Quarterly Contribution and Wage Report in Phoenix, Arizona (2026)
Miss a quarterly deadline and the Arizona Department of Economic Security (DES) will flag your account for non-compliance, triggering audits and potential penalties that can freeze payroll processing. The Quarterly Contribution and Wage Report—also called the Arizona Quarterly Wage Report or UI Wage Report—is filed with Arizona DES and reports total wages paid to employees each quarter. Key facts:
- 23 fields to complete — ApronPrep auto-fills 19
- $0 government filing fees through Arizona DES
- Due by the last day of the month following quarter end (approximately 30 days after quarter end)
Analyzed from Quarterly Contribution and Wage Report
83% from one compliance interview
Manual entry or document upload required
Why You Need a Quarterly Contribution and Wage Report
The Quarterly Contribution and Wage Report is required under the Arizona Revised Statutes § 23-722, which governs employer contributions to the Unemployment Insurance (UI) Trust Fund administered by the Arizona Department of Economic Security (ADES). Every employer who pays wages to one or more workers in Arizona — including restaurant owners operating in Phoenix — must file this report each calendar quarter, regardless of whether any wages were paid during that quarter. ADES uses this filing to calculate each employee's wage history and confirm that your business is current on its UI tax obligations. Failure to file is not a passive oversight; ADES actively cross-references payroll records with federal Form 941 data to identify non-filers.
Operating without filing your quarterly reports exposes your Phoenix restaurant to a cascade of financial and operational consequences that can disrupt hiring, financing, and even your ability to keep the doors open:
- Penalty assessments — ADES imposes penalties on late filings and late payments; penalty rates are set by statute and compound the longer the delinquency continues (contact ADES or verify current rates at the ADES Employer Portal)
- Interest charges — Unpaid UI contributions accrue interest under A.R.S. § 23-735, increasing your total liability with each passing quarter
- Forced contribution assessment — If you fail to file, ADES may estimate your wages and assess contributions based on that estimate, which is typically higher than your actual liability
- Fraud penalties — Intentional misreporting of wages or employee counts can trigger civil fraud penalties and referral for criminal prosecution under Arizona law
- Business license and financing risk — Outstanding ADES tax liens can block SBA loan approvals, delay lease renewals, and appear on lien searches conducted by commercial lenders
Legal code: State unemployment insurance act, employer registration requirements
Recent update: As of 2026, ADES has expanded mandatory electronic filing requirements for employers above certain wage thresholds — Phoenix restaurant owners should confirm whether their payroll size now requires submission exclusively through the ADES Unemployment Tax and Wage System (UCTS) portal rather than paper Form UC-018.
Who Needs a Quarterly Contribution and Wage Report?
| Type | Required | Notes |
|---|---|---|
| Restaurant (Full-Service) | Required | Any full-service restaurant with at least one employee is required to file the Arizona Quarterly Contribution and Wage Report (UC-018) with the Arizona Department of Economic Security under A.R.S. § 23-722, reporting all wages paid and unemployment insurance contributions owed each quarter. |
| Bar / Nightclub | Required | Bars and nightclubs employing staff — including bartenders, servers, security, and hosts — are subject to Arizona unemployment insurance tax under A.R.S. § 23-613 and must file the UC-018 quarterly for all covered wages paid during the quarter. |
| Food Truck | Required | A food truck operating as an employer with one or more employees must file the quarterly UC-018 report under A.R.S. § 23-613; sole proprietors with no employees are not subject to this filing, but any single hire triggers the quarterly obligation. |
| Coffee Shop / Café | Required | Coffee shops and cafés with at least one W-2 employee are covered employers under Arizona's unemployment insurance law (A.R.S. § 23-613) and must submit quarterly wage and contribution reports to the Arizona Department of Economic Security. |
See which restaurant types need this requirement — and which don't.
See Full Requirements →Field-by-Field Guide (23 Fields)
19 of 23 auto-filledFederal Employer Identification Number (EIN)
textEnter your 9-digit Federal Employer Identification Number in XX-XXXXXXX format, exactly as it appears on your IRS SS-4 confirmation letter or federal payroll tax filings.
COMMON MISTAKE: Entering a Social Security Number instead of the EIN, or omitting the hyphen — both cause the Arizona DES system to reject the filing as unmatched to your account record.
Business Legal Name
textEnter the full legal name of your business exactly as it is registered with the Arizona Corporation Commission or the Arizona Secretary of State — not a trade name or DBA.
COMMON MISTAKE: Using a shortened trade name or DBA (e.g., 'Joe's Grill' instead of 'JMK Restaurant LLC') will cause a name mismatch against the DES employer record and trigger a manual review delay.
State UI Account Number
textEnter your Arizona Unemployment Insurance (UI) employer account number as assigned by the Arizona Department of Economic Security (DES) when you registered as an employer — typically found on prior quarterly filings or your DES employer registration confirmation.
