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                                                                                                                      Arizona Form 
2022    Arizona Withholding Reconciliation Return                                                                                  A1-R 
For information or help, call one of the numbers listed:                          Each employer pays the tax withheld to the Arizona Department 
Phoenix                                                    (602) 255-3381         of Revenue (department) using the deposit schedule that applies 
                                                                                  to that employer. 
From   area codes 520 and 928, toll-free                   (800) 352-4090          
Tax forms, instructions, and other tax information                                Why  is Form A1-R filed? 
If you need tax forms, instructions, and other tax information, go                Form A1-R is  an  annual return  filed to summarize the  total 
to the department’s website atwww.azdor.gov.                                      compensation paid and the Arizona income tax withheld for each 
Withholding Tax Procedures and Rulings                                            employee during the calendar year.    
These instructions may refer to the department’s withholding tax                  Who  Must File Form A1-R 
procedures and rulings for more information.  To view or print                    Employers that file Form A1-QRT must file Form A1-R to 
these, go to our website and select Reports & Legal Research from                 reconcile the amount of tax withheld during the year to the amount 
the  main  menu,  then click on     Legal Research  and  select a                 of tax liability reported during the year.  In addition, Form A1-R is 
Document    Type and a Category from the drop down menus.                         used to transmit federal Forms W-2 and W-2c reporting Arizona 
Publications                                                                      wages paid and/or Arizona income tax withheld, and federal Forms 
To view or print the department’s publications, go to our website,                 W-2G and 1099 reporting Arizona income tax withheld.   
select Reports & Legal Research from the main menu, and click                     NOTE:   Employers that file  Form A1-APR,             Arizona Annual 
 onPublications in the left hand column.                                           Payment Withholding Tax Return, should not file Form A1-R.             
                                                                                  IMPORTANT: Arizona Form A1-R is an information return.  Do 
                General Instructions                                              not submit any withholding tax amount(s) owed or try to claim a 
Arizona law requires employers 1to withhold Arizona income 
                                                                                  refund with  this  return.   To pay additional  withholding tax 
tax from:                                                                         amounts, or to claim a refund, file amended quarterly withholding 
•   The payment of wages, salary, or bonus to any employee                        tax Forms A1-QRT. 
    whose compensation is  for services performed  within 
    Arizona, unless those  wages are exempt from  Arizona                         Electronic Filing of Withholding Tax Returns 
    income tax withholding;                                                       Arizona  Revised  Statutes (A.R.S.) § 43-323(F)  provides that 
•   The premature  withdrawal of state  and local retirement                      withholding returns shall be filed electronically for taxable years 
    contributions;                                                                beginning from and after December 31, 2019.   
•   Pensions; and,                                                                For 2022, the department currently has           three methods by which 
•   Payments of prize winnings subject to federal withholding                     employers may file Form A1-R electronically: 
    under Internal Revenue Code (IRC) §§ 1441 or 3402(q)                          •   An employer may register at 
    from2:                                                                            https://efile.aztaxes.gov/AZFSETPortal [AZ Web File 
    o     The Arizona state lottery commission,                                       (AZFSET)] to bulk-file its return by uploading a .csv file.  
    o     Arizona sanctioned horse or dog racing,                                 •   An employer may register at 
    o     A fantasy sports operator, or,                                              https://aztaxes.gov/Home/Page (AZTaxes) and use the 
    o     An event wagering operator                                                  data input method to submit its return.  
At the request of the individual receiving the payment, Arizona                   •   Registered transmitters of AZ Web File (AZFSET) can bulk-
income tax may be withheld from the following:                                        file using the transmission method. 
•   Retired or retainer pay for service in the military or naval                  Submitting Federal Forms W-2,  W-2c,  W-2G  and 
    forces of the United States;                                                  1099 to the Department 
•   Payments under the United States civil service retirement                     Federal Forms W-2 and W-2c, W-2G and 1099 are an integral part 
    system  from the United States  government service                            of the reconciliation process for Arizona Form A1-R.  
    retirement and disability fund;                                               •   Submit all federal Forms  W-2 and  W-2c reporting 
•   Pensions;                                                                         Arizona  wages  paid and/or  Arizona income tax 
•   Traditional Individual Retirement Accounts;                                       withheld. 
