MANY SMALL BUSINESS OWNERS FAIL TO MEET LEGAL REQUIREMENTS PLACED ON THEM BY FEDERAL AND/OR STATE GOVERNMENTS BECAUSE THEY NEVER REALIZED THE REQUIREMENTS EXISTED. HAVING A PROFESSIONAL ASSIST YOU TO MEET YOUR LEGAL OBLIGATIONS CAN SAVE PENALTY & INTEREST FEES, AS WELL AS OTHER COSTS, TIME, AND MENTAL WELL-BEING DRAINED HAVING TO DEFEND YOURSELF. DON'T HESITATE TO CONTACT OUR OFFICE TO SCHEDULE A CONSULTATION TO DISCUSS EMPLOYER REQUIREMENTS WITH ONE OF OUR CPAS.
**NEW IN 2025** THE ONE BIG BEAUTIFUL BILL ACT (OBBBA) INTRODUCED A NEW "NO TAX ON OVERTIME" DEDUCTION. WE SUGGEST ALL EMPLOYERS FAMILIARIZE THEMSELVES WITH THE RULES BY REVIEWING THE NO TAX ON OVERTIME INFO (TAX DOCUMENTS TAB ON THE TOP - GREEN BUTTONS - SECOND ROW MIDDLE). FOR TAX YEAR 2025 FORMS W-2 THERE IS NO REQUIREMENT FOR EMPLOYERS TO CALCULATE AND PROVIDE THE QUALIFIED OVERTIME PREMIUM AMOUNT ELIGIBLE FOR THE DEDUCTION TO THEIR EMPLOYEES. BEGINNING WITH TAX YEAR 2026, THIS AMOUNT IS REQUIRED TO BE INCLUDED ON FORMS W-2, BOX 12, WITH CODE TT. PLEASE REVIEW YOUR PAYROLL SOFTWARE AND BRING EMPLOYEES WHO USE IT UP TO SPEED TO AVOID HAVING TO PLAY CATCH UP LATER IN THE YEAR.
NEW HIRE PACKETS: IF YOU HAVE A NEW EMPLOYEE PLEASE DOWNLOAD THE EMPLOYEE PACKET ABOVE. THE EMPLOYEE SHOULD COMPLETE THE FORMS W-4, A-4, AND I-9. THEY WILL ALSO NEED TO PROVIDE THEIR DRIVER'S LICENSE & SOCIAL SECURITY CARD (OR OTHER QUALIFIED DOCUMENTS) TO ENSURE THEY ARE LEGAL TO WORK IN THE U.S. THESE SHOULD BE COMPLETED AND SUBMITTED TO YOUR PAYROLL SERVICE PROVIDER ON OR BEFORE THE FIRST DAY OF WORK. IN NO CASE SHOULD EMPLOYEES BE PERMITTED TO WORK PRIOR TO COMPLETING AND SUBMITTING THESE TO THE BUSINESS OWNER.
CURRENT ARIZONA LAW REQUIRES ALL EMPLOYERS TO USE THE E-VERIFY SYSTEM TO VERIFY ELIGIBILITY FOR NEW EMPLOYEES. FAILURE COULD RESULT IN SUSPENSION OR REVOCATION OF YOUR BUSINESS LICENSE. IN ADDITION ALL NEW HIRES MUST BE REGISTERED WITH AZ NEW HIRE REPORTING CENTER. ALL EMPLOYERS SHOULD VERIFY THESE REQUIREMENTS ARE MET, BY THEMSELVES OR THIRD-PARTY PAYROLL SERVICE PROVIDERS. WE MAINTAIN AGENT REGISTRATION TO REPORT ON BEHALF OF OUR CLIENTS. IF YOU NEED HELP MEETING THESE REQUIREMENTS PLEASE CONTACT OUR OFFICE.
EFFECTIVE 1/1/26: ARIZONA MINIMUM WAGE INCREASED TO $15.15 PER HOUR.
ARIZONA LAW ALSO REQUIRES ALL EMPLOYERS PROVIDE EARNED PAID SICK LEAVE TO ALL EMPLOYEES. THE MINIMUM AMOUNT OF PAID SICK LEAVE REQUIRED DIFFERS DEPENDING ON THE SIZE OF THE EMPLOYER. ADDITIONAL INFORMATION AND FREQUENTLY ASKED QUESTIONS CAN BE REVIEWED HERE.
VARIOUS FEDERAL AND STATE LAWS REQUIRE EMPLOYERS TO POST PUBLIC NOTICES IN A CONSPICUOUS PLACE WHERE EMPLOYEES WILL SEE THEM. THE LIST OF REQUIRED POSTERS AND THE VERSION OF EACH POSTER CHANGE PERIODICALLY DUE TO LEGISLATION AND FORMAT MODIFICATIONS. ALL REQUIRED POSTERS ARE AVAILABLE FOR FREE DOWNLOAD FROM THE FOLLOWING WEBSITES:
ARIZONA
PAYROLL TAXES MUST BE PAID TO THE IRS, ARIZONA DEPARTMENT OF REVENUE AND ARIZONA DEPARTMENT OF ECONOMIC SECURITY ON TIME IN ORDER TO AVOID ADDITIONAL PENALTIES AND INTEREST. REGISTRATION WITH EFTPS (ELECTRONIC FEDERAL TAX PAYMENT SYSTEM) AND AZTAXES.GOV IS THE BEST WAY TO MAKE PAYROLL TAX DEPOSITS. THESE SYSTEMS ALSO PROVIDE RECEIPTS & REPORTS FOR RECORD KEEPING PURPOSES.
IN ADDITION TO MEETING EMPLOYER REQUIREMENTS BUSINESS OWNERS MUST HAVE A SYSTEM IN PLACE TO COLLECT INFORMATION AND PROVIDE INCOME TAX FORMS TO INDEPENDENT CONTRACTORS. IF YOU ARE UNSURE WHETHER AN INDIVIDUAL IS YOUR EMPLOYEE OR AN INDEPENDENT CONTRACTOR WE STRONGLY URGE YOU TO DISCUSS SPECIFICS OF YOUR CASE WITH ONE OF OUR CPAS. REVIEWS AND AUDITS THAT RESULT IN RECLASSIFICATION (FROM INDEPENDENT CONTRACTOR STATUS TO EMPLOYEE STATUS) RESULT IN VERY EXPENSIVE PENALTIES.
FORM W-9 IS REQUIRED FOR ALL INDEPENDENT CONTRACTORS. THIS FORM COLLECTS INFORMATION NECESSARY TO ISSUE THE REQUIRED FORMS 1099-NEC AT YEAR END. PLEASE DOWNLOAD THE FORM W-9 AT THE TOP OF THE PAGE AND HAVE EACH INDEPENDENT CONTRACTOR WHO PROVIDES YOUR BUSINESS EITHER A SERVICE, OR A COMBINATION OF SERVICE AND MATERIALS, COMPLETE AND RETURN IT TO YOU AS SOON AS POSSIBLE. COLLECTING THESE AT THE END OF THE YEAR (PRIOR TO THE JANUARY 31ST DEADLINE TO ISSUE FORMS 1099) CAN BE DIFFICULT. WE SUGGEST YOU COLLECT THE COMPLETED FORM W-9 FROM EACH INDEPENDENT CONTRACTOR PRIOR TO ISSUING PAYMENT FOR THEIR FIRST SERVICE.
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