To fill out Arizona Form A1-QRT, enter your business information and the quarter you’re reporting in Part 1, report the Arizona income tax you withheld during the quarter in Part 2, then subtract the deposits you already sent to the Department of Revenue from your total withholding liability in Part 3 to arrive at any balance due. The return is filed electronically through AZTaxes.gov and is due within 30 days after the quarter closes.
Before You Start
Pull together your payroll records for the three months covered by the quarter: total gross Arizona wages paid, total state income tax withheld, the number of employees whose compensation was subject to Arizona withholding, and a running total of every deposit you’ve already remitted to the Department of Revenue for that quarter. You’ll also want your federal Employer Identification Number handy. Arizona uses your federal EIN as your state withholding identification number, so there is no separate state account number to look up.1Arizona Department of Revenue. Employer Withholding Filing Obligations
Confirm you’re actually on the quarterly schedule before you start. Employers whose average Arizona withholding over the prior four quarters was more than $200 but no more than $1,500 per quarter file A1-QRT and deposit quarterly. Employers above $1,500 still file A1-QRT, but they deposit on the same schedule they use for federal withholding — monthly, semi-weekly, or next business day. Employers whose average quarterly withholding was $200 or less may qualify to file annually on Form A1-APR instead.2Arizona Legislature. Arizona Code 43-401 – Withholding Tax Rates Election by Employee
The return is due April 30 for Q1, July 31 for Q2, October 31 for Q3, and January 31 for Q4. When a deadline falls on a Saturday, Sunday, or legal holiday, filing the next business day is timely.3Arizona Department of Revenue. Arizona Quarterly Withholding Tax Return
Part 1: Taxpayer Information
Enter your business name, mailing address, and phone number. Enter your federal EIN in the EIN field. Mark the quarter you’re reporting (1, 2, 3, or 4) and the calendar year.
Part 1 also includes four check boxes for situations that change how the return is processed:4Arizona Department of Revenue. Arizona Form A1-QRT Instructions
- Box A, Amended Return. Check this if you’re correcting a previously filed A1-QRT for the same quarter, and complete Part 5 to explain what you’re amending.
- Box B, Address Change. Check this if your business address has changed since your last filing.
- Box C, Final Return. Check this to close out your withholding account. Enter the date you paid final wages and complete Part 6 to explain the reason.
- Box D, Surviving Employer. Check this if you’re filing as a successor employer after a merger or acquisition and the quarter covers fewer than three months of your own operations. Enter the predecessor employer’s name and EIN.
Finish Part 1 by entering total gross Arizona payroll for the quarter on Line E and the number of employees subject to Arizona withholding on Line F.4Arizona Department of Revenue. Arizona Form A1-QRT Instructions
Part 2: Tax Liability Schedule
Part 2 has two sections, and which one you use depends on how often you deposit.
If your average quarterly Arizona withholding over the prior four quarters was $1,500 or less, complete Section A. Enter the total Arizona income tax withheld for the entire quarter on Line A1. One number, done.
If your average exceeded $1,500, complete Section B instead. Enter the withholding for the first month of the quarter on Line B1, the second month on Line B2, and the third month on Line B3. Total those three figures on Line B4.4Arizona Department of Revenue. Arizona Form A1-QRT Instructions
Employers who deposit on a semi-weekly or next-business-day schedule have an extra step: complete Part 4, which breaks down the quarterly withholding liability by the specific day each liability was incurred within each month. Quarterly and monthly depositors skip Part 4.
Part 3: Tax Computation
Part 3 is where the quarter reconciles. Three lines.
Line 1, Total Withholding Tax Liability. Carry over the total from Part 2. For quarterly depositors that’s Line A1; for monthly or semi-weekly depositors that’s Line B4.
Line 2, Payments Made During the Quarter. Enter the sum of every deposit you already sent to the Department of Revenue for this quarter. If you haven’t made any deposits, enter zero.
Line 3, Total Amount Due. Subtract Line 2 from Line 1. A positive number is the balance you owe, and payment is submitted with the return.
One EIN, One Return
If you report federal withholding on Arizona wages on Form 941 and also file Form 945 for non-wage payments under the same EIN, do not file two separate A1-QRTs. The Department of Revenue wants a single A1-QRT per EIN per quarter that reconciles total Arizona withholding for the period.1Arizona Department of Revenue. Employer Withholding Filing Obligations Filing more than one original return for the same EIN and reporting period creates processing problems.
How to Submit the Return
Arizona law requires withholding returns to be filed electronically for taxable years beginning after December 31, 2019.5Arizona Department of Revenue. Arizona Quarterly Withholding Tax Return A1-QRT Instructions Most employers file through AZTaxes.gov: log into your registered withholding account, select the withholding tax option, enter the quarterly figures, review, and submit. Save the confirmation number the system generates — that is your proof of filing. The portal also supports electronic payment of any balance due.6Arizona Department of Revenue. E-File Services Payroll providers and third-party transmitters can file in bulk through AZ Web File (AZFSET) by uploading a .csv file or using the registered transmitter method.7Arizona Department of Revenue. Withholding Highlights
Filing on paper without a waiver triggers a penalty of $100 for each month or partial month the failure continues, up to $500 per return.8Arizona Legislature. Arizona Code 42-1125 – Civil Penalties Definition Waivers are granted case by case — the employer must have no computer, no internet access, or demonstrate another circumstance the director considers worthy. A granted waiver lasts one year and can be renewed once.5Arizona Department of Revenue. Arizona Quarterly Withholding Tax Return A1-QRT Instructions
If you have an approved waiver, mail the paper return to:5Arizona Department of Revenue. Arizona Quarterly Withholding Tax Return A1-QRT Instructions
Arizona Department of Revenue
PO Box 29009
Phoenix, AZ 85038-9009
Use a mailing method with a tracking number or postmark so you have evidence of timely submission.
Don’t Forget Form A1-R
Filing four A1-QRTs does not close out the year. Every employer that files A1-QRT must also file Form A1-R, the annual withholding reconciliation, confirming that total tax withheld during the calendar year matches what was reported across the four quarterly returns.1Arizona Department of Revenue. Employer Withholding Filing Obligations Form A1-R is due January 31 of the following year, the same day as the Q4 A1-QRT. Plan to file both together.