Update to Arizona's Unemployment Insurance Tax Program

Via Arizona Department of Economic Security

Arizona’s Unemployment Taxable Wage Base Increased to $8,000

In 2021, Senate Bill 1828 increased the maximum taxable wages from $7,000 to $8,000 for Unemployment Insurance (UI) compensation purposes, effective January 1, 2023. Senate Bill 1828 has already led to significant changes for claimants who receive benefits, including a reduction of the number of weeks for which claimants are eligible for benefits. This legislation also made other changes to the UI program, including additional program integrity requirements.

As of January 1, 2023, you are now required by law to pay UI taxes on the first $8,000 in gross wages paid to each of your employees in a calendar year.

  • The increase will be in effect when you file your quarterly Unemployment Tax and Wage Report for the quarter ending March 31, 2023, for wages paid during January, February, and March of 2023.

Please note that this increase to the taxable wage base does not impact wages paid to your employees during calendar year 2022.

For additional information, including general information about Arizona’s UI Tax program, please visit www.azuitax.gov or call (602) 771-6606.