Arizona Unemployment Insurance

The laws and regulations for eligibility of Unemployment Insurance (UI) in the state of Arizona is governed by the State Rules and Employment Security Law of Arizona. The following sections detail the processes, rules, rights, and responsibilities of persons wishing to file for Unemployment Insurance benefits directed by the Department of Economic Security (DES) of Arizona.

Arizona unemployment insurance is not form of welfare assistance; it is an insurance program intended to provide you with a temporary income while seeking reemployment, should you become unemployed by no fault of your own. Benefits claimed are considered taxable income. It is your responsibility to report benefit amounts on your Federal Income Tax Return.

Any unemployment insurance benefits you collect from the program are considered taxable income. You are responsible for reporting unemployment insurance income on your federal income tax return for the year.

When you are approved to claim weekly unemployment insurance benefits, you have the option to have 10 percent withheld toward your federal income tax. You will receive a 1099-G form from the Department of Economic Security at the end of late January showing the total amount of benefits you collected during the previous year.  

Workers do not contribute any taxes, and no monies are deducted from earned wages to be eligible to collect benefits. Employers pay unemployment insurance benefit taxes in the state of Arizona.