Arizona Form A1-QRT is the Arizona Quarterly Withholding Tax Return that nearly every Arizona employer must file with the Arizona Department of Revenue to reconcile the state income tax they withheld from worker pay each calendar quarter. You file it four times a year, even in quarters when you withheld nothing, until you formally close your withholding account.
This form does one important job: it lines up what you took out of paychecks against what you already paid the state. Get the math or the deposit schedule wrong and you risk a late-filing penalty of 4½% per month that can climb to 25% of the tax due, so accuracy matters from the very first box. Arizona law has required all withholding returns to be filed electronically since the 2020 tax year, which changes how most employers handle this form today.
Here is what you will learn in this guide:
- 📋 What Form A1-QRT is, who must file it, and why the state requires it
- 🧮 How to fill out every Part, line, and box using the exact labels on the form
- 👥 Three complete filled-in examples that walk real employers through the whole return
- 💸 Where, when, and how to file across every channel, plus the fees and proof you keep
- ⚠️ The mistakes that trigger penalty notices and how to dodge each one
What the Form Is and Who Must File It
Form A1-QRT is the return Arizona employers use to report and reconcile the state income tax they withheld from wages, salaries, bonuses, pensions, and certain gambling or prize winnings during a calendar quarter. The Arizona Department of Revenue, often shortened to ADOR, receives the form. The legal duty to withhold and report comes from Arizona Revised Statutes Title 43, and the electronic-filing rule sits in A.R.S. § 43-323(F).
You must file Form A1-QRT if you are an employer who remits Arizona withholding on a quarterly, monthly, semi-weekly, or next-day deposit schedule. The only employers who skip it are those who qualify to pay once a year and file Form A1-APR instead. That annual group is small, since it requires an average withholding of $200 or less per quarter over the prior four quarters, plus a clean filing history.
A key rule trips up new filers: you file one A1-QRT per EIN per quarter, even in quarters where you withheld zero Arizona tax. In those quarters you still file and report a zero liability. You keep filing every quarter until you submit a final return that cancels your withholding account.
If you report federal withholding on both Form 941 (wages) and Form 945 (non-wage payments) under the same EIN, you still file just one A1-QRT that combines all the Arizona withholding. The form rule is blunt: do not file more than one original A1-QRT for the same EIN for the same quarter.
The form connects to a small family of related filings. Form A1-WP is the payment coupon for deposits, Form A1-R is the annual reconciliation that ties your four quarters together with your W-2s, and Form A1-APR replaces both for annual filers. Knowing where A1-QRT sits in that group keeps you from filing the wrong document.
Before You Start: Documents and Information You Need
Gather everything before you open the return. Filing with a missing number or a mismatched name is the fastest way to land in a processing delay, so build your file first. Here is the pre-filing checklist.
- Your Employer Identification Number (EIN). ADOR cross-checks this against your account, and a wrong or missing EIN can trigger a penalty and a processing hold.
- Your business name exactly as it appears on Form JT-1. The Arizona Joint Tax Application set your registered name, and any mismatch delays your return.
- Your current business mailing address and phone number. A stale address means you miss billing notices, and missed notices grow into bigger penalties.
- The quarter and four-digit year you are filing for. Filing the wrong period posts your money to the wrong quarter and creates a false delinquency.
- Total Arizona gross payroll for the quarter. Line E asks for this, and it must match the wages you report federally.
- Total number of employees paid Arizona wages. Line F needs this count, and leaving it blank flags an incomplete return.
- Your total Arizona tax withheld for the quarter, by month. You cannot complete Part 2 without this, broken out by month if you are a monthly or semi-weekly depositor.
- A record of every withholding payment you already made this quarter. Line 2 needs this total, and overstating it understates your balance due.
- Your prior four-quarter withholding average. This decides whether you complete Section A or Section B, which is the single biggest branching choice on the form.
- Your final-wage date, if you are closing. A final return without this date will not cancel your account.
Pull your payroll reports, your federal Form 941 for the quarter, and your A1-WP payment confirmations into one place. If any piece is missing, stop and find it, because a guess on this form becomes a billing notice later.
