Ariz. Admin. Code § 6-3-1702

Current through Register Vol. 30, No. 24, June 14, 2024

Section R6-3-1702 - Maintenance and Inspection of Records

A. Each employing unit, as defined in A.R.S. § 23-614, including any employing unit which considers that it is not an employer subject to the Act or that services performed for it constitute exempt employment or do not constitute employment, shall establish and preserve true and accurate records of all disbursements made in cash, by check, or in any other medium. Such records shall contain the date of disbursement, the amount, or a clear identity of the form of remuneration if in any medium other than cash, the name of the payee and the purpose for the disbursement. Examples of records which shall be made available for audit, inspection or copying, as provided by subsections (C) and (E) of this regulation, include, but are not limited to, the following:

1. Check stubs and cancelled checks for all payments.

2. Cash receipts and disbursement records.

3. Payroll journal.

4. Purchase journal.

5. General journal.

6. General ledger.

7. Payroll tax reports for all federal and state agencies.

8. Individual earnings records.

B. Each employing unit shall establish and preserve records with respect to services performed for it which shall contain the following:

1. For each pay period:

a. The beginning and ending dates of such period.

b. The total amount of remuneration whether in cash, by check or in any other medium paid in such pay period and the date of such payment.

c. The dates in each calendar week on which there were the largest number of workers in employment and the number of such workers.

2. For each worker:

a. Full name.

b. Social Security account number.

c. Date on which the individual was hired, rehired, or returned to work after temporary layoff.

d. Date of and reason for separation from work.

e. Amount of remuneration whether in cash, by check, or in any other medium paid in each calendar quarter.

f. The place in which the services are performed. For the purpose of this record, the place where the services are performed shall be reported as the city or town in which the services are performed in Arizona, or the county in which the services are performed in Arizona, if outside such a city. If the services are performed in more than one such city, town, or county in Arizona, the place where the services are performed shall be reported as the city, town, or county in Arizona in which the base of operation is located. If the services are performed both within and without Arizona, the place where the services are performed shall be reported as the city, town, or county in Arizona in which the base of operations is located; or if the base of operations is not located in Arizona, as the city, town, or county in Arizona from which the services are directed or controlled; or if the place from which the services are directed or controlled is also outside Arizona, as the city, town, or county in Arizona where the individual resides.

g. The remuneration paid for each period showing separately:

i. Money wages, excluding special payments.

ii. Reasonable cash value, as determined by the Department, of the remuneration paid by the employing unit in any medium other than cash, but in no event shall such determined value be in an amount less than that provided by Department regulation where so provided, excluding special payments in a medium other than cash.

iii. Special payments which are not due on any pay day, including annual bonuses, gifts, and prizes. Value of special payments other than cash shall be determined as set forth in (ii) above.

3. In order for a determination of an employer's liability to be made, the employer's records are required to contain the information required in subparagraph (B)(1)(c) of this regulation. If the employer's records do not contain this information, it shall be presumed that all of the individuals performing services in the pay period performed services for some portion of the same day which is the day in which the largest number of individuals performed services in each week of the pay period.

C. The records required to be preserved in subsections (A) and (B) of this regulation shall be preserved for a period of not less than 4 full calendar years. Such records together with all other business records which, as determined by the Department, are reasonably necessary to verify the entries in such records or for a proper determination of coverage or tax liability or benefit eligibility shall be made available for audit, inspection or copying by the Department at any reasonable time and as often as may be necessary.

D. An employing unit shall no longer be required to preserve the records specified in subsections (A) and (B) with regard to all or certain individuals, services and remuneration after being notified in writing by the Department that those records are no longer required. Such notice from the Department shall be given only after the Department determines that the individuals, services and remuneration are not subject to the Act.

E. Any employing unit that does not maintain records in this state that contain the information prescribed in this regulation pertaining to services performed for it in this state shall, upon the request of a representative of the Department, make such information available to the Department at a location specified by the Department without reasonable delay.

Ariz. Admin. Code § R6-3-1702

Former Regulation 40-1; Amended effective June 2, 1980 (Supp. 80-3). Amended effective November 18, 1981 (Supp. 81-6).