Arizona Administrative Code › Title 15 - REVENUE › Chapter 2 - DEPARTMENT OF REVENUE - INCOME AND WITHHOLDING TAX SECTION › Subchapter B - WITHHOLDING › Article 1 - WITHHOLDING BY EMPLOYER › Section R15-2B-102 - Employment Excluded from Withholding

Current through Register Vol. 30, No. 28, July 12, 2024
A. An employer shall not withhold Arizona
				  income taxes from:
1. Wages paid to an
				  employee of a common carrier when that employee is a nonresident of Arizona and
				  regularly performs services inside and outside the state.
2. Wages paid for domestic service in a
				  private home. Generally, service of a household nature in or about a private
				  home includes services rendered by cooks, maids, butlers, valets, housekeepers,
				  gardeners, caretakers, companions, child-care providers (baby-sitter,
				  governess, nanny), grooms, and chauffeurs of automobiles for family use. If the
				  home is used primarily for the purpose of supplying board or lodging to the
				  public as a business enterprise, it ceases to be a private home. The
				  compensation paid for the services listed above is not exempt from withholding
				  if performed in or about rooming or lodging houses, boarding houses, clubs,
				  hotels, motels, bed-and-breakfasts, hospitals, charitable institutions, or
				  commercial offices or establishments. Services that are not ordinarily part of
				  household duties and that involve the use of skilled or specialized training
				  are not domestic services. Compensation paid for services performed as a
				  private secretary even though performed in the employer's home is not exempt
				  from withholding.
3. Wages paid by
				  employers for casual labor not in the course of the employer's trade or
				  business. "Casual labor not in the course of the employer's trade or business"
				  means services that do not promote or advance the trade or business of the
				  employer. The term does not include services performed for a corporation. For
				  example, casual labor includes the labor performed by a carpenter employed by
				  an individual to do incidental work on the individual's house. If that
				  individual employed a carpenter to do incidental work in a factory operated by
				  the individual, the work would be in the course of the individual's trade or
				  business. The compensation paid for that labor is not exempt from withholding.
				  Seasonal employment of sales clerks during any peak sales periods of a business
				  is subject to withholding.
4. Wages
				  paid for part-time or seasonal agricultural labor. Wages paid to part-time or
				  seasonal employees whose services to the employer consist solely of labor in
				  connection with the planting, cultivating, harvesting, or field packing of
				  seasonal agricultural crops are not subject to withholding. Wages paid to
				  employees whose principal duties are to operate any mechanically driven device
				  in these agricultural operations are subject to withholding. An employee is
				  part-time or seasonal agricultural employee if:
a. The employer hires the employee to help in
				  1 of the steps in the development of a seasonal agricultural crop;
b. The employee does not perform any other
				  services for the same employer; and
c. The employee understands, at the date of
				  employment, that the employee's job will end on or before the completion of
				  that step.