Where to Get the Form and How to Access It
The official Form A1-QRT and its line-by-line instructions live on the ADOR withholding forms page, where you can also confirm the current revision date printed on the form (the current version carries form number ADOR 10888). Always pull the form straight from the state site rather than a third-party copy, because an outdated revision can use old line numbers.
Because Arizona requires electronic filing, most employers never touch the paper form at all. You file through the AZTaxes.gov portal using its data-entry method, where you log into your account and key the numbers directly into the screen. Bulk filers and payroll companies use the AZ Web File (AZFSET) portal to upload a .csv file or transmit returns.
Paper filing is the exception, not the rule. You may file on paper only if ADOR granted you an electronic-filing waiver through Form 292 or if the IRS or the department told you to file by paper. Reasons that support a waiver include having no computer or no internet access.
If you hit a technical wall while e-filing, email the department at azwebfilesupport@azdor.gov for help. Keep your AZTaxes login details handy, because you will use the same account to file the return and to pay any balance due by e-check.
Step-by-Step: How to Fill Out Form A1-QRT Line by Line
Work the form top to bottom. The form has six Parts, and you only complete the Parts that fit your situation. Below, each field gets its own walkthrough using the exact labels printed on the return.
Part 1: Business Name
What it asks in plain English. This box wants your company’s legal name, the same one you registered with the state.
How to answer it. Type or print the business name exactly as it appears on your Arizona Joint Tax Application, Form JT-1. Match capitalization and spacing as closely as you can.
Example entry. Desert Bloom Landscaping LLC writes Desert Bloom Landscaping LLC in the Business Name box.
Nuance or edge case. If you filed a Business Account Update to change your name, use the new name shown on that update, not the old one.
Common mistake and consequence. Filers often shorten the name or drop the entity tag like “LLC,” and a mismatch with the JT-1 name can delay processing while ADOR tries to match the return to your account.
Misconception. Some owners think the name only needs to be close enough; in truth the department matches names against your registration, so “close” is not good enough.
Part 1: Employer Identification Number (EIN)
What it asks in plain English. This box wants the nine-digit federal EIN tied to your withholding account.
How to answer it. Enter the EIN issued by the IRS. If you do not have one, get one from the IRS before you file.
Example entry. Desert Bloom Landscaping LLC writes 86-1234567 in the EIN box.
Nuance or edge case. If you changed your EIN through a Business Account Update, enter the EIN shown on that document.
Common mistake and consequence. Transposing two digits posts your return to the wrong account or none at all, and employers who leave the EIN off entirely may face a penalty.
Misconception. People assume any tax ID works here, but ADOR wants the federal EIN, not a state TPT number or a Social Security number.
Part 1: Address and Business Telephone Number
What it asks in plain English. These lines ask where your business receives mail and the phone number ADOR can call.
How to answer it. Enter the number and street or PO Box, then the city or town, state, and ZIP Code, and add the business telephone number with area code.
Example entry. The company enters 4820 N Cactus Rd, Phoenix, AZ 85018 and (602) 555-0142.
Nuance or edge case. For a foreign address, enter the city, then province or state, then country, and follow that country’s postal-code format without abbreviating the country name.
Common mistake and consequence. Using an old address means billing notices go to the wrong place, and unanswered notices can let penalties pile up before you ever see them.
Misconception. Some filers think the phone number is optional; it is part of a complete return and helps ADOR reach you fast about errors.
Part 1: Quarter and Year
What it asks in plain English. This box asks which three-month period and which year this return covers.
How to answer it. Enter the quarter as 1, 2, 3, or 4, then the four digits of the year. Quarter 1 is January through March, Quarter 2 is April through June, Quarter 3 is July through September, and Quarter 4 is October through December.
Example entry. For the spring quarter of 2026, the filer enters Q 2 Y 2026.
Nuance or edge case. These are calendar quarters tied to the calendar year, not your fiscal year, so a June payroll always belongs to Quarter 2.
Common mistake and consequence. Filing Quarter 2 wages under Quarter 1 posts the money to the wrong period and can create a false delinquency notice for the quarter you skipped.