COMMON MISTAKE: Confusing the State UI Account Number with the Arizona DES Account Number or the EIN; these are three distinct identifiers and each must appear in its own field.
Arizona DES Account Number
textEnter the Arizona Department of Economic Security account number assigned to your business, which is distinct from your UI account number and can be found on your DES employer correspondence or online portal account summary.
COMMON MISTAKE: Transposing digits or entering the State UI Account Number in this field — both cause a system mismatch that routes the filing to manual correction, adding 2–4 weeks to processing.
Mailing Address
textEnter the complete mailing address where the Arizona DES should send correspondence about this filing, including street number, street name, suite or unit number if applicable, city, state abbreviation, and ZIP+4 code.
COMMON MISTAKE: Using the restaurant's physical location address when the business receives mail at a separate administrative or PO Box address — this causes DES notices and deficiency letters to go undelivered.
Phone Number
textEnter a 10-digit U.S. phone number in (XXX) XXX-XXXX or XXX-XXX-XXXX format for the contact person responsible for this filing — DES uses this number if they need to resolve discrepancies before processing.
COMMON MISTAKE: Entering an extension-only or general restaurant front-of-house number that staff may not answer during business hours, causing DES follow-up calls to go unanswered and delaying resolution.
Reporting Quarter
textEnter the calendar quarter being reported: Q1 (January–March), Q2 (April–June), Q3 (July–September), or Q4 (October–December), using the format specified on the Arizona DES form instructions (e.g., '1', '2', '3', or '4').
COMMON MISTAKE: Reporting the quarter in which you are filing rather than the quarter in which the wages were actually paid — for example, filing a Q1 return in April but mistakenly entering '2' for the current quarter.
Reporting Year
textEnter the four-digit calendar year (e.g., '2026') in which the reported wages were paid — this must match the quarter and year combination on file with Arizona DES.
COMMON MISTAKE: Entering the current filing year when the wages were actually paid in a prior year (common for late fourth-quarter filings submitted in January), which creates a period mismatch against DES records.
Submission Date
textEnter the actual date you are submitting the form in MM/DD/YYYY format — Arizona DES uses this date to determine whether the filing is timely (quarterly deadlines fall on the last day of the month following the close of each quarter).
COMMON MISTAKE: Backdating the submission date to appear timely when the filing is late — Arizona DES cross-references the submission date against the system receipt timestamp, and discrepancies can result in penalty assessments.
Total Gross Wages Paid
textEnter the total gross wages paid to all employees during the reporting quarter in dollars-and-cents format (e.g., '47382.50') — this figure must include all taxable and non-taxable compensation before any deductions, and must reconcile with your individual employee wage detail lines.
COMMON MISTAKE: Entering net wages (after deductions) instead of gross wages, or omitting tips and other supplemental compensation — both cause the total to mismatch the sum of individual employee records, triggering an automatic discrepancy flag that requires manual correction and adds 2–3 weeks to processing.
ApronPrep auto-fills 19 of 23 fields from a single compliance interview — no re-typing, no guessing what the government expects.
Top 5 Quarterly Contribution and Wage Report Mistakes
1. Misreporting Total Taxable Wages vs. Total Gross Wages
The most common filing error is entering total gross payroll in the taxable wages field instead of the wages subject to Arizona unemployment insurance tax — which excludes amounts above the $8,000 annual wage base per employee. For example, if a line cook earned $22,000 in the calendar year, only $8,000 of that should appear as taxable wages on the Q4 report. Overstating taxable wages triggers an inflated contribution due, while understating it results in a deficiency notice from the Arizona Department of Economic Security (DES) and potential interest charges. Cross-reference each employee's year-to-date wages before completing this field every quarter.
2. Using the Wrong Employer Account Number
Arizona DES issues a state unemployment insurance (UI) account number that is distinct from your Federal Employer Identification Number (FEIN) — entering your FEIN in the DES account number field is one of the leading causes of unprocessed filings. A correct Arizona UI account number follows the format XXXXXXX-X (seven digits, a dash, then one digit). If your filing is submitted under the wrong identifier, DES cannot match it to your account, which can result in a delinquency notice even though you filed on time — adding 3–4 weeks of back-and-forth correspondence to resolve. Locate your DES account number on your original employer registration confirmation letter or by logging into the Arizona Unemployment Tax and Wage System (UCTS) portal.
3. Missing the Quarterly Deadline and Incurring Late Penalties
The Quarterly Contribution and Wage Report is due by the last day of the month following the close of each calendar quarter — April 30, July 31, October 31, and January 31. A significant number of Phoenix restaurant operators miss the Q1 deadline (April 30) because it falls close to federal tax filings and is easy to overlook amid other obligations. Late filing triggers a penalty of 1% of taxes due per month (minimum $35), plus interest on any unpaid contributions, per Arizona Revised Statutes § 23-751. Set a recurring calendar reminder 10 business days before each deadline to allow time to gather payroll records, verify employee wage totals, and correct any data entry errors before submitting.
