Construction Contract Cost Plus Withholding Tax In Phoenix
Description
Form popularity
FAQ
To register for both an income tax withholding account with the Department of Revenue and an unemployment insurance account with the Department of Economic Security, the employer will need to complete the JT-1 application on AZTaxes or complete the form and return the completed form to the department.
Businesses that perform the following activities are subject to TPT and must be licensed. retail sales. restaurants/bars. hotel/motel (transient lodging) commercial lease. amusements. personal property rentals. contracting. severance (metal mining)
Arizona originally adopted TPT in 1933 when the rate for selling tangible personal property at retail was 2 percent. That rate is currently 5.6 percent. On top of the state TPT, there may be one or more local TPTs, as well as one or more special district taxes, each of which can range between 0 percent and 5.6 percent.
Licensing Requirements If a business is selling a product or engaging in a service subject to TPT, that business will likely need a license from the Arizona Department of Revenue (ADOR) and a TPT, or business/occupational license, from the city or cities in which the business has a base or operation.
Generally, Arizona imposes a sales tax on services if they are considered to be tangible personal property repair, replacement, or maintenance services. For example, car repair, furniture cleaning, and tangible goods warranties are taxable services. However, not all services are subject to sales tax in Arizona.
Common sales tax exemptions include: Professional or personal services where the sale of tangible personal property constitutes an inconsequential element. Services rendered in addition to the sale of tangible personal property at retail.
When the AZ Form A-4 has not been filed, or an invalid status is found for an employee on the database, the employee's taxes will automatically be withheld at the default rate of 2.0%, regardless of his/her annual income. In order to elect a percentage less than or greater than 2.0%, employees must submit Form A-4.
Businesses that perform the following activities are subject to TPT and must be licensed. retail sales. restaurants/bars. hotel/motel (transient lodging) commercial lease. amusements. personal property rentals. contracting. severance (metal mining)
To elect an Arizona withholding percentage, an employee must complete Arizona Form A-4, and submit it to their employer. You may request to have an additional amount withheld by their employer. You may change the withholding amount by completing Arizona Form A-4 to change the previous withholding amount or percentage.
WHAT IS THE CITY TAX RATE? The City's two-level tax rate structure is 2.3% for Level 1 and 2% for Level 2; the combined rate (including State & County taxes) is 8.6% for Level 1 and 8.3% for Level 2. WHEN IS TAX DUE? Your tax return and payment are due on the 20th day of the month following the reporting period.