Misconception. Owners sometimes think the year follows their business fiscal year; the form always uses the standard calendar year.
Part 1: Check Boxes A, B, C, and D
What it asks in plain English. These four boxes flag a special return: amended, address change, final, or surviving employer.
How to answer it. Check Box A for an Amended Return, Box B for an Address Change, Box C for a Final Return that cancels your account, or Box D if you are the surviving employer covering less than three months. Leave them all blank on a routine return.
Example entry. A standard quarterly filer leaves all four boxes empty, while a closing business checks Box C and enters the final-wage date.
Nuance or edge case. If you check Box C, you must also enter the date final wages were paid and complete Part 6, and if you check Box D you must add the predecessor employer’s name and EIN.
Common mistake and consequence. Checking Final Return by accident cancels your live withholding account, which forces you to re-register before you can file again.
Misconception. Many filers think an amended return only lists the corrected numbers; an amended A1-QRT must show the full corrected return, not just the changes.
Part 1: Line E – Total Arizona Payroll for This Quarter
What it asks in plain English. This line asks for the total gross Arizona wages you paid during the quarter.
How to answer it. Enter the total gross Arizona payroll, using the same wage figure you treat as wages for federal income-tax withholding. Write it as a dollar amount.
Example entry. Desert Bloom Landscaping LLC enters $96,400.00 for total quarterly Arizona payroll.
Nuance or edge case. Gross payroll means wages before deductions, not net pay, and it includes bonuses and other taxable compensation.
Common mistake and consequence. Reporting net pay instead of gross understates payroll and can make your withholding look inconsistent, which invites a question from the department.
Misconception. People think Line E is the tax amount; it is the wage base, while the tax goes in Part 2.
Part 1: Line F – Total Number of Employees Paid Arizona Wages
What it asks in plain English. This line asks how many workers you paid Arizona wages during the quarter.
How to answer it. Count employees who had Arizona withholding taken out, plus employees who performed services in Arizona but elected zero withholding. Enter the number.
Example entry. The company enters 7 for seven Arizona employees.
Nuance or edge case. Do not count independent contractors, pension recipients, annuity recipients, or workers whose Arizona pay is excluded from withholding by law.
Common mistake and consequence. Counting 1099 contractors inflates the number and creates a mismatch with your W-2 count on the annual Form A1-R.
Misconception. Filers think anyone who got a check counts; only employees paid Arizona wages belong here.
Part 2: Section A – Quarterly Deposit Schedule (Line A1)
What it asks in plain English. Section A is for small withholders, and Line A1 asks for the total Arizona tax you withheld all quarter.
How to answer it. Complete Section A only if your average Arizona withholding over the prior four quarters was $1,500 or less. On Line A1, enter the total amount withheld during the quarter, then copy it to Part 3, line 1. Do not subtract any payments here.
Example entry. Desert Bloom, a quarterly depositor, enters $3,180.00 on Line A1.
Nuance or edge case. Include withholding from all sources under this EIN, such as pensions or gambling winnings, not just payroll.
Common mistake and consequence. Completing both Section A and Section B double-reports your liability, and the form warns in bold to complete one section only.
Misconception. Some think Line A1 should show net tax after deposits; it shows total tax withheld, before any payments.
Part 2: Section B – Monthly or Semi-Weekly Schedule (Lines B1-B4)
What it asks in plain English. Section B is for larger withholders, and it asks for your tax withheld broken out by each month of the quarter.
How to answer it. Complete Section B only if your prior four-quarter average was greater than $1,500. Enter the month-one tax on Line B1, month two on B2, and month three on B3, then add them and enter the total on Line B4, which also goes to Part 3, line 1.
Example entry. Saguaro Tech Inc., a monthly depositor, enters $2,900 on B1, $3,050 on B2, $3,120 on B3, and $9,070 on B4.
Nuance or edge case. If you are a semi-weekly depositor or had a next-day deposit, check the box and complete Part 4 first, then carry those monthly totals to B1 through B3.
Common mistake and consequence. Entering a single quarter total on one B line instead of splitting by month understates two months and can flag your deposit timing.
