E-Services for W-2 / 1099

For businesses, filing electronically is a requirement  for any taxpayer with $125 average quarterly liability for withholding tax during the prior tax year.

Failure to comply with the electronic filing and payment requirements may result in penalties.

The Arizona Department of Revenue (ADOR) has a system that allows registered users to electronically upload W-2 and 1099 data.   

For the 2023 tax year, due January 31, 2024, all W-2s will need to be submitted by one of these online electronic methods.

Employers and payers have the ability to electronically submit

• Arizona Form A1-R or Arizona Form A1-APR, and
• federal Forms W-2, W-2c, W-2G, and supported federal Forms 1099.

For calendar year 2023, the following federal Forms 1099 are accepted electronically: 1099-DIV, 1099-MISC, 1099-S, and 1099-R.

The due date for these submissions is January 31, 2024.

W-2 and 1099 Information

1099-S

Payroll Service Companies

For information on registering as a payroll service company, please see the dedicated page. 

How to file your withholding return electronically

Employers may file Forms A1-R and A1-APR electronically to the Department: 

1. Register at AZ Web File (AZFSET) to bulk-file its return by uploading a .csv file.
2. Register at AZTaxes and use the data input method to submit its return i.e. registered users are able to enter data in an online interactive form. 
3. Registered transmitters of AZ Web File (AZFSET) can bulk file using the transmission method.

Electronically submitting federal Forms W-2, W-2c, W-2G, and 1099 to the Department:

1. Through AZTaxes to use the Manual data input method, or to upload the supported federal forms as a formatted .txt file.
2. Through AZ Web File (AZFSET)to upload the supported federal forms as a .txt file.
3. Registered transmitters of AZ Web File (AZFSET) can bulk-file using the transmission method.

Please Note:

Those filing withholding reconciliation will need to do so via AZTaxes Manual Entry, or register for an AZ Web File account to upload.

Form 1099-S filing deadline for 2023 tax year is April 1, 2024. The filing requirement and layout are available above.

If providing the information by Optical Media, ensure State Income Tax Withheld is included in the file.

ADOR only requires submission of Form 1099 that report Arizona income tax withheld.  Taxpayers only need to submit Form 1099-NEC if there is Arizona withheld.

All federal attachments (including Form 1099-NEC) are due with Arizona reconciliation forms. Arizona reconciliation Form A1-R and Form A1-APR are due January 31 of the calendar year after the wages were paid or payments were made.

If the Arizona Annual Reconciliation form (Form A1-R or Form A1-APR) was filed electronically, any federal attachments mailed to the Department (Optical Media or paper) should be attached to a paper Form A1-T. 

Extensions may be requested/granted. Information regarding extensions is available here. 

Arizona does not offer a general withholding electronic filing or electronic payment waiver. Please see ADOR online tutorials for specifics on the data input or upload methods of electronically filing.

Resources

Payroll Service Providers

Withholding Tax

Publication 701

Registration and Transmission of W-2 and 1099 Files

Withholding Tutorials and FAQs

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