INSTRUCTIONS: ARIZONA QUALIFYING EMPLOYEES (Form 332-1/2) Arizona businesses use a form 332 to document qualified employees enrolled in healthy forest enterprises for which credit is being claimed by the employer. This form is now all part of form 332 but was made available in taxable years 2005 and 2006 as two separate forms bundled together (forms 332-1 and 332-2). This form can still be obtained from the website maintained by the Arizona Department of Revenue. Arizona Qualifying Employees 332-1/2 Step 1: In column a, enter the name of each employee for whom a credit is being claimed. Arizona Qualifying Employees 332-1/2 Step 2: In column b, enter the Social Security number of each employee for whom a credit is being claimed. Arizona Qualifying Employees 332-1/2 Step 3: In column c, enter the date on which the employee in question was hired. Arizona Qualifying Employees 332-1/2 Step 4: In column d, check the box if the employee was a resident of Arizona on the date on which they were hired. Arizona Qualifying Employees 332-1/2 Step 5: In column e, write a brief description of the employee's job duties. Arizona Qualifying Employees 332-1/2 Step 6: In column f, give the number of hours worked by the employee in this year. Arizona Qualifying Employees 332-1/2 Step 7: The second page is a schedule for calculating the credits claimed. In column a, give the name of the employee. Arizona Qualifying Employees 332-1/2 Step 8: In column b, give the Social Security number of the employee. Arizona Qualifying Employees 332-1/2 Step 9: In column c, indicate whether the employee is a first, second or third year employee. Arizona Qualifying Employees 332-1/2 Step 10: In column d, enter the total wages paid to the employee within the current tax year. Arizona Qualifying Employees 332-1/2 Step 11: In column e, enter either the maximum wages allowed for a first, second or third year employee as listed or the figure from column d, whichever is smaller. Arizona Qualifying Employees 332-1/2 Step 12: Add the values on lines 1 through 10. Enter the resulting sum on line 11. Arizona Qualifying Employees 332-1/2 Step 13: If you have additional qualifying employees, complete additional forms 332-2 as necessary.