Misconception. “Monthly” and “semi-weekly” describe deposit rules, not how often you run payroll, so a biweekly payroll can still be a monthly depositor.
Part 3: Line 1 – Liability
What it asks in plain English. Line 1 is your total Arizona tax liability for the quarter.
How to answer it. Enter the amount from Line A1 if you used Section A, or from Line B4 if you used Section B. Do not subtract any payments from this figure.
Example entry. Desert Bloom carries $3,180.00 from A1 down to Part 3, line 1.
Nuance or edge case. This line reflects every dollar withheld in the quarter from all sources under the EIN, even amounts you have not yet deposited.
Common mistake and consequence. Netting out deposits here understates your liability and throws off the line 3 math, which can create an apparent underpayment.
Misconception. People treat line 1 as the balance due; it is the gross liability, and the balance comes later on line 3.
Part 3: Line 2 – Payments Made During This Quarter
What it asks in plain English. Line 2 asks how much you already paid the state toward this quarter’s withholding.
How to answer it. Enter the total of all withholding payments you made for this quarter. If you made no payments before filing, enter 0. Do not include the payment you are sending with this return.
Example entry. Desert Bloom made one deposit and enters $3,180.00, leaving a zero balance, while a filer who deposited nothing enters 0.
Nuance or edge case. Payments made with the return itself do not go here; this line is only for deposits made earlier in the quarter.
Common mistake and consequence. Overstating payments here understates line 3 and leaves a real balance unpaid, which then draws a late-payment penalty.
Misconception. Filers assume an empty box reads as zero; the instructions tell you to actually write 0 so the return is complete.
Part 3: Line 3 – Total Amount Due
What it asks in plain English. Line 3 is the bottom line: what you still owe or what you overpaid.
How to answer it. Subtract line 2 from line 1 and enter the difference. A positive number is tax due; a negative number is an overpayment, and you mark it with a minus sign.
Example entry. Desert Bloom subtracts $3,180.00 from $3,180.00 and enters 0, meaning nothing is due.
Nuance or edge case. A negative line 3 is applied to other liabilities first, even in another tax type, and only then refunded.
Common mistake and consequence. Forgetting the minus sign on an overpayment can make ADOR read a credit as a balance due and bill you for tax you do not owe.
Misconception. People expect a refund check fast; once an overpayment is applied to a liability, no refund is issued for that amount.
Part 4: Semi-Weekly/Next Day Deposit Schedule
What it asks in plain English. Part 4 maps your deposits day by day for each month when you were a semi-weekly or next-day depositor.
How to answer it. For each of the three monthly grids, check the box on each day you had a next-banking-day deposit obligation and total each month, carrying those totals to B1, B2, and B3. Complete Part 4 only for months with a semi-weekly or next-day requirement.
Example entry. A semi-weekly filer checks the boxes for the 5th, 19th, and 26th in month one and totals that month’s liability at the bottom.
Nuance or edge case. A monthly depositor who hits a next-day obligation becomes a semi-weekly depositor for the rest of the quarter and the next calendar year.
Common mistake and consequence. Skipping Part 4 when you are semi-weekly leaves your deposit timing undocumented and can lead to a failure-to-deposit penalty.
Misconception. Filers think Part 4 replaces Part 2; it feeds Part 2, and you still complete Section B.
Part 5: Amended Return Information
What it asks in plain English. Part 5 asks you to explain, in words, why you are amending the return.
How to answer it. Complete Part 5 only if you checked Box A. Write a clear reason and attach extra sheets if you need more room.
Example entry. A filer writes Corrected Q1 withholding to include a missed bonus run; tax increased by $420.
Nuance or edge case. If you amend a prior-year quarter, you must also file an amended Form A1-R for that year with corrected W-2s and 1099s attached.
Common mistake and consequence. Leaving the explanation blank stalls the amendment, because the department cannot tell what changed or why.
Misconception. People think an amended A1-QRT can always be e-filed in AZTaxes; amended returns cannot go through the AZTaxes data-entry method and usually must be paper-filed unless a PSC or registered transmitter files them.
