Did you collect Arizona unemployment benefits last year? Many people have been laid off due to company downsizing. This happens every year to many. The disruption to income can be very stressful to deal with while searching for a new job, and that is why the government provides the unemployment benefit.
While some people have taxes withheld while receiving unemployment income, many do not. Taxes must be paid on the benefit. Forms numbered 1099 were mailed in January to those who collected Arizona unemployment benefits in 2006. This statement is a record of the total paid out, and any court ordered deductions and taxes withheld.
If you claimed unemployment benefits last year, you are responsible to pay taxes on the money. You should have gotten a 1099 statement from the Arizona department of labor by this point. If you did not get one, you should contact their office. Within one week of verifying your address with them, your form should arrive.
If you own a business, you may be issuing 1099 statements as well. This form can be used to record payments made to independent contractors, freelance workers, or anyone who provided service to the business that is not a regular employee. If you are the one who provided a personal service to a business, you may or may not receive this form. Regardless of the receipt of this statement, you will have to pay taxes on your income profits.
When filing taxes, be sure to include the income that is on your 1099. It is a government record created to assist you in keeping track of your income if you are not the employee of a business that will issue you a W-2. Both federal and state taxes may be required.
The Employment Security Law of Arizona establishes the eligibility requirements for the payment of unemployment insurance and information about eligibility, and this information is available on Arizona Unemployment Insurance posters.
Two kinds of eligibility are addressed on Arizona Unemployment Insurance posters
Monetary Eligibility – Wages earned in Arizona’s Base Period from employers subject to the law, and
Non-monetary Eligibility – Reason for separation from the last employer as well as other eligibility requirements; such as being able to work, available for work and seeking full-time employment.
The Arizona Unemployment Insurance posters also contain information for filing and appealing claims.
The Unemployment Insurance Tax Section collects payroll taxes and wage information from employers and insures the integrity of the Federal Trust Fund in which taxes are deposited. An employer’s tax rate is based in part, on their actual experience with unemployment insurance. As an employer, you contribute to the Unemployment Insurance Benefits Program as described on the Arizona Unemployment Insurance posters through your state and federal unemployment insurance taxes. These contributions allow eligible individuals to receive benefits while they seek new employment.
In order to qualify for online filing of your quarterly Unemployment Insurance Tax and Wage Report (and/or a Report of Changes), your business must be REGISTERED and have an ACTIVE account with the Department of Economic Security as a RATED or REIMBURSABLE employer.
REGISTERED – An Arizona Joint Tax Application has been filed with the Department and an Unemployment Tax Account number has been assigned.
ACTIVE – An employer who currently has Arizona employment and has received written notice of an Unemployment Tax Account number.
RATED – An Arizona Unemployment Tax Account has been assigned and the employer has been given a tax rate for the calendar year.
REIMBURSABLE – An employer determined as having a reimbursable account, i.e., a qualified employer who was offered and chose the alternative method of paying state unemployment insurance taxes known as the Reimbursement Payment Option.
The full details of unemployment insurance for Arizona can be found on the Arizona Complete Labor Law poster. This one posting reflects all of the most up to date state and federal labor laws.