How to Calculate Arizona Unemployment Payroll Taxes
Arizona unemployment benefits provide temporary payments to workers unemployed through no fault of their own. As an employer, you fund this program through your payroll taxes. Your contribution is calculated and paid each quarter based on your total taxable payroll payments and your tax rate. All of the instructions to calculate the taxes owed are listed on the contribution form the Arizona Department of Employment Security (ADES) sends you each quarter.
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Instructions
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1
Total your covered employees wages you paid for the quarter in question, which are those that the Arizona unemployment laws insure.
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2
Subtract any excess wages from the result of Step 1, which are any wages over $7,000 you paid to each employee that year.
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3
Multiple the result of Step 2 by the tax rate printed on the form the ADES mailed you.
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4
Add a 1 percent of total tax due as interest for each month you are late in paying your contribution.
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5
Add an additional .10 percent of your gross covered wages as penalty for each month you’re late filing your contribution.
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Tips & Warnings
The ADES will let you know your tax rate and due date by mailing out the tax contribution form for your organization. The information is located on the top right corner of the form.
It’s possible for you to calculate your unemployment payroll tax contribution on your own. However, if you have a large payroll or you find working with numbers challenging, you should consider using an accounting professional to help you make this calculation.