Part 6: Final Return
What it asks in plain English. Part 6 tells the state why you are closing your withholding account.
How to answer it. Complete Part 6 only if you checked Box C. Check the reason that fits: reorganization, business sold, stopped paying wages, permanently closed, only leased or temporary employees, or other. Add successor or record-keeping details if the boxes apply.
Example entry. A closing owner checks reason 4, Business permanently closed, after entering the final-wage date in Part 1.
Nuance or edge case. You must also file a final Form A1-R for the year final wages were paid, or your account stays open.
Common mistake and consequence. Filing a final A1-QRT but skipping the final A1-R leaves the account active, and returns keep coming due.
Misconception. Owners think closing the business automatically closes the tax account; only a final return with Part 6 cancels your withholding registration.
Declaration and Signature
What it asks in plain English. The signature block certifies, under penalty of perjury, that the return is true and complete.
How to answer it. Sign and date the Declaration, add the business telephone number, and have any paid preparer complete the Paid Preparer’s Use Only block with their PTIN.
Example entry. The owner signs, dates 07/15/2026, and the bookkeeping firm enters its PTIN and firm EIN.
Nuance or edge case. When you e-file, the electronic submission serves as your signature, so there is no pen-and-ink line to sign.
Common mistake and consequence. An unsigned paper return is treated as not filed, which can trigger a late-filing penalty even though you mailed it on time.
Misconception. Filers think the preparer’s signature replaces theirs; the taxpayer must still certify the return.
Three Filled-Out Examples Using Real Scenarios
Below are three common filers walked through the whole form. Each table shows the most important entries.
Scenario 1: Maria, a small quarterly depositor. Maria owns Desert Bloom Landscaping LLC, withheld a modest amount, and already deposited it.
| Form Section | What Maria Enters |
|---|---|
| Business Name | Desert Bloom Landscaping LLC |
| EIN | 86-1234567 |
| Quarter and Year | Q 2 Y 2026 |
| Check Boxes A-D | All left blank |
| Line E (Total AZ Payroll) | $96,400.00 |
| Line F (Employees) | 7 |
| Part 2, Line A1 | $3,180.00 |
| Part 3, Line 1 (Liability) | $3,180.00 |
| Part 3, Line 2 (Payments) | $3,180.00 |
| Part 3, Line 3 (Amount Due) | 0 |
Scenario 2: David, a monthly depositor. David runs Saguaro Tech Inc., withholds more than $1,500 per quarter on average, and deposits monthly.
| Form Section | What David Enters |
|---|---|
| Business Name | Saguaro Tech Inc. |
| EIN | 86-7654321 |
| Quarter and Year | Q 2 Y 2026 |
| Line E (Total AZ Payroll) | $310,500.00 |
| Line F (Employees) | 18 |
| Part 2, Line B1 (Month 1) | $2,900.00 |
| Part 2, Line B2 (Month 2) | $3,050.00 |
| Part 2, Line B3 (Month 3) | $3,120.00 |
| Part 2, Line B4 (Total) | $9,070.00 |
| Part 3, Line 3 (Amount Due) | 0 |
Scenario 3: Janet, closing her business. Janet shut down Copper Canyon Cafe and files a final return to cancel her account.
| Form Section | What Janet Enters |
|---|---|
| Business Name | Copper Canyon Cafe LLC |
| EIN | 86-2468013 |
| Quarter and Year | Q 3 Y 2026 |
| Check Box C (Final Return) | Checked, final wages 09/12/2026 |
| Line E (Total AZ Payroll) | $41,200.00 |
| Line F (Employees) | 5 |
| Part 2, Line A1 | $1,090.00 |
| Part 3, Line 3 (Amount Due) | 0 |
| Part 6 Reason | 4 – Business permanently closed |
| Follow-up filing | Final Form A1-R for 2026 |
How to File the Completed Form
Arizona requires electronic filing for nearly every employer, so pick the channel that fits you. Whatever channel you use, keep your confirmation as proof of filing.
