Ariz. Admin. Code § 15-2B-102

Current through Register Vol. 30, No. 25, June 21, 2024

Section R15-2B-102 - Employment Excluded from Withholding

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.

B. Wages paid to a nonresident of Arizona engaged in any phase of motion picture production are not subject to withholding if the employee qualifies for a credit for taxes paid to the employee's state of residency or domicile. Before payment of the wages is due, the employer shall apply for an exemption by having the employee complete the withholding exemption certificate prescribed by the Department. The employer shall submit the completed certificate for each employee with the next quarterly return required by R15-2B-101(E).

Ariz. Admin. Code § R15-2B-102

Recodified at 6 A.A.R. 2308, filed in the Office of the Secretary of State June 2, 2000 (Supp. 00-2). Correction to manifest typographical error, under subsection R15-2B-102(A)(2), "used" corrected to "use' as adopted at 5 A.A.R. 3766 (Supp. 08-4).