On June 30, 2021, Governor Doug Ducey signed Senate Bill 1828 (link is external), which increased the maximum taxable wages from $7,000 to $8,000 for Unemployment Insurance (UI) compensation purposes, effective calendar year 2023. Senate Bill 1828 has already led to significant changes for claimants who receive benefits, including a reduction of the number of weeks for which claimants are eligible for benefits. This legislation also made other changes to the UI program, including additional program integrity requirements.
In Arizona, you are currently required by law to pay UI taxes on the first $7,000 in gross wages paid to each of your employees in a calendar year. Beginning January 1, 2023, you will be required to pay UI taxes on the first $8,000 in gross wages paid to each of your employees.
The increase will be in effect when you file your quarterly Unemployment Tax and Wage Report for the quarter ending March 31, 2023, for wages paid during January, February, and March of 2023.
IMPORTANT: The increase to the taxable wage base does not impact wages paid to your employees during calendar year 2022.
For additional information, including general information about Arizona’s UI Tax program, please call (602) 771-6606.
Slater & Rutherford offers a broad range of professional accounting, tax, and audit services to individuals and businesses throughout Yavapai County and Northern Arizona. With over 40 years combined certified public accounting experience, we specialize in providing services to numerous industry specific areas, including non-profit organizations, homeowner’s associations and construction contracting. We also provide tax planning and preparation, sales tax and payroll tax return preparation, ongoing accounting/bookkeeping, live payroll, and QuickBooks setup and training (QuickBooks Proadvisors). Given our small size, we can still provide a personal touch with professional expertise. Come in and see us anytime at 2086 Willow Creek Road, Prescott, Arizona or call us at 928-778-0079.