Ariz. Admin. Code § 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).
Notes
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