The Arizona Department of Revenue has revised Publication 622, Business Basics: A Guide to Taxes for Arizona Businesses. There are a few changes of which taxpayers should take note:
- Explanation of accounting credit for reporting sales – only applicable to state transaction privilege tax or severance tax
- Section added regarding use tax to be paid for merchandise purchased as an exempt sale for resale that is subsequently used by the business and on purchases from an out-of-state vendor for use in Arizona
- Explanation of reporting transaction privilege tax – including changes that affect the TPT license and making payments via EFT
- Information regarding the waste tire fee
- Further explanation regarding withholding requirements:
- Withholding of Arizona income tax is required for retailers; and lessors registered with ADOR who sell businesses or individuals who hire employees
- Withholding percentages are based on gross taxable wages. “Gross taxable wages” is the amount that meets the federal definition of “wages” contained in Internal Revenue Code § 3401
- Generally, gross taxable wages are reported in box 1 of the employee’s federal Form W-2 at the end of the calendar year
The publication also contains contact information for relevant agencies in Arizona involved in employer reporting.
