House Bill 2619, which imposes a Special Assessment (SA) on taxable wages paid in 2011 and 2012, becomes law (Arizona Revised Statutes § 23-730.01) effective July 20, 2011, but is retroactively effective to January 1, 2011. The DES Unemployment Insurance (UI) Tax Section is responsible for collecting the SA according to the following provisions.

All employers subject to Arizona UI Tax in 2011 and 2012 are also subject to the SA.

Reimbursement employers are exempt from the SA.

“Taxable wages” are the first $7,000 of gross wages paid to each employee in a calendar year.

The SA rate is 0.40% of taxable wages paid in 2011 (maximum $28 per employee).

The SA rate is projected to be 0.60% of taxable wages paid in 2012 (maximum $42 per employee).

Payment of the SA for the first three quarters of 2011 is due by October 31, 2011.

As a Payroll Experts' client, your tax calculations are updated automatically and the SA will be paid by Payroll Experts on your behalf in accordance with the stipulations for payment.

For more information, contact your Payroll Expert at 480.302.6444 or visit the Arizona Department of Economic Security website at https://www.azdes.gov/main.aspx?menu=316&id=6767