ARS § 23-571

23-571 - Tax obligations and incentives 23-571 . Tax obligations and incentives A. This article does not relieve a client from paying any tax liability that is due under title 42 or 43. B. Any tax on professional employer services shall be limited to the administrative fees. C. For the purposes of tax credits and any other economic incentives provided by this state that are based on employment, covered employees shall be deemed employees of either the client or the professional employer organization. Either the client or the professional employer organization, but not both, shall be entitled to the benefit of any tax credit, economic incentive or any other benefit resulting from the employment of covered employees of the client. If the amount of any credit or incentive is based on the number of employees, only the covered employees who actually work for the client shall be considered employed and the covered employees who work for other clients of the professional employer organization shall not be considered.