How to Apply for an Arizona Unemployment Tax ID Number

To get an Arizona unemployment tax ID number, file the Arizona Joint Tax Application (Form JT-1/UC-001) online at AZTaxes.gov. The application registers you with both the Arizona Department of Economic Security (DES) and the Arizona Department of Revenue in one submission.1Arizona Department of Economic Security. Applying for an Unemployment Insurance Tax Account Number Once DES processes your application and confirms you’re liable for unemployment insurance taxes, it mails you a Determination of Unemployment Insurance Liability containing your eight-digit UI Employer Account Number and your initial tax rate.2Arizona Department of Revenue. Employer Withholding Filing Obligations – Section: Arizona Unemployment Insurance Employer Account Number

When You Actually Need to Register

Not every new business needs a UI account on day one. Under Arizona Revised Statutes Section 23-613, you become a liable employer when you employ at least one person for 20 or more weeks in a calendar year, or when you pay $1,500 or more in gross wages during any calendar quarter in the current or preceding year.3Arizona Department of Economic Security. Notice – Arizona Department of Economic Security Whichever trigger you hit first is the one that counts, and once you’re liable you stay liable.

Household employers follow a different threshold. If you hire domestic workers such as housekeepers or nannies, you become liable once you pay $1,000 or more for domestic services in a single calendar quarter.4Arizona Department of Economic Security. Unemployment Insurance Tax – Employees and Wages FAQ

These thresholds apply only to actual employees, not independent contractors. Misclassifying a worker can leave you with back taxes and penalties, so if you direct how the work gets done rather than just the result, that person is likely an employee regardless of how your agreement labels them.5Internal Revenue Service. Employee (Common-Law Employee)

What to Have Ready Before You Apply

You need a federal Employer Identification Number (EIN) first. The Joint Tax Application requires it, and the system won’t process your registration without one.6Internal Revenue Service. About Form SS-4, Application for Employer Identification Number (EIN) If you’re forming an LLC, partnership, or corporation, finish your state entity formation before applying for the EIN to avoid processing delays.7Internal Revenue Service. Get an Employer Identification Number

With your EIN in hand, gather:

  • Your legal business name, physical address, and mailing address.
  • Your business structure (sole proprietorship, partnership, LLC, or corporation).
  • Full names, Social Security numbers, and titles for all owners, partners, corporate officers, or managing members.
  • The date you first hired or will hire employees in Arizona, and the quarter in which you first paid or expect to pay wages.
  • The date you first paid or expect to pay $1,500 or more in gross wages in a single calendar quarter.

These fields are all marked as required on Form JT-1/UC-001.8Arizona Department of Revenue. Arizona Joint Tax Application JT-1/UC-001

Filing the Joint Tax Application

Go to AZTaxes.gov and create a user profile with your name, phone number, and email address. That email becomes your username for the portal.8Arizona Department of Revenue. Arizona Joint Tax Application JT-1/UC-001 The application is called Joint because a single submission registers you for both employer withholding tax with the Department of Revenue and unemployment insurance with DES.9Arizona Department of Revenue. Joint Tax Application for a TPT License Under the license type section, check the box for Withholding/Unemployment Tax and complete Section E, which covers the employment-specific questions.

After you submit, the Department of Revenue and DES process their portions separately, and each agency sends its own correspondence. DES reviews your application against the liability thresholds and, if you meet them, mails the Determination of Unemployment Insurance Liability with your eight-digit account number and assigned tax rate.2Arizona Department of Revenue. Employer Withholding Filing Obligations – Section: Arizona Unemployment Insurance Employer Account Number Allow several weeks after submission.

Finding a Number You Already Have

If you registered previously and can’t find your number, don’t file a new application. Your eight-digit DES Employer Account Number is printed at the top of any prior quarterly report (Form UC-018) and appears on official DES correspondence, including the original liability determination and annual rate notices.

If no paperwork is handy, call the DES Employer Registration line at (602) 771-6602.10Arizona Department of Economic Security. Contact Unemployment Tax – General Information Have your federal EIN ready, since DES uses it to pull up your account by phone. The office is open Monday through Friday, 8:00 a.m. to 5:00 p.m. Mountain Standard Time, excluding state holidays.

What Your New Account Commits You To

New employers are assigned a flat UI tax rate of 2.00% until DES has enough claims history to calculate an experience rate.11Arizona Department of Economic Security. UIT-0603A – Unemployment Insurance Tax Rate Chart For 2026, the taxable wage base is $8,000 per employee, so you only owe UI tax on the first $8,000 in gross wages paid to each worker in the calendar year. Wages above that are reported as excess wages on your quarterly report but aren’t taxed.12Arizona Department of Economic Security. UC-018 – Unemployment Tax and Wage Report At 2.00% on $8,000, the maximum annual UI tax per employee is $160.

Once your account is active, you’re required to file the Unemployment Tax and Wage Report (Form UC-018) every quarter, even for quarters with no wages — a zero-wage report is still filed.12Arizona Department of Economic Security. UC-018 – Unemployment Tax and Wage Report Reports for Q1, Q2, Q3, and Q4 are due April 30, July 31, October 31, and January 31 respectively, and you file electronically through the Arizona Unemployment Tax and Wage System at uitws.azdes.gov.13Arizona Department of Economic Security. Reporting Wages and Paying Taxes – Schedule Late reports carry a penalty of 0.1% of quarterly wages (minimum $35, maximum $200), plus interest of 1% per month on unpaid taxes.14Arizona Department of Economic Security. Reporting Wages and Paying Taxes – Late Penalties

Your Arizona account handles only the state side. Federal unemployment tax (FUTA), reported annually on IRS Form 940, is 6.0% on the first $7,000 of each employee’s wages, but paying your Arizona UI taxes in full and on time earns a credit of up to 5.4%, dropping the effective FUTA rate to 0.6%.15Internal Revenue Service. Topic No. 759, Form 940, Employers Annual Federal Unemployment (FUTA) Tax Return Falling behind on Arizona quarterly payments can cost that credit, so staying current on the state account matters for both bills.