an order is already completed, you'll need to contact CorpNet at [email protected] or 1(888) 449-2638 to cancel. They’re open Monday-Friday from 7am-5pm PT.

If your order is still in progress, you can cancel from your Gusto account:

Head to the Taxes & compliance section and select Tax setup.
Scroll to the state's headline.
Click Check the status of your registration.
On the right-side of the page, under "Changed your mind?", click Cancel your order.
Let us know why you're canceling.
Click Cancel your order.

FAQs

Q: Can I run payroll for my employees before my registration is complete?

A: Not in most cases—you typically need to have a withholding account number and required tax rate(s) in Gusto before you can run payroll.

If you’re registering in a state where there is no income tax withheld, you can use the state-specific “new employer rate” in this article until you receive your company-assigned rate from the agency.

Q: Can I use Gusto to register in a new state if I don't have a Federal Employer Identification Number (FEIN) yet?

A: No–you must have a FEIN entered in Gusto to order a state tax registration.

Q: Where can I see all my tax information?

A: You can see all tax details in the following locations:

Gusto–head to the Taxes & compliance and select Tax setup, and scroll to the applicable state tax setup.
CorpNet–create a CorpNet account and login at any time to review information.
State online account–once you’ve gained access to your agency accounts, your tax details will also be available there.

Gusto’s state tax registration service does not contain tax, legal, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer, HR expert, or accountant for specific guidance.

Q: My company is a nonprofit and I'm unable to enter 0% in the responsible party section, what do I do?

A: Some states have a 1% minimum for the responsible party ownership percentage. Those states are: ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI.

Registration orders will need to be placed directly through CorpNet, outside of Gusto, or you'll need to register directly with the agency yourself.

Click the dropdowns below to learn how to register with state agencies and how to give Gusto the third party access (TPA) we'll need to file and pay certain taxes on your behalf.

Arizona tax agencies

Arizona Department of Revenue (DOR) - income tax withholding
Arizona Department of Economic Security (DES) - unemployment tax

Withholding account registration—income tax

Arizona requires that you start your registration for both withholding and unemployment taxes from the same online site. You can:

Register online—may take 2-3 weeks to complete.
- You'll need to keep that time frame in mind when planning for your first payroll in Arizona.
Register in person at a local Arizona Department of Revenue office—registration is processed the same day.

The two state tax agencies process your application separately, and each agency will notify you once your registration is complete and active.

For unemployment tax, you're not liable until you've paid $1500 in wages in a calendar quarter, or had one employee for part of a day in 20 different weeks in a calendar year.

Register in Arizona online

Visit the AZ Taxes website.
- Both agencies listed above will process the single application separately and notify you after.
- If you're having trouble accessing the site, try using Internet Explorer or Firefox if the browser you're using doesn't load the page.
Locate the "Businesses" section.
Click on Enroll to File and Pay Online.
Review the overview of the registration process—complete registration for the general "AZTaxes" account before proceeding.
- If your business is not licensed or registered, you can create an AZTaxes account here.
Once your general AZTaxes account is created, complete any remaining prompts to register for a withholding account.
After receiving your withholding account number, sign in to your AZTaxes account.
Head to the Link Accounts section and link your withholding account number to your AZTaxes account—detailed instructions can be found here.

If you have any questions regarding your withholding taxes, call the AZ DOR direct at (602) 255-3381.

Enter the tax account information in Gusto

You do not need to enter a company-specific withholding account number in Gusto for us to file and pay taxes on your behalf—we use your federal identification number (FEIN). We will need your unemployment account number and rate.

State unemployment insurance tax (SUI) registration

Your company becomes liable for state unemployment insurance tax once the company has:

Paid $1500 in wages during a calendar quarter or;
Had at least one Arizona-employee working for any part of the week, for 20 or more different weeks during a calendar year.

Running payroll in Gusto before you're liable for SUI

If you need to run payroll and do not yet meet the above requirements, Gusto allows it—we just suggest you add the "New employer SUI tax rate" specific to Arizona in the meantime.

You can find the new employer rates for each state in this article, along with instructions on how to update the rate once you become liable and receive your company-specific agency assigned rate.

You'll want to make sure during registration that the AZ Department of Economic Security is aware of when you plan to become liable—eventually, Gusto will need:

Your unemployment account number—required to file and pay taxes on your behalf.
Your company-specific unemployment tax rate—assigned by the agency.

Register for unemployment tax when you register for withholding tax

Arizona requires that you start your registration for both withholding and unemployment taxes from the same online site. You can:

Register online—may take 2-3 weeks to complete.
- You'll need to keep that time frame in mind when planning for your first payroll in Arizona.
Register in person at a local Arizona Department of Revenue office—registration is processed the same day.

The two state tax agencies process your application separately, and each agency will notify you once your registration is complete and active. For unemployment tax, you're not liable until you've paid $1500 in wages in a calendar quarter, or had one employee for part of a day in 20 different weeks in a calendar year.

Register in Arizona online

Visit the AZ Taxes website.
- Both agencies listed above will process the single application separately and notify you after.
- If you're having trouble accessing the site, try using Internet Explorer or Firefox if the browser you're using doesn't load the page.
Locate the "Businesses" section.
Click on Enroll to File and Pay Online.
Review the overview of the registration process—complete registration for the general "AZTaxes" account before proceeding.
- If your business is not licensed or registered, you can create an AZTaxes account here.
Once your general AZTaxes account is created, complete any remaining prompts to register for both a withholding and unemployment account.

