How to Complete and File Arizona Form 600
This guide provides a clear path for Arizona employers to reconcile annual employee withholding tax, ensuring an accurate and compliant Form 600 submission.
Arizona Form A1-R, the Withholding Reconciliation Return, is an annual summary for employers. It reconciles the Arizona income tax they withheld from employee wages with the payments made to the state throughout the year. This form ensures that the total taxes reported on individual employee W-2 forms align with the quarterly tax deposits remitted by the business. This provides a comprehensive overview of an employer’s annual withholding activity to the Arizona Department of Revenue.
Filing Requirements for Form A1-R
Any employer who withholds Arizona income tax from employee wages must file Form A1-R. This applies regardless of the business’s size or the amount of tax withheld. The form is filed on a calendar-year basis, with an annual due date of January 31 of the following year. If this date falls on a weekend or holiday, the deadline moves to the next business day.
The Arizona Department of Revenue mandates electronic filing for most employers through the state’s online tax portal. Failure to file the return by the due date can result in penalties.
Required Information for Completing Form A1-R
To complete Form A1-R, employers must gather their completed quarterly withholding returns, Forms A1-QRT, for all four quarters of the calendar year. Additionally, all federal Forms W-2 and any Forms 1099 that show Arizona tax withholding are necessary. The form requires that the total Arizona income tax withheld during the year equals the sum of withholding shown on all employee W-2s and applicable 1099s.
The sum of the tax liabilities reported on each of the four quarterly Forms A1-QRT must also be entered. Other necessary information includes the total Arizona gross wages paid, the total number of W-2 and 1099 forms being submitted, and the employer’s name, address, and Employer Identification Number (EIN). If the business has undergone a merger or acquisition, information about the predecessor employer is also required.
Submitting Form A1-R and Associated Documents
The submission process is handled electronically through the AZTaxes.gov portal. Employers log into their account to access the withholding tax filing section and enter the reconciliation data from their prepared Form A1-R.
The system also provides a method for uploading the required employee W-2 and any applicable 1099 forms. After transmitting both the reconciliation data and the supporting documents, the filer will receive an electronic confirmation. This confirmation serves as proof of filing and should be saved for the business’s records.
Addressing a Balance Due or Overpayment
If the completed Form A1-R reveals a discrepancy, such as the total tax paid being less than the total tax withheld, a correction is needed. However, payment is not submitted with Form A1-R, as it is an information return. To resolve an underpayment, the employer must file an amended quarterly return, Form A1-QRT, for the specific quarter where the error occurred and submit the additional tax owed.
Conversely, if the reconciliation shows that tax payments exceeded the amount withheld, an overpayment has occurred. The refund is not claimed on Form A1-R. The employer must file an amended Form A1-QRT for the relevant quarter to report the corrected, lower tax liability and formally request a refund from the department.