Starting with wages paid in the 2023 calendar year, the maximum unemployment taxable wage base is increasing to $8,000, up from $7,000, enacted by AZ Senate Bill 1828 and signed by Governor Ducey in 2021.
This increase will be in effect when the Unemployment Tax and Wage Report for the quarter ending March 31, 2023, is filed.
We do not know if the Federal wage base of $7,000 will increase in 2023. Therefore, there could be a wage base difference between the Federal Unemployment Tax (FUTA) and the Arizona Unemployment Tax (SUI).
Those employers who process their own payroll or have a payroll service that processes payroll for them will want to ensure their systems are set up for this Arizona Unemployment wage base increase.
Click the link below to read the announcement from the Arizona Department of Economic Security regarding this 2023 change.