Pursuant to A.R.S. § 43-418(C), payroll service companies must comply with certain statutory requirements concerning withholding taxes. By registering as a payroll service company, you agree to:

1. Be authorized in writing to act on behalf of each client
2. Keep clients' money held for payment of state withholding taxes separate from the money of the payroll service company
3. Timely make all withholding tax payments electronically
4. Timely file all withholding tax returns electronically
5. Electronically provide a client list to the Department including the name, address, tax identification number and federal deposit frequency of each client
6. Update the client list by the first of every month
7. Provide a copy of a contract with a client upon Department request
8. Comply with all other requirements as set forth in the statute or administrative rule.

Check here to agree to these statutory requirements. You cannot register without agreeing to these statutory requirements.

The Department can disclose confidential taxpayer (client) withholding tax information to a payroll service company that is authorized, in writing by the taxpayer, to receive that information. This authorization can be accomplished in several ways, including Arizona Form 285, Arizona Form 821 or Arizona Form 821-PSC. Generally, the authorization must be on file with the Department.

To ease the administrative burden for both the payroll service company and the Department, a payroll service company may enter into a Memorandum of Understanding (MOU) with the Department. The MOU will allow the payroll service company to keep the authorizations on file at the payroll service company's office and provide them to the Department only upon request.

Click here to view the MOU. If you would like to enter into an MOU with the Department, print, sign and mail the completed MOU to the department with the payroll service company's registration signature card.