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<\/a><\/figure><\/div>Checklist for Arizona household employers<\/strong><\/h2>We know you’re busy! Here’s a quick “to-do” list with links to extra details below.<\/p>
Beginning of employment <\/strong><\/h3>- Verify caregiver’s work eligibility<\/a>.<\/li>
- Set up EIN & state tax account(s)<\/a>.<\/li>
- Obtain workers’ compensation insurance<\/a>. <\/li>
- Provide an employment contract<\/a>.<\/li>
- Display employment posters<\/a>. <\/li><\/ul>
During employment <\/strong><\/h3>- File returns, remit taxes and manage correspondence.<\/a><\/li>
- Pay at least Arizona minimum wage<\/a>.<\/li>
- Pay overtime<\/a>, when it applies.<\/li>
- Provide Arizona required sick leave<\/a>. <\/li><\/ul>
Optional benefits for your employee<\/strong><\/h3>- Health insurance<\/a> <\/li>
- Mileage reimbursement<\/a> <\/li><\/ul>
Ending employment<\/strong><\/h3>- Provide a termination notice<\/a>. <\/li>
- Manage unused paid time off<\/a>. <\/li>
- Close down your state employment tax account(s)<\/a>.<\/li>
- Maintain payroll records<\/a>.<\/li><\/ul>
Beginning of employment <\/strong><\/h2>Verify caregiver’s work eligibility<\/strong><\/h3>Before your employee begins to work, you need to fill out Form I-9<\/a> to verify they’re eligible to work in the U.S. The I-9 does not get sent to any government agency but must be presented to authorities if your nanny or senior caregiver’s employment eligibility is ever questioned. Your state also requires that you complete the E-Verify process<\/a> for your employee.<\/p>Set up EIN & state tax account(s)<\/h3>
You must first apply for a EIN (Employee Identification Number)<\/a> with the IRS. This will be used as your unique ID with both state and federal tax authorities. Then you can open an account with your state taxing authority.<\/p>Workers’ compensation<\/strong><\/h3>Household employers in Arizona are not required to get coverage for workers’ compensation insurance, but we recommend to do so. These policies pay for medical expenses and lost wages if an employee has a work-related injury or illness. Obtain an instant quote and purchase a policy online<\/a>, or by contacting our partner, Clarke White, at 804-267-1210 or wcnanny@allrisks.com.<\/p>Employment contract<\/strong><\/h3>Household employers in Arizona are required to provide a written employment contract to their employee at the time of hire. The contract must include the employee’s hourly rate of pay, when paydays will occur and how the employee will be paid (i.e. Direct Deposit, mailed a check, etc.).<\/p>
Employment posters <\/strong><\/h3>Families in Arizona are required to notify their employee(s) of their rights by sharing thes<\/a>e posters<\/a>. <\/p>During employment <\/strong><\/h2>File returns, remit taxes and manage correspondence<\/h3>- File state employment tax returns throughout the year and remit state employer and employee taxes.<\/li>
- Remit federal employer and employee taxes via 1040-ES<\/a> estimated tax payment voucher four times each year.<\/li>
- Each year end, prepare Schedule H and file with Form 1040<\/a>; prepare and distribute Form W-2<\/a> to each employee; file Form W-2 Copy A\/Form W-3<\/a> with the Social Security Administration (SSA).<\/li>
- Manage ongoing alerts and notices from the state (tax rates and labor law is subject to change at any time).<\/li><\/ul>
Minimum wage rates<\/h3>- Arizona state: $15.15\/hour<\/li>
- Flagstaff: $18.35\/hour<\/li>
- Tucson: $15.45\/hour<\/li><\/ul>
Note:<\/em> Whenever more than one minimum wage rate applies, employers are required to pay the higher rate.<\/p>Arizona overtime requirements<\/h3>- Live-out employees must be paid 1.5x their hourly rate for all hours worked over 40 in a workweek.<\/li>
- Live-in employees are not required to be paid overtime. <\/li>
- Overtime is not required to be paid when work is performed on a holiday. <\/li><\/ul>
Paid sick leave<\/h3>
Household employees in Arizona are required to provide up to 24 hours of paid sick time<\/a> to their employee each calendar year. HomePay will handle the accruals on your account. <\/p>Optional benefits for your employee <\/strong><\/h2>Health insurance<\/h3>
Families with only 1 employee can make contributions toward their employee’s health insurance premiums and treat the amount as non-taxable compensation. In this scenario, neither the employee nor the employer are required to pay any taxes on that portion of the compensation.<\/p>
Families with 2 or more employees have 3 options:<\/p>
- Set up an Individual Coverage Health Reimbursement Arrangement (ICHRA).<\/li>
- Set up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).<\/li>
- Purchase a policy through SHOP (Small Business Health Options Program). <\/li><\/ol>
Visit our health insurance page<\/a> for more information about these options. <\/p>Mileage reimbursements<\/h3>
- Verify caregiver’s work eligibility<\/a>.<\/li>
- Set up EIN & state tax account(s)<\/a>.<\/li>