Once you've received your unemployment account number, enter it in Gusto following the steps below.

Enter the tax account information in Gusto

Once a valid Arizona work address has been added in Gusto for one or more employee(s), you can add your tax account information:

Click the Taxes & compliance section and select Tax setup.
Scroll to the "Arizona Tax Setup" headline and select Manage taxes.
Enter your unemployment account number—this is typically a 8-digit number.
- Ex: 12345678
  - If you need to update your rate: follow these steps.
- If you need to update your account number: contact us from the Help section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.

You can always verify your unemployment account number and rate by calling the AZ DES directly at (602) 771-6602.

Third party authorization (TPA) is recommended

In order for Gusto to keep your Arizona tax information up-to-date and help troubleshoot tax issues, we'll need you to authorize Gusto as your third-party agent (TPA) in Arizona. Gusto will become your TPA for the agency below:

The AZ Department of Revenue (DOR)

To become your third-party agent, a notarized form authorizing Gusto as your payroll provider must be submitted to the agency—to make this easy, we’ll prepare the necessary document for you to e-sign in Gusto. Then, we’ll submit the form directly to the agency.

Add Gusto as your third-party agent (TPA) in Arizona

This form will only populate once you’ve assigned an AZ work address to your first AZ employee.

Have the company signatory sign in to their profile in Gusto.
Click the applicable AZ to do item from your Home page.
E-sign the auto-generated Form 821-PSC in Gusto.
- For general information about the form and it’s instructions, click here.
- For existing AZ employers: we used to collect Form 285. If you haven’t already signed Form 285, we may ask you to sign Form 821-PSC.
  - If you’d like to review the new form outside of Gusto, download it here.

We’ll submit this to the agency directly on your behalf—you’re all set for now.

Find account numbers and rate info—the company is already registered with the state

If you've already registered in the state, you'll need to enter your tax account details in Gusto in order to pay employees.

You'll need to be registered with one or more of the below agencies in order for Gusto to file and pay taxes on your behalf:

Arizona Department of Revenue (DOR) - income tax withholding
Arizona Department of Economic Security (DES) - unemployment tax

If you still need to register, click the Register a company with the state dropdown above in this article.

Find your withholding tax account number

Gusto uses your Federal Employer Identification Number (FEIN) to make payments and filings on your behalf—your FEIN should already be linked to your withholding account if you've run payroll in Arizona in the past.

Find your unemployment account number and rate

You can find your unemployment account number and rate by:

Reviewing notices received from the Arizona Department of Economic Security.
- You receive your Unemployment Insurance (UI) rate with an annual notice from the DES and it typically takes effect on January 1 each year.
Giving the AZ DES a call at (602) 771-6602.

Third party authorization (TPA) is recommended

The AZ Department of Revenue (DOR)

Add Gusto as your third-party agent (TPA) in Arizona

This form will only populate once you’ve assigned an AZ work address to your first AZ employee.

Have the company signatory sign in to their profile in Gusto.
Click the applicable AZ to do item from your Home page.
E-sign the auto-generated Form 821-PSC in Gusto.
- For general information about the form and it’s instructions, click here.
- For existing AZ employers: we used to collect Form 285. If you haven’t already signed Form 285, we may ask you to sign Form 821-PSC.
  - If you’d like to review the new form outside of Gusto, download it here.

We’ll submit this to the agency directly on your behalf—you’re all set for now.

Enter the tax account information in Gusto

Once a valid Arizona address has been added in Gusto for one or more employee(s), you can add your tax account information:

Click the Taxes & compliance section and select Tax setup.
Scroll to the "Arizona Tax Setup" headline and select Manage taxes.
Enter the applicable account number(s) and rate(s).

2023 employee withholding and tax setup

2023 tax rates for Arizona withholding have decreased, and they revised withholding percentages for the year. Remind your employees with work locations in Arizona to complete the new Arizona A-4 form in Gusto, which can be found in the Job & Pay section of their employee profile.

We'll also send a reminder to your Arizona employees in their Gusto account with instructions on where they can update their form and withholding rate.

Important reminders

Employees should select their specific rate to avoid over/under withholding
Employees should ideally complete their new form and select their withholding rate before the first 2023 payroll. Otherwise, they will be defaulted to 2% withholding for each paycheck until they select a new withholding option.

Learn more about state and local withholding certificates.

Forms we file in Arizona

Payment of AZ Income Tax Withholding (A1-WP)*
Quarterly Withholding Tax Return (A1-QRT)
Withholding Reconciliation Return (A1-R)
Wage and Tax Statement (State W2)
AZ Report for New Hire
Unemployment Tax and Wage Report (UC-018)

Where to find the forms available in your account

Head to the Taxes & compliance section and select Tax documents. Use the tabs on the page to toggle between federal, state, W-2, and 1099 forms.

Asterisks info—only if applicable

Filings marked with an asterisk (*) are coupons or payment vouchers or other forms that are filed electronically and will not appear in your Tax documents tab.
- Find these in the Agency Payments report.
Filings marked with a double-asterisk (**) are forms that will only be available for January 1st, 2020 and beyond.

Agency websites and contact info

Arizona Department of Revenue (602) 255-3381
Arizona Department of Economic Security (602) 771-6601

Need to close or reopen a tax account? Head to our article on closing and reopening a state or local tax account.