Unemployment Insurance is a joint federal-state program authorized by Title 23, chapter 4 of the Arizona Revised Statutes in conformity with applicable provisions of the Federal Unemployment Tax Act. The Department’s Unemployment Tax Section administers a statewide audit program, using an automated process in selecting employers for audit each calendar year to meet U.S. Department of Labor requirements. Audits or investigations are also performed to address specific issues such as those relating to applicants for benefits or employer liability for unemployment insurance taxes.
Unemployment Insurance Tax audit appointment letters will include an Employer Bill of Rights as outlined below. The audit letter will ask for a signature and title information from the employer or designated representative and thatsigned document shall be provided to the auditor at the audit meeting. Also see Preparing for an Unemployment Tax Audit.
The following information is presented in compliance with the Arizona Regulatory Bill of Rights, A.R.S. §41-1001-01, enacted by the Arizona Legislature.
1. Auditors will present a Department issued photo identification upon entry of your business premises.
2. The purpose of the audit or investigation will be explained.
3. A representative of the business can be present during our audit or investigation, except for confidential interviews.
4. Our review can take place at your business site, at the office of your designated representative, or at our audit office.
5. You must maintain true and accurate work records available for inspection and copying by Tax Section auditors, A.R.S. §23-721.
6. Auditors will not take original accounting records or tax documents from your office.
7. Statements made by you, your representative or other workers interviewed may be included in our audit or investigation report.
8. Upon completion of the audit or investigation, auditors will provide, by certified mail to the address of record on file with our Department, determinations of liability, and any tax assessment or adjustments found necessary to correct reporting discrepancies.
9. Legal authority and appeal procedures will be stated on all liability determinations or assessments issued to you upon completion of an audit or investigation.
10. You will have the opportunity for informal settlement or reconsidered determination of audit issues with the Tax Section’s appeals unit.
11. You will have the right to elevate your case for hearing by an independent Administrative Law Judge as provided by A.R.S. §23-724.
12. You have the right to confidentiality regarding tax matters pursuant to A.R.S §23-722.
As an Arizona employer, you have the right to fair and courteous service from all Department personnel.
For information about Unemployment Insurance Tax matters, or if you are dissatisfied with the service you receive, contact our Employer Advocate at [email protected]. If reasonable efforts to resolve a problem with our Agency are unsuccessful, you may also contact the state’s Ombudsman-Citizens Aide at [email protected].
Written notices or other communications from the Department of Economic Security do not constitute legal advice to an employer or are a substitute for legal advice. Legal advice may be obtained only from an attorney representing the employer.