•   Any other annuity;                                                            •   Submit all federal Forms W-2G and/or 1099 reporting 
•   Unemployment compensation; and                                                    Arizona income tax  withheld.  Federal Forms  W-2G 
•   Out-of-state wages earned by an Arizona resident, if the                          and 1099 NOT reporting Arizona income tax withheld 
    employer and the employee agree to  withhold Arizona                              are not required to be submitted to the department. 
    income tax.                                                                   For calendar year 2022, an employer may submit federal Forms 
For additional information on withholding requirements, refer                     W-2, W-2c, W-2G, or 1099 to the department by: 
to the Employer’s Instructions  for the Employee’s  Arizona                       •   Logging into  AZTaxes at   https://aztaxes.gov/Home/Page             
Withholding Election (Form A-4 Instructions).                                         to use the data input method, or to upload the supported 
                                                                                      federal forms as a .txt file.   
                                                           
1 Arizona law provides that all amounts withheld are to be treated as if the      employees,  beneficiaries  or  payees.    Similarly,  “employee(s)”  includes 
withholding was from wages  paid  to an  employee.   For  ease of  reading,       employees, recipients, beneficiaries and payees. 
“employer(s)” as used in these instructions refers to employers and to payers of  2 Payers of prize winnings are required to withhold an amount equal to 20% of 
other nonpayroll payments that withhold Arizona income tax from payments to       the amount withheld pursuant to section 1441 or section 3402(q) of the 
                                                                                  internal revenue code.

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                                                                                                                            Arizona Form A1-R 
•    Logging      into  AZ    Web                          File (AZFSET)        at   Employers submitting the information on Optical Media should 
     https://efile.aztaxes.gov/AZFSETPortal  to  upload the                          secure the  Optical Media  in  a hard case and include it  with 
     supported federal forms as a .txt file.                                         Form A1-R or Form A1-T. 
•    Registered transmitters of  AZ Web File (AZFSET) can                            For more details on submitting the required federal forms using 
     bulk-file using the transmission method.                                        Optical  Media, see the department’s publication, Pub. 701, 
•    Submitting the federal information by paper or on a CD,                         Submitting Arizona Forms A1-R, or A1-APR, and Federal 
     DVD or flash drive (Optical Media).  If submitting by                            Forms W-c. W-2c, W-2G and 1099.  
     Optical Media, see the Section below  labeled, “Optical 
                                                                                     CAUTION: The employer submits the Optical Media at its own 
     Media”.                                                                         risk.  If the department cannot access the information on the 
NOTE: The department does not support the electronic filing                          Optical Media  for any reason, the employer may need to 
of all federal withholding forms (e.g. W-2 series, 1099 series).                     provide the information again.  
See Pub 701, Submitting Arizona Forms A1-R, or A1-APR, and 
Federal Forms W-2, W-2c, W-2G and 1099,                          for a list of the   Filing  Tips 
required federal withholding forms that are currently supported                      •   For layouts and business rules for electronically submitting 
by the department for electronic filing.                                                 federal Forms W-2, W-2c, W-2G and 1099, refer to the 
Any unsupported federal forms reporting Arizona wages or                                 Department’s Pub 701, or click here:     https://azdor.gov/e-
Arizona income tax withheld must be filed as Optical Media or                            services/e-services-withholding-and-w-2-1099 
                                                                                     •   Each wage and information return reportable to Arizona 
as paper forms using Form A1-T.                                                          must include the employer or payer’s Employer 
Employers filing Form A1-R electronically, must submit the                               Identification Number (EIN). Do not truncate the employer 
supported federal forms electronically through AZTaxes, AZ                               or payer EIN. 
Web File (AZFSET), or by a registered transmitter. 3
                                                                                     •   Do not truncate the employee’s Social Security Number 
Federal  forms not supported  by the department  must  be                                (SSN).  
submitted by CD, DVD, or flash drive (Optical Media), or as 
paper forms.  To submit these forms, complete and mail Form                          Requesting   an Electronic Filing Waiver 
A1-T to the address on the form.  Include the Optical Media or                       To request a waiver, submit Form 292, Electronic Filing and 
the paper forms with your submission.  When submitting Form                          Payment Waiver Application, to the department.  Form 292 is 
A1-T, do not include a paper copy of Form A1-R.  If submitting                       available at:   https://azdor.gov/forms/other-forms/electronic-
by Optical Media, see the Section below labeled, Optical Media                       filing-and-payment-waiver-application. 
for instructions.                                                                    Any employer  who is required to file  its  withholding return 
Employers  filing  Form  A1-R  by  paper may,                      submit  the       electronically may apply to the director for an annual waiver 
supported  federal forms electronically through  AZTaxes  or                         from the electronic filing requirement.  The waiver may be 
AZFSET.   If the employer does not submit the  supported                             granted, which may be renewed for one subsequent year, if any 
federal forms electronically, all required federal forms must be                     of the following apply: 
attached to Form  A1-R as either Optical Media or as paper                           •   The employer has no computer. 
forms.  If submitting by Optical Media, see the Section below                        •   The employer has no internet access. 
 labeled Optical Media for instructions.                                             •   Any other circumstance considered to be worthy by the 
If submitting a paper return, mail the return to:                                        director.   