Skip the Paperwork on Your Quarterly Contribution and Wage Report
ApronPrep auto-fills 19 of 23 fields from one compliance interview.
No credit card required
Quarterly Contribution and Wage Report by City in Arizona
| City | Fee Range | Timeline |
|---|---|---|
| Mesa | ||
| Phoenix | Due by the last day of the month following the end of the calendar quarter (approximately 30 days after quarter end) | |
| Tucson |
Timeline: Varies
Gather payroll records for the calendar quarter
Collect all payroll documentation for the specific quarter (Q1: Jan–Mar, Q2: Apr–Jun, Q3: Jul–Sep, Q4: Oct–Dec). You'll need pay stubs, timesheets, and gross wage totals for each employee. Most restaurants complete this step in 1–2 hours by pulling records from their payroll system or accountant.
Complete the Quarterly Contribution and Wage Report form with employer and employee information
Fill out the Arizona Department of Economic Security (DES) form with your business EIN, account number, and a line-by-line entry for each employee (name, SSN, gross wages, unemployment insurance contributions). ApronPrep auto-populates employer data and calculates contribution amounts — manual entry typically takes 30–45 minutes for a restaurant with 15–25 staff.
Verify all employee names, SSNs, and wage amounts for accuracy
Cross-check each employee record against your payroll records — SSN mismatches and transposed wage amounts are the #1 cause of DES rejection and processing delays. Spend 2–3 minutes per employee; most restaurants flag 1–2 errors during this step.
Where to Apply
Applications go to the Arizona department of unemployment assistance. Local procedures and fees may vary — select your city below.
Other Requirements You'll Need
This is one of 13 requirements for opening a restaurant in Arizona.
ADA Compliance Self-Certification
federal
Alarm System Permit/Registration
local
Alcohol Server Training Certification
state
Annual Report Filing
state
See all co-required forms and how they connect to your compliance dossier.
See All RequirementsThe timeline varies depending on your filing method and the Arizona Department of Economic Security (DES) processing queue — contact DES to confirm current processing times for your specific situation. Most employers file quarterly contributions and wage reports electronically through the state system, which typically processes within 1–2 business days once submitted, though paper submissions may take longer. If you're setting up payroll for the first time, you'll also need to complete Arizona Employer Registration for Unemployment Insurance before your first quarterly filing.
There is no separate government filing fee for submitting a quarterly contribution and wage report to the Arizona Department of Economic Security — the report is a mandatory filing requirement at no cost. However, you are responsible for paying the unemployment insurance contributions and wage taxes calculated on the report itself, which are based on your payroll and tax rate. For questions about your specific contribution amounts or tax obligations, contact the Arizona DES Unemployment Insurance Division to verify your account details.
No — a quarterly contribution and wage report cannot be transferred between locations because it is filed under a specific Employer Identification Number (EIN) and account with the Arizona Department of Economic Security. If you're opening a second restaurant location or relocating, you'll need to file separate quarterly reports for each business entity or update your DES account address if it's the same employer. Before opening a new location, you should also complete Arizona Retail Food Establishment License registration for that location.
The quarterly contribution and wage report is not a permit that you renew — it is a mandatory filing you submit every quarter (January, April, July, and October) as long as you have employees on payroll in Arizona. You must file even if you had zero wages or no employees that quarter, per the Arizona Department of Economic Security requirements. Missing a deadline can result in penalties and interest charges on unpaid contributions — contact DES to confirm the specific due date for your account.
Late or missing quarterly reports trigger penalties and interest charges assessed by the Arizona Department of Economic Security — the amount depends on how late the filing is and your payment history. Repeated non-compliance can result in wage garnishment, license suspension, or loss of unemployment insurance eligibility for your employees. If you've missed a deadline, contact the DES Unemployment Insurance Division immediately to file a late report and discuss any penalty relief options available.
If each location has a separate Employer Identification Number (EIN) and is registered as a separate business entity, you must file separate quarterly reports with the Arizona Department of Economic Security for each entity. If all locations operate under a single EIN, you file one consolidated quarterly report that includes employees from all locations. To clarify your filing structure, contact DES or consult with a payroll accountant — incorrect consolidation or separation of reports can trigger compliance audits.
About This Data
This guide is generated from ApronPrep's compliance dossier system, which uses 53 parallel AI authority experts to discover requirements, then downloads actual forms and generates field-level intelligence for each one.
For Arizona specifically, we have analyzed compliance dossiers for 3 cities (Mesa, Phoenix, Tucson), generating Rich FILs (Form Intelligence Layers) with 23 form fields analyzed for this requirement. Fee data is sourced from actual county department fee schedules, not estimates.
Our data is verified against official government sources and updated when regulatory changes are detected. If you find an error, please report it — accuracy is our core commitment.
Sources
- State unemployment insurance act, employer registration requirements
- Phoenix — Department of Unemployment Assistance / Employment Security
This Form Is One of 60+ Requirements.
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