Withholding Highlights

2018 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

Employers whose 2018 Arizona withholding tax liability was $20,000 or more, or that expect a 2019 withholding tax liability of $10,000 or more, must make Arizona tax payments by electronic funds transfer (EFT). Employers required to make estimated tax payments by EFT must complete the department's electronic funds transfer authorization agreement at least 30 days prior to their first transaction. Go to AZTaxes.gov to register. Click “Enroll to File and Pay Online.” Complete the New User Registration form as directed.”

NOTE: Taxpayers required to make tax payments via EFT that fail 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.

Employers whose 2018 Arizona withholding tax liability was less than $20,000, or who expect a 2019 withholding tax liability of less than $10,000, may elect to participate in EFT.