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AZ.gov Arizona's Official Web Site
State of Arizona
Department of Revenue

Notice to all Payroll Service Companies

(Last updated June 18, 2012)

Go to https://efile.aztaxes.gov/AZFSETPortal and complete the registration process!

Upon completion of the registration process PSCs can begin to transmit withholding tax returns and payments.


  • Per Arizona Revised Statute (ARS) § 43-419; if a PSC fails to file withholding tax return and payment electronically, the PSC will be assessed a (PSC) penalty of $25 per client, per return and payment.  This penalty is separate and apart from any Late File or Late Payment penalty that may be assessed under ARS § 42-1125.
  • Definition of a Payroll Service Company; read Arizona Revised Statute § 43-418.
  • For answers to frequently asked questions click here.
  • Please visit our AZFSET Resource Page for more information and documentation specific to AZFSET.

Payroll Service Company Legislation

New statutes have been enacted that affect persons and organizations that provide payroll services to Arizona employers. The new statutes, 43-418 and 43-419, establish new requirements for these service providers and penalties for non-compliance. For purposes of the new statutes, a payroll service company is defined as a person or company who has custody or control over a client’s monies for the purpose of paying the withheld taxes and filing returns of a client with the Department of Revenue. For more detailed information, please reference the FAQ’s.