Withholding Highlights

2019 HIGHLIGHTS

Withholding Return Due Dates

The due date for filing and Form A1-APR and A1-R is January 31 of the following year. Any payment due with these reconciliation forms is also January 31 of the following year.

 

Arizona Form A1-C

Employers that permitted employees to reduce their income tax withholding and have those amounts forwarded to qualifying organizations are no longer required to submit Arizona Form A1-C, Arizona Charitable Withholding Statement to the department.

Employers must continue to report contributions made by their employees to qualifying organizations, school tuition organizations, and/or public schools. (Those employers may use the optional Arizona Form A1-QTC, Quarterly Payment of Reduced Withholding for Tax Credits, or their own form or letterhead.)

 

Electronic Funds Transfer

Withholding returns shall be filed electronically for taxable years beginning from and after December 31, 2019, or when the department establishes an electronic filing program. Any employer who is required to file its withholding return electronically may apply to the director for an annual waiver from the electronic filing requirement. The waiver may be granted, which may be renewed for one subsequent year, if any of the following apply:

  • The employer has no computer.
  • The employer has no internet access.
  • Any other circumstance considered to be worthy by the director.

To request a waiver, submit Form 292, Electronic Filing and Payment Waiver Application, to the department. Form 292 is available at: https://azdor.gov/forms/other-forms/electronic-filing-and-payment-waiver-application.

A waiver is not required if the withholding return cannot be electronically filed for reasons beyond the employer’s control, including situations in which the employer was instructed by either the Internal Revenue Service of the
Arizona Department of Revenue to file by paper.

 

Electronic Funds Transfer

Employers are required to pay their tax liability by electronic funds transfer (EFT) if the corporation owes:

  • $10,000 or more for any taxable year beginning from and after December 31, 2018 through December 31, 2019,
  • $5,000 or more for any taxable year beginning from and after December 31, 2019 through December 31, 2020,
  • $500 or more for any taxable year beginning from and after December 31, 2020.

 

An employer may apply to the director for an annual waiver from the electronic payment requirement. The application must be received by December 31 of each year. The director may grant the waiver if any of the following applies:

  • The employer has no computer.
  • The employer has no internet access.
  • Any other circumstance considered to be worthy by the director exists, including:
    • The employer has a sustained record of timely payments, and
    • The employer has delinquent tax accounts with the department.

 

To request a waiver, submit Form 292, Electronic Filing and Payment Waiver Application, to the department. Form 292 is available at: https://azdor.gov/forms/other-forms/electronic-filing-and-payment-waiver-application.

NOTE: A corporation who is required to pay by EFT but who fails to do so is subject to a penalty of 5% of the amount of the payment not made by EFT. See A.R.S. § 42-1125(O).
For additional information on electronic funds transfer, refer to A.R.S. § 42-1129 and the related Arizona Administrative Code rules (A.A.C. R15-10-301 through R15-10-307) for detailed information.

NOTE: An employer who is required to pay by EFT but fails to do so are subject to a penalty of 5% of the amount of the payment not made by EFT. See Arizona Revised Statutes (A.R.S.) § 42-1125(O). For additional information on electronic funds transfer, refer to A.R.S. § 42-1129 and the related Arizona Administrative Code rules (A.A.C. R15-10-301 through R15-10-307) for detailed information.