43-1143

43-1143. Payroll factor

The payroll factor is a fraction, the numerator of which is the total amount paid in
this state during the tax period by the taxpayer for compensation, and the denominator of
which is the total compensation paid everywhere during the tax period other than
compensation paid by either:

1. A foreign corporation which is not itself subject to the tax imposed by this
title, unless the corporation is subject to the tax as a member of an Arizona affiliated
group, as defined in section 43-947.

2. An insurance company that is exempt from tax under section 43-1201.