employer surcharge; workforce development

HB 2751 creates a 1% surcharge on payroll taxes for Arizona businesses employing 50 or more people, starting in 2026. This surcharge applies to all business types (including corporations, partnerships, and LLCs), with co-owners paying based on their ownership share. The collected funds will be deposited into a new Community College Apprenticeship and Workforce Development Program Fund. The money will specifically support community colleges in developing apprenticeship and workforce training programs, directly benefiting workers seeking job skills and businesses needing trained employees.