- Obtain workers’ compensation insurance<\/a>. <\/li>
- Provide an employment contract<\/a>.<\/li>
- Display employment posters<\/a>. <\/li><\/ul>
During employment <\/strong><\/h3>
- File returns, remit taxes and manage correspondence.<\/a><\/li>
- Pay at least Arizona minimum wage<\/a>.<\/li>
- Pay overtime<\/a>, when it applies.<\/li>
- Provide Arizona required sick leave<\/a>. <\/li><\/ul>
Optional benefits for your employee<\/strong><\/h3>
- Health insurance<\/a> <\/li>
- Mileage reimbursement<\/a> <\/li><\/ul>
Ending employment<\/strong><\/h3>
- Provide a termination notice<\/a>. <\/li>
- Manage unused paid time off<\/a>. <\/li>
- Close down your state employment tax account(s)<\/a>.<\/li>
- Maintain payroll records<\/a>.<\/li><\/ul>
Beginning of employment <\/strong><\/h2>
Verify caregiver’s work eligibility<\/strong><\/h3>
Before your employee begins to work, you need to fill out Form I-9<\/a> to verify they’re eligible to work in the U.S. The I-9 does not get sent to any government agency but must be presented to authorities if your nanny or senior caregiver’s employment eligibility is ever questioned. Your state also requires that you complete the E-Verify process<\/a> for your employee.<\/p>
Set up EIN & state tax account(s)<\/h3>
You must first apply for a EIN (Employee Identification Number)<\/a> with the IRS. This will be used as your unique ID with both state and federal tax authorities. Then you can open an account with your state taxing authority.<\/p>
Workers’ compensation<\/strong><\/h3>
Household employers in Arizona are not required to get coverage for workers’ compensation insurance, but we recommend to do so. These policies pay for medical expenses and lost wages if an employee has a work-related injury or illness. Obtain an instant quote and purchase a policy online<\/a>, or by contacting our partner, Clarke White, at 804-267-1210 or wcnanny@allrisks.com.<\/p>
Employment contract<\/strong><\/h3>
Household employers in Arizona are required to provide a written employment contract to their employee at the time of hire. The contract must include the employee’s hourly rate of pay, when paydays will occur and how the employee will be paid (i.e. Direct Deposit, mailed a check, etc.).<\/p>
Employment posters <\/strong><\/h3>
Families in Arizona are required to notify their employee(s) of their rights by sharing thes<\/a>e posters<\/a>. <\/p>
During employment <\/strong><\/h2>
File returns, remit taxes and manage correspondence<\/h3>
- File state employment tax returns throughout the year and remit state employer and employee taxes.<\/li>
- Remit federal employer and employee taxes via 1040-ES<\/a> estimated tax payment voucher four times each year.<\/li>
- Each year end, prepare Schedule H and file with Form 1040<\/a>; prepare and distribute Form W-2<\/a> to each employee; file Form W-2 Copy A\/Form W-3<\/a> with the Social Security Administration (SSA).<\/li>
- Manage ongoing alerts and notices from the state (tax rates and labor law is subject to change at any time).<\/li><\/ul>
Minimum wage rates<\/h3>
- Arizona state: $15.15\/hour<\/li>
- Flagstaff: $18.35\/hour<\/li>
- Tucson: $15.45\/hour<\/li><\/ul>
Note:<\/em> Whenever more than one minimum wage rate applies, employers are required to pay the higher rate.<\/p>
Arizona overtime requirements<\/h3>
- Live-out employees must be paid 1.5x their hourly rate for all hours worked over 40 in a workweek.<\/li>
- Live-in employees are not required to be paid overtime. <\/li>
- Overtime is not required to be paid when work is performed on a holiday. <\/li><\/ul>
Paid sick leave<\/h3>
Household employees in Arizona are required to provide up to 24 hours of paid sick time<\/a> to their employee each calendar year. HomePay will handle the accruals on your account. <\/p>
Optional benefits for your employee <\/strong><\/h2>
Health insurance<\/h3>
Families with only 1 employee can make contributions toward their employee’s health insurance premiums and treat the amount as non-taxable compensation. In this scenario, neither the employee nor the employer are required to pay any taxes on that portion of the compensation.<\/p>
Families with 2 or more employees have 3 options:<\/p>
- Set up an Individual Coverage Health Reimbursement Arrangement (ICHRA).<\/li>
- Set up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).<\/li>
- Purchase a policy through SHOP (Small Business Health Options Program). <\/li><\/ol>
Visit our health insurance page<\/a> for more information about these options. <\/p>
Mileage reimbursements<\/h3>
- Each year end, prepare Schedule H and file with Form 1040<\/a>; prepare and distribute Form W-2<\/a> to each employee; file Form W-2 Copy A\/Form W-3<\/a> with the Social Security Administration (SSA).<\/li>
- Manage unused paid time off<\/a>. <\/li>
- Mileage reimbursement<\/a> <\/li><\/ul>
- Pay at least Arizona minimum wage<\/a>.<\/li>
- Set up EIN & state tax account(s)<\/a>.<\/li>