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What is excess wages over normal wages?

Excess wages are the portion of wages paid in a quarter that are above the yearly taxable wage base.

Is Arizona unemployment taxable?

The answer is yes. In order to avoid a large tax bill at the end of the year, you can have income taxes deducted from each of your unemployment checks. You may choose to have federal income taxes withheld from unemployment compensation at the rate of 10% of the gross weekly unemployment benefit.

What are excess wages in Arizona?

(Excess Wages are wages in excess of the taxable wage amount, which is the first $7,000 paid to each employee each calendar year.) If you did not file such prior quarters via TWS, the system automatically \u201cknows\u201d this and prompts you to provide the Excess Wage amounts yourself.

What is Suta in Arizona?

The state unemployment insurance tax, called SUTA, is collected by the DES UI Tax Section. SUTA payments are used for the payment of unemployment insurance benefits. These contributions allow eligible individuals to receive Unemployment Insurance Benefits while they seek new employment.

Are unemployment benefits considered taxable income?

Yes, you need to pay taxes on unemployment benefits. Like wages, unemployment benefits are counted as part of your income and must be reported on your federal tax return. Unemployment benefits may or may not be taxed on your state tax return depending on where you live.

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