HAR § 18-235-33-03 — Payroll factor; numerator

The numerator of the payroll factor is the total amount paid in this State during the tax period by the taxpayer for compensation. If compensation paid to employees is included in the payroll factor by use of the cash method of accounting or if the taxpayer is required to report compensation under that method for unemployment compensation purposes, it shall be presumed that the total wages reported by the taxpayer to this State for unemployment compensation purposes constitute compensation paid in this State except for compensation excluded under sections 18-235-33-01 to 18-235-34-01. The presumption may be overcome by satisfactory evidence that an employee’s compensation is not properly reportable to this State for unemployment compensation purposes.