- AZTaxes.gov data entry (online). Log into your account at the AZTaxes portal, key the return on screen, and submit it. There is no filing fee, and you pay any balance by e-check at no charge or by credit card for a provider fee. The electronic postmark sets your filing date, and you keep the confirmation number as proof.
- AZ Web File / AZFSET (bulk online). Register at the AZFSET portal to upload a .csv file or transmit returns, which suits employers with many returns. There is no fee, processing is near-immediate, and the system returns an acknowledgment you should save.
- Payroll Service Company. If a PSC files for you, it must file your A1-QRT and make payments electronically. A PSC that files on paper or pays by check faces a $25 penalty per failure, so confirm your provider files online and keep its confirmation.
- Paper by mail (waiver only). If ADOR granted a waiver through Form 292, mail the return to Arizona Department of Revenue, PO Box 29009, Phoenix, AZ 85038-9009. Use the US Mail postmark or an IRS-designated private delivery service as your proof, and keep a copy of the signed return.
Employers who owe $500 or more for the year must pay by Electronic Funds Transfer, registered through AZTaxes, and a failure to pay by EFT carries a 5% penalty on the amount not sent that way.
What Happens After You File
Once ADOR receives your return, it matches your reported liability against the payments on your account. If line 3 showed tax due and you did not pay it, the department applies your payment, then calculates any penalty and interest and mails you a billing notice. You do not compute penalty and interest on the form yourself.
If you reported an overpayment, the department first applies that credit to any outstanding liability you have, possibly in another tax type. Only after clearing those balances does it issue a refund check, and once a credit is applied to a liability, no refund is issued for that portion.
Keep your confirmation number, your filed return, and your payment records together for each quarter. If a notice arrives that does not match your records, that file is how you respond quickly. For a closing business, watch for confirmation that your withholding account is canceled, and remember the final A1-R is still required.
Interest runs on any tax not paid by the due date at the same rate the IRS charges individual taxpayers, so a small unpaid balance grows until you clear it. Responding to the first notice promptly keeps that growth small.
Mistakes to Avoid When Filling Out the Form
Each error below has a direct cost, so scan this list before you submit.
- Completing both Section A and Section B; this double-reports your liability and the form forbids it.
- Using a business name that does not match your JT-1; this delays processing while ADOR tries to match your account.
- Entering a wrong or transposed EIN; this posts your return to the wrong account or none and can draw a penalty.
- Filing the wrong quarter or year; this creates a false delinquency for the period you skipped.
- Reporting net payroll on Line E instead of gross; this understates wages and invites questions.
- Counting 1099 contractors on Line F; this inflates the count and clashes with your annual A1-R.
- Subtracting deposits inside Part 2; line 1 must show total tax withheld before payments.
- Overstating payments on line 2; this hides a real balance and triggers a late-payment penalty.
- Omitting the minus sign on a line 3 overpayment; ADOR may bill you for tax you do not owe.
- Checking Final Return by mistake; this cancels your live account and forces re-registration.
- Skipping the final Form A1-R when you close; your account stays open and returns keep coming due.
- Forgetting to file a zero return; missing a no-withholding quarter still counts as a late filing.
Do’s and Don’ts
Do:
- Do match your business name and EIN to your JT-1 exactly, because ADOR cross-checks both.
- Do file every quarter, even zero ones, because the duty continues until you cancel the account.
- Do complete only one of Section A or Section B, because the form treats both as an error.
- Do pay by EFT if you owe $500 or more for the year, because skipping EFT adds a 5% penalty.
- Do save your confirmation number, because it is your proof the return was filed on time.
- Do file the final A1-R when you close, because the final A1-QRT alone does not finish the job.
Don’t:
- Don’t file more than one original A1-QRT per EIN per quarter, because duplicates confuse your account.
- Don’t subtract deposits inside Part 2, because line 1 must show gross tax withheld.
- Don’t count contractors or pension recipients on Line F, because only employees belong there.
- Don’t guess at a missing payment figure, because an overstated line 2 leaves real tax unpaid.
- Don’t mail a paper return without a waiver, because Arizona requires electronic filing.
- Don’t ignore a billing notice, because interest and penalties grow until you respond.
