Payroll Experts - Exceeding Expectations

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. ..

Employers are currently required to pay a flat rate of 6.2% on the first $7,000.00 of each employee’s annual wages for FUTA. Employers receive a credit of 5.4% for paying state unemployment on time, reducing the 6.2% to .8% resulting in an maximum annual FUTA payment of $56.00 for each employee with annual earnings of at least $7,000.00 ($7,000.00 × .8% = $56.00). ..