Both total and taxable wages are reportable on the quarterly Unemployment Tax and Wage Report (UC-018).
Gross wages are the total amount of wages paid to an employee before deductions. This includes, but is not limited to, salaries, wages, commissions, bonuses, overtime pay, incentive awards and tips. All of the types of remuneration that are considered wages for unemployment insurance (UI) reporting purposes are defined in Arizona Revised Statutes, Section 23-622.
Total wages for UI reporting purposes are the total of the gross wages paid.
Taxable wages for UI reporting purposes are the first $7,000 in total gross wages paid to each employee in a calendar year. You must continue reporting employees' wages even after the base of $7,000 for each worker is met. This is because wages reported quarterly are used to establish eligibility for unemployment insurance benefits regardless of whether taxes were due on those wages.
All wages must be reported for the quarter in which they were paid to the worker.