               Arizona Department of Revenue                                         A waiver is not required if the withholding return cannot be 
                        PO Box 29009                                                 electronically filed for reasons beyond the employer’s control, 
                     Phoenix, AZ 85038-9009                                          including situations in which the employer was instructed by 
Optical  Media                                                                       the Internal Revenue Service (IRS), or the Arizona Department 
When submitting the  federal attachments by Optical Media,                           of Revenue (department) to file by paper. 
label the CD, DVD or flash drive with the employer's name,                           Please contact the department at azwebfilesupport@azdor.gov 
EIN, preparer contact information, calendar year and Form W-                         if you need assistance in submitting your Arizona withholding 
2 or Form 1099 (or both,  whichever applies).   If the  Optical                       return electronically.   
Media is password protected, note that on the label and indicate                     When    is Form A1-R Due? 
the email address from which you will be sending the password                        Form A1-R is due on or before January 31  of the year 
to the department.  Email the password separately  to                                following  the close of the calendar year.   
MediaLibrarian@azdor.gov. Include  “Form W-2” or “Form 
1099”  (or  both, whichever applies)  in the subject line of the                     Timely  Filing of Returns 
email.  In the body of the email, include the same information                       •   The department determines the timeliness of an 
that is on the label of the Optical Media.                                               electronically filed tax return by the date of the electronic 
The department will not return or copy any Optical Media                                 postmark.  If the taxpayer and the electronic return preparer 
submitted.                                                                               or the electronic return transmitter are in different time 
                                                                                         zones, it is the taxpayer’s time zone, as determined by the 
                                                                                         taxpayer’s address, that controls the timeliness of the 
                                                           
3 Required federal forms that are unsupported or rejected may be submitted by 
Optical Media or as paper forms included with Arizona Form A1-T.   
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                                                                                                            Arizona Form A1-R 
    electronically  filed return.    When  a return  has been         NOTE:     Arizona law states that all amounts withheld are to be 
    electronically received on the host system of more than one       treated as if the withholding was from wages paid to an employee.  
    electronic return preparer or electronic return transmitter       If you file federal Form 941 or  Form 944 to  report federal 
    during its ultimate transmission to the department, the           withholding on Arizona wages and federal Form 945 to report 
    return shall be deemed filed and received by the department       federal withholding on Arizona non-wage payments for the same 
    on the date of the earliest electronic postmark.                  EIN, file one A1-R  to report and  reconcile  your total Arizona 
•   The department determines the timeliness of a paper-filed         withholding  for  the year,  regardless of  the source of  that 
    tax return by the postmark or other official  mark of  the        withholding.  Do not file more than one original A1-R for the same 
    United States Mail stamped on the envelope in which the           EIN for the same calendar year.   
    return is mailed.  See the department’s ruling, GTR 16-1,          
    Timely Filing of  Income or Withholding Tax Returns               What    to Do If You Close Your Business 
    Through the United States Mail.                                   When your business is sold, discontinued, converted to a new 
•   The department will accept proof of mailing from a private        form, or all your employees are dismissed, you must notify the 
    delivery service included in the Internal Revenue Service         department by filing a final return and request the department 
    (IRS) list of designated private delivery services.  Contact      close  your  withholding account.  Until  you request the 
    the private delivery service for information regarding how        department close your withholding account, your withholding 
    to obtain written proof of mailing.                               return(s) will continue to be due.   
•   If the due date for the return falls on a Saturday, Sunday,       To  file your final Form A1-R 
    or a legal holiday, the return is considered timely filed if it 
                                                                      •   Check Box  C  if  you are submitting this form during 
    is postmarked the next business day.  See the department’s 
                                                                          calendar year 2023 due to an account cancellation during 
    ruling, GTR 16-2, Timely Filing of Income or Withholding 
                                                                          2023. 
    Tax Return – Holidays and Weekends.                               •   Check Box  D  if you  are  cancelling your withholding 
Extension   of Time to File Form A1-R                                     account due to a merger or acquisition and the surviving 
You  may apply  for a 30-day extension of time to file Form               employer is filing Forms W-2. 
A1-R.  When asking  for an  extension,  you  must show  good          •   Complete the remainder of the return to  reconcile  your 
cause.  You must file the extension request as soon as you know           Arizona income tax  withholding liability  for the  year in 
that  you need an extension.   The extension request  must be             which your account was closed.  
mailed on or before January 31.  For details on how to request        Include state copies of Forms W-2, W-2c, W-2G, and 1099 with 
an extension,  see  Withholding Tax Procedure (WTP)  11-1,            the final return. 
