About Unemployment Insurance Tax

In Arizona, the Unemployment Insurance (UI) Program is administered through a federal-state partnership between the U.S. Department of Labor (DOL) and the Department of Economic Security (DES). Arizona employers are required to pay both a federal and a state unemployment excise tax. The federal unemployment tax, called FUTA, is collected by IRS and provides the administrative funding which is appropriated by Congress back to the states through DOL for the administrative costs. The state unemployment insurance tax, called SUTA, is collected by the DES UI Tax Section. SUTA payments are used for the payment of unemployment insurance benefits. These contributions allow eligible individuals to receive Unemployment Insurance Benefits while they seek new employment. Employers are given a tax credit against their federal liability when they are in compliance with and certified by the state’s program. The DES UI Tax section processes over 110 thousand reports and payments quarterly from Arizona employers. The money deposited into the state’s UI Trust Fund is used for the payment of unemployment insurance benefits and the quarterly wage information for each of the employers’ workers is used to establish the wage credits necessary for calculating the amount to which a claimant may be entitled. The DES UI Tax section is also responsible for the integrity of the state’s UI Trust Fund through audit, collections and other monitoring activities.

The information contained within our website has been prepared to provide basic information about the unemployment tax, benefit and appeal provisions of the law, as administered by DES. It includes summary information on other services provided to employers by DES as well as information about withholding taxes as administered by the Department of Revenue. It does not have the force of law, rule or regulation and may be subject to change at any time. If you have questions concerning your rights and responsibilities or general UI Tax questions, Contact Unemployment Insurance Tax for assistance.