Reporting Wages and Paying Taxes - Late Penalties
Quarterly reports are due on the last day of the month following the end of the previous quarter. If you are late filing, you will still be charged a penalty and interest. Arizona Administrative Code Section R6-3-1703(B)(2) states: "Failure to receive a quarterly Contribution [Tax] and Wage Report form shall not relieve the employer of the responsibility for filing the report."
The penalty for a late report is 0.1% of total wages paid in the quarter; the minimum penalty is $35 and the maximum is $200. Interest on unpaid taxes accrues at 1% of the taxes due per each month, or portion of a month, that the payment is late. You can avoid the late report penalty charge by filing your reports on time, even if you are unable to pay the tax at the time of filing. However, if you cannot pay the tax due, contact the Collections Unit to make payment arrangements. The department may file liens, levy on property, and otherwise enforce collection of overdue amounts. Please refer to Arizona Revised Statutes, Section 23-723.A for the law that imposes this penalty.