Procedure for Requesting Extension of the Filing Deadline for 
                                                                      NOTE: To close your account, you must file a final Form A1-
Annual Withholding Tax Returns.                                       Rand file a final Form A1-QRT for the calendar quarter during 
If you are required to pay by EFT and are making a payment            which final wages were paid.  Refer to the instructions for Form 
with  your  extension request, see the Section, Payment by            A1-QRT for assistance in filing your final Form A1-QRT.   
Electronic Funds Transfer, for options to make your extension          
payment.                                                              Filing  Amended Returns 
If you are not required to pay by EFT and are making a payment        If this is an amended Form A1-R, check the “Amended Return” 
with your extension request, you must make that payment with          box. Enter the amended amounts in all areas of the form.  
a completed Form A1-WP.  Show that the payment is for the             Complete Part 4 to explain why an amended return is being 
4th Quarter of the year for which you requested the extension.        filed. Include amended federal Forms W-2, W-2c, W-2G and 
                                                                      1099. 
Filing Original Returns 
                                                                      Unless the employer was granted a waiver to file its original 
File this form only on a calendar year basis. File one Form A1-R      return by paper, or was directed by the IRS or the department 
per Employer Identification Number (EIN) per calendar year,           to file the original Form A1-R as a paper return, amended 
regardless of the source of the withholding.  Submit Form A1-R 
                                                                      Forms A1-R shall be submitted electronically using either 
electronically unless the employer has been granted a waiver, 
                                                                      AZFSET or a registered transmitter.  For additional information 
or has been instructed to file a paper return by the IRS or by the 
                                                                      on either of these methods, see the preceding section labeled, 
department.                                                           Electronic  Filing of Withholding Tax Returns.   
A  Payroll Service Company must  submit  Form A1-R 
electronically.                                                       NOTE:  Amended Forms A1-R cannot be submitted through 
                                                                      AZTaxes.  If the AZTaxes.gov data entry method was used to 
                                                                      file the original return, the amended return must be filed by 
                                                                       paper.  
                                                                       Penalties 
                                                                      This form is an information return. The penalty for failing to 
                                                                      file, filing late (including extensions) or filing an incomplete 
                                                                      return is $100 for each month or fraction of a month that the 
                                                                      failure continues, up to a maximum of $500.   

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Arizona Form A1-R
Part 2 – Federal Transmittal Information
Specific Instructions
Line 1
Part 1 – Taxpayer Information
Enter the total amount of Arizona income tax withheld from all
When completing Part 1, always be sure the Business Name
sources. This amount must be the same as shown on federal
and Employer Identification Number (EIN) indicated on this
Forms W-2, W-2c, W-2G, or 1099.
form matches exactly the Business Name and EIN on the
Arizona Joint Tax Application (Form JT-1) you submitted to Line 2
register your EIN for Arizona income tax withholding. 4 Enter the total Arizona gross wages paid to employees for 2022.
Filing this form with an incorrect Name or EIN may result in Total Arizona gross wages means the amounts considered
delays in processing your return. wages for federal income tax withholding purposes.
Business Name, Address, and Phone Number Line 3
Enter the employer’s business 5 name, EIN, address, and Enter the number of employees who were paid Arizona wages
telephone number in the spaces provided. in 2022. Include employees who had Arizona withholding
If the employer has a foreign address, enter the information in deducted from their compensation during the year and
the following order: city, province or state, and country. Follow employees whose compensation was for services performed in
the country’s practice for entering the postal code. Do not Arizona but the employees filed an election to not have any
abbreviate the country’s name. Arizona withholding deducted from their compensation.
Do not include annuity recipients, independent contractors,
Employer Identification Number (EIN)
pension recipients, or those employees whose Arizona
Enter the employer’s EIN. If the employer does not have an
compensation is excluded from withholding by Arizona law.
EIN, it must get one from the Internal Revenue Service. All
returns, statements, or other documents filed with the Line 4
department must have the employer’s EIN indicated on them. Enter the total number of federal Forms W-2, W-2c, W-2G, or
Employers that fail to include their EIN may be subject to a 1099 submitted to the department.
penalty. Line 5
Check Boxes: Form A1-R is an information return. An information return that
A. Amended Return is incomplete or filed after its due date (including extensions) is
Check Box A, “Amended Return” if this is an amended subject to a penalty of $100 for each month or fraction of a
Form A1-R. Explain why you are amending the return in month, that the failure continues, up to a maximum penalty of
Part 4. Include the corrected copies of Forms W-2, W-2c, $500. If the employer files this return after its due date
W-2G and 1099 (with Arizona withholding) with your (including extensions), enter the amount of the penalty on this
amended Form A1-R. line.
