Arizona
What You Must Know
PayCheck Connection eases the administrative burden of operating a small business. For those services that PayCheck Connection does not do for your business, we have provided a vast resource of links on the web to critical information.
Paying Taxes
While PayCheck Connection handles all your payroll taxes to ensure their timely payment, most small businesses are required to pay income tax.
Most business are required to pay business taxes to the Arizona Department of Revenue. The following resources provide guidance to filing and paying business taxes:
Licenses and Permits
Every business needs one or more federal, state or local license(s) or permit(s) to operate. Licenses can range from a basic operating license to a very specific permit.Regulations vary by industry, state and locality, so it's very important to understand the licensing rules where your business is located. Not complying with licensing and permitting regulations can lead to expensive fines and put your business at serious risk.
Employment and Labor Laws
Your employees are your business' most important asset. Hiring and managing employees are important components of running a business, and involve many legal and regulatory issues. As an employer you'll need to know about regulations that cover hiring, wages, work hours, benefits, discrimination and harassment, and workplace safety to name a few. This guide provides a collection of resources that will help you understand federal and state labor laws, which ones apply to you, and how to comply
Employment Discrimination and Harassment
Since the Civil Rights Movement of the early 1960's, federal and state governments have passed a number of laws protecting employees from discrimination based on factors not directly related to the quality of an individual's work. Employers are responsible for understanding anti-discrimination regulations to ensure employees are protected from discrimination and harassment on the job. In addition, employers must keep records
Arizona Rules for Reporting New Hires
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 requires all employers to report newly hired and re-hired employees to a state directory within 20 days of their hire or re-hire date. Visit the Arizona New Hires Reporting page to learn how to register.
Federal Wage and Hour Laws
Here you will find information to help small businesses comply with Federal wage and hour laws.
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, record keeping, and youth employment standards affecting employees.
Federal Downsizing and Layoff Requirements
When your business has to unfortunately downsize or lay employees off, there are resources and assistance the federal government offers to businesses and employees.
The Worker Adjustment and Retraining Notification Act (WARN) protects workers, their families, and communities by requiring employers with 100 or more employees (generally not counting those who have worked less than six months in the last 12 months and those who work an average of less than 20 hours a week) to provide at least 60 calendar days advance written notice of a plant closing and mass layoff affecting 50 or more employees at a single site of employment.
The WARN Act is a federal statute; many states have enacted similar legislation and some of those states require that the provisions of the Act apply to businesses with less than 100 employees.
Federal Workplace Safety and Health
Employers are responsible for protecting the safety and health of their employees. Over the last several decades, laws have been passed to ensure workers are protected from hazards in the workplace such as the Occupational Safety and Health Act of 1970, the Mine Safety and Health Act of 1977, and the Fair Labor Standards Act, which covers rules concerning the employment of young workers.
This guide provides information that helps businesses comply with the Occupational Safety and Health Act of 1970. For information on complying with the Mine Safety and Health Act, visit the Mining and Drilling Industry Guide; and for information on complying with child labor laws, visit the Child Labor Law Guide.
Under the provisions of the Occupational Safety and Health Act of 1970, as the employer, you must provide a workplace free from recognized hazards that are causing, or are likely to cause, death or serious physical harm to your employees regardless of the size of your business. The Occupational Safety and Health Administration (OSHA) was established to create standards and regulations that implement the Act.
As an employer, you must comply with OSHA standards and regulations. The following OSHA resources will help you understand requirements that apply to your business and how to comply.
Workers' Compensation Insurance
Arizona law requires that all Arizona employers with one or more employees maintain workers’ compensation insurance.
The jurisdiction of the ICA includes the responsibility to enforce this law. Consequently, the goal of the Legal Division’s Compliance Unit is to ensure that all Arizona employers comply with the requirement to maintain workers’ compensation insurance. If an employer fails to obtain workers’ compensation insurance, the ICA is authorized to assess civil penalties against the employer.
If an employer continues to disregard the legal requirement to obtain workers’ compensation insurance, the ICA may assess additional civil penalties against the employer, up to $10,000 and may obtain an injunction to close the employer’s business until the employer complies with the law to obtain workers’ compensation insurance.
The ICA may also refer the matter to the Office of the Attorney General or to another law enforcement authority for prosecution of an uninsured employer with a Class 6 Felony for failing to comply with the law requiring workers' compensation insurance.
Arizona Compliance Rules for Environmental Regulation
You may be required to obtain environmental permits and/or comply with other specific environmental regulations if your business could release pollutants into the air, land or water; or if you store, treat, or dispose of hazardous or solid wastes. Not complying with environmental regulations can lead to costly fines. Determine if your business must comply with environmental regulations and permitting requirements by visiting the following resources:
Federal Employee Benefits Requirements
There are two types of employee benefits: (1) those the employer must provide by law; and (2) those the employer offers as an option to compensate their employees. Examples of required benefits include social security and workers' compensation, while optional benefits include health care and retirement. Both required and optional benefits have both legal and tax implications for the employer.
This guide helps employers understand what they need to do to supply employee benefits required by law, as well as steps they need to take to comply with regulations covering optional employee benefit plans.
For requirements specific to third-party employee benefit plan administrators and fiduciaries, visit
Requirements Plan Sponsors, Administrators and Fiduciaries
Arizona Unemployment Insurance Information
Unemployment insurance is an employer-funded program which protects workers against complete loss of wages during periods of involuntary unemployment. Claimants are eligible for unemployment insurance if they meet monetary and personal eligibility requirements.
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