10/27/2003
CONTACT: Michelle Bolton (602) 263-7690
Measure Called a Compliance Nightmare for Small Businesses
ARIZONA, October 27, 2003 -- Arizona's largest small-business organization today applauded the Legislature's passage of HB 2001, an emergency measure that repeals the mandatory minimum withholding requirement of $5 per month. This issue was passed during the 2003 regular legislative session. It applies to all employers regardless of size and all employees regardless of income or deductions.
NFIB/Arizona State Director Michelle Bolton said the small-business community applauds the effort and appreciates the work of the Legislature for repealing the measure. Bolton also praised Gov. Napolitano for signing it.
"In spite of the intentions of the bill's sponsor, this issue created an additional compliance cost for small business," said Bolton. "Many small-business owners have referred to this law as a nightmare to implement in their own personal businesses. They wanted immediate repeal to remedy their problems with this law."
Whether small-business owners subscribed to a payroll service, contracted with an accountant or CPA, used QuickBooks or other payroll software, or did their own taxes by hand, they were affected by this measure.
The repeal was approved during a special session of the Legislature, which continues this week. The session is focusing on funding Child Protective Services and several other issues.
