Country Payroll Guide USA – Arizona

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Key Facts

Capital
Phoenix
Date format
mm/dd/yyyy
Currency
United States Dollar (USD)
VAT
the standard rate is 5.6%

Contributions

Employers

Unemployment (State)
Unemployment (State) - 0% to 20.06%
Unemployment - New Employer (State)
Unemployment - New Employer (State) - 2%
FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2%
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45%
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6%
Total Employment Cost
Total Employment Cost - Up to 33.71%

Employees

FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2%
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45%
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6%
Total Employee Cost
Total Employee Cost - up to 14.55%

Minimum Wage

Minimum Wage
The minimum wage in Arizona is 12.15 USD per hour.

Payroll

Payroll Cycle
Bi-Monthly
13th Salary

There are no statutory laws on 13th salary.

Income Tax

Employee Income Tax (1)
0 – 26,500 USD - 2.59%
Employee Income Tax (2)
26,501 – 53,000 USD - 3.34%
Employee Income Tax (3)
53,001 – 159,000 USD - 4.17%
Employee Income Tax (4)
Over 159,001 USD - 4.5%

Working Hours

General Working Hours

40 hours per week.

Overtime

Overtime must be paid at a minimum of 150% of the employee’s regular wage.

Leave

Paid Time Off

There are no statutory laws regarding annual leave in Arizona.

Public Holidays

10 public holidays.

Sick Days
  • Employers with 15 or more employees – Employees accrue one hour of paid sick time for every 30 hours worked. Paid sick leave is capped at 40 hours per year unless the employer sets a higher limit.
  • Employers with fewer than 15 employees – Employees accrue one hour of paid sick time for every 30 hours worked. Paid sick leave is capped at 24 hours per year unless the employer sets a higher limit.
Maternity Leave

The Family Medical Leave Act (FMLA) provides certain employees with up to 12 weeks of unpaid, job-protected leave per year or certain family and medical reasons (maternity leave, serious illnesses or if the employee needs to care for a spouse or child).

Employers are required to maintain the employees’ health benefits during their leave and keep their job open. Employees are eligible for leave if they have worked for their employer at least 12 months, at least 1,250 hours over the past 12 months, and work at a location where the company employs 50 or more employees within 75 miles.

Whether an employee has worked the minimum 1,250 hours of service is determined according to the Fair Labor Standards Act.

Paternity Leave

Paternity leave can fall under FMLA.

Parental Leave

Parental leave can fall under FMLA.

Other Leave

Not applicable.

Termination

Termination Process

Arizona is an at will State, meaning termination procedures are only required if it is stated in the employee’s collective bargaining agreement.

Notice Period

Notice period is not required.

Severance Pay

Arizona law does not require employers to provide severance but may do so at their own discretion.

Probation Period

Three months.

Visa

Employment Visa

In general, work visas are based on a specific offer of employment. In most cases, a petition must be filed and approved by the United States Citizenship and Immigration Services (USCIS) before applying for the visa at a U.S. Embassy.