Unemployment Insurance and Worker’s Compensation
Unemployment Insurance
(The following does not apply to certain nonprofit and governmental employers, Indian tribes and churches/religious organizations that have chosen the reimbursement payment option)
Arizona unemployment tax rates range from a minimum of 0.02 percent to a maximum (ordinarily) of 5.40 percent on the first $7,000 in wages paid to each employee in a calendar year. (An additional 1.0 percent or 2.0 percent surtax may be added if benefits paid exceed taxes paid as a result of participation in the Shared Work program. The usual maximum 5.40% tax rate may be higher when the rate of unemployment in the workforce and volume of unemployment claims have been extraordinarily high.) The actual taxes paid are calculated by multiplying quarterly taxable wages by the tax rate.
Source: https://www.azdes.gov/main.aspx?menu=316&id=3983
Worker’s Compensation
Under Arizona law, it is mandatory for employers to secure workers’ compensation insurance for their employees. Workers’ compensation is a “no fault” system in which an injured employee is entitled to receive benefits for an industrial injury, no matter who caused the job-related accident.
Companies may choose to insure their employees in one of three ways:
- Insuring with SCF Arizona
- Insuring with another authorized carrier
- Qualifying as a self-insurer
Contact Information
Economic Development Office:
Lori M. Gary, CEcD
Economic Development Administrator
16705 E. Avenue of the Fountains
Fountain Hills, AZ 85268
Tel: (480) 816-5109
Fax: (480) 837-3145
Email: lgary@fh.az.gov