Pros and Cons of Filing on Your Own vs. With Help
Many small employers file A1-QRT themselves, while others lean on a payroll service or accountant. Here is how the two compare.
| Filing on Your Own | Filing With a Payroll Service or Accountant |
|---|---|
| Pro: No service fee, since you use the free AZTaxes portal | Pro: A professional handles deposit schedules and deadlines for you |
| Pro: You learn your own numbers and spot errors early | Pro: Bulk e-filing through AZFSET fits many EINs at once |
| Pro: Direct control over your filing timing | Pro: Lower risk of the Section A vs. B mix-up |
| Con: You carry the risk of the 4½% late-filing penalty | Con: You pay ongoing service fees |
| Con: You must track every due date and EFT threshold yourself | Con: A PSC that files on paper draws $25 penalties charged back to you |
| Con: Easy to miss a zero return in a quiet quarter | Con: You depend on the provider filing on time |
The right choice often comes down to how many employees you have and how comfortable you feel with deposit rules. A single-location shop with steady payroll often files fine alone, while a growing company with shifting deposit schedules tends to benefit from help.
FAQs
Do I have to file Form A1-QRT in a quarter when I withheld nothing?
Yes. You file an A1-QRT every quarter, including quarters with zero Arizona withholding, reporting a zero liability, until you cancel your account with a final return.
Do I complete both Section A and Section B of Part 2?
No. You complete only one. Use Section A if your prior four-quarter average was $1,500 or less, and Section B if it was greater than $1,500.
Do I write my withholding before or after deposits on Part 3, line 1?
No, you do not net out deposits. Line 1 shows the total Arizona tax withheld for the quarter, and your payments go separately on line 2.
Do I count independent contractors on Line F?
No. Line F counts only employees paid Arizona wages, including those who elected zero withholding, but never contractors, pension recipients, or annuity recipients.
Do I report gross or net payroll on Line E?
Yes, report gross. Line E asks for total gross Arizona payroll, using the same wage figure treated as wages for federal income-tax withholding.
Do I have to file electronically?
Yes. Arizona has required electronic withholding returns since the 2020 tax year, unless you hold a waiver through Form 292 or were told to paper-file.
Do I owe a penalty if I file late?
Yes. The late-filing penalty is 4½% of the tax due per month, capped at 25%, and a separate late-payment penalty of ½% per month can also apply.
Do I get extra time to file the A1-QRT?
Yes. Employers who made every payment on time during the prior quarter get 10 extra days, moving the due dates to May 10, August 10, November 10, and February 10.
Do I have to pay by EFT?
Yes, if you owe $500 or more for the calendar year. Failing to pay by EFT when required adds a penalty equal to 5% of that payment.
Do I file an amended A1-QRT through AZTaxes?
No. Amended returns cannot go through the AZTaxes data-entry method, so most employers must paper-file the amendment unless a PSC or registered transmitter files it.
Do I need the minus sign on a line 3 overpayment?
Yes. Use a minus sign for any negative line 3, or the department may read your credit as a balance due and bill you in error.
Do I do anything else when I close my business?
Yes. Check Box C, enter the final-wage date, complete Part 6, and also file a final Form A1-R, or your withholding account stays open.
Do the due dates change if they fall on a weekend?
Yes. If a due date lands on a Saturday, Sunday, or legal holiday, your return and payment are timely if filed on the next banking day.
Do I file one A1-QRT if I withhold on both wages and non-wage payments?
Yes. File one A1-QRT per EIN per quarter that combines all Arizona withholding, even if you report federally on both Form 941 and Form 945.
Related reading
- How to Fill Out Arizona Withholding Form A-4 + FAQs
- How to Fill Out Arizona Form 140ES (w/Examples) + FAQs
- How to Fill Out Arizona Form 140NR (w/Examples) + FAQs
- How to Fill Out Arizona Form 140PY (w/Examples) + FAQs
- How to Fill Out Arizona Form A-4 (w/Examples) + FAQs
- How to Fill Out Arizona Form TPT-2 (w/Examples) + FAQs
- How to Fill Out West Virginia Withholding Form IT-104 + FAQs