B. Address Change Part 3 – Annual Summary of Amounts Reported
Check Box B, “Address Change” if you had an address
change since you last filed Form A1-R. Enter your current on 2022 Arizona Forms A1-QRT
address in Part 1. Lines 6 through 10
C. Early-Filed Final Return On lines 6 through 9, enter the amount of tax reported on Form
Check Box C if you cancelled your withholding account A1-QRT for each quarter. Add the amounts on lines 6 through
during 2023 and are filing the 2022 Form A1-R to file your 9 and enter the total on line 10. The amount entered on line 10
final reconciliation during 2023. should equal the amount reported on line 1.
D. Cancellation Due to Merger or Acquisition If you are filing Form A1-R as a surviving employer (as a result
Check Box D if you cancelled your withholding account of a merger or acquisition), and the amount on line 1 is more
due to a merger or acquisition and the surviving employer than the amount on line 10 because amounts were remitted by
is filing Forms W-2. the prior employer, check Box E near the top of Form A1-R.
Also enter the name and EIN of the predecessor employer in the
E. Surviving Employer is Filing Form A1-R
spaces provided.
Check Box E if Form A1-R is being filed by the surviving
employer and the amount on line 1 is less than the amount
on line 10 because the difference was remitted by the
predecessor employer. Also, enter the predecessor
employer name and EIN in the spaces provided.

4 If you submitted the Business Account Update form to change your Business 5 Arizona law provides that all amounts withheld are to be treated as if the
Name and/or EIN, enter your Business Name and/or EIN indicated on that withholding was from wages paid to an employee. For ease of reading,
document. “employer(s)” as used in these instructions refers to employers and to payers
of other nonpayroll payments that withhold Arizona income tax from
payments to employees, beneficiaries or payees.
4

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Arizona Form A1-R

Part 4 – Explain Why an Amended Form A1-R Who Must Sign Form A1-R
is Being Filed The following persons are authorized to sign the return for each
If this is an amended return, explain why you are amending type of business entity:
Form A1-R. • Sole proprietorship - The individual who owns the
Underpayment of Tax business.
If you find that you have underpaid your tax for 2022, you must • Corporation (including a limited liability company
file an amended Form A1-QRT for each quarter for which there (LLC) treated as a corporation) - The president, vice
president, or other principal officer duly authorized to sign.
was an underpayment.
•
You must send in a separate payment with each amended Form Partnership (including an LLC treated as a partner-
A1-QRT. The department will calculate the amount of interest ship) or unincorporated organization - A responsible and
duly authorized member, partner, or officer having
and any applicable penalties and send a billing notice after the
knowledge of its affairs.
amended return is processed. • Single member LLC treated as a disregarded entity for
NOTE: If your tax liability for that calendar year was more federal income tax purposes - The owner of the LLC or a
than $500, you must pay your additional tax liability by principal officer duly authorized to sign.
Electronic Funds Transfer (EFT). See the Section, Payment by • Trust or estate - The fiduciary.
Electronic Funds Transfer, in the instructions for Arizona Form
Form A1-R may be signed by a duly authorized agent of the
A1-QRT. taxpayer if a valid power of attorney has been filed.
Overpayment of Tax
If you find that you have overpaid your tax for 2022, you must Paid Preparer Use Only
file an amended Form A1-QRT for each quarter for which there Paid preparers: Sign and date the return. Complete the firm name
was an overpayment. and address lines (the paid preparer’s name and address, if self-
An overpayment will first be applied to any unpaid tax. This employed).
may include tax due for another tax type. If the overpayment is Paid preparers must provide a Tax Identification Number (TIN).
more than any unpaid tax, or if the employer does not have an Paid preparers that fail to include their TIN may be subject to a
unpaid balance of tax, a refund will be issued. A refund will penalty.
not be issued once the overpayment is applied to a tax liability. The TIN for a paid preparer may be one of the following:
Where to Submit Form A1-R • The preparer’s PTIN, or,
Submit Form A1-R and federal Forms W-2, W-2c, W-2G and • The EIN for the business, or,
1099 electronically, unless the employer has been granted a waiver • The individual preparer’s social security number (SSN),
pursuant to A.R.S. § 43-325(F), or has been instructed by the IRS if self-employed.
or by the department to file a paper return.
If submitting a paper return, mail the return to:
Arizona Department of Revenue
PO Box 29009
Phoenix, AZ 85038-9009

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