Arizona Employees Must be Provided the New AZ Withholding Form

Arizona Employees Must be Provided the New AZ Withholding Form

With the change to Arizona’s income tax rates to a lower rate, the Department of Revenue has updated the 2023 Arizona employee income tax withholding form to reflect new lower withholding rates. Every Arizona employer is required to make this form available to its Arizona employees by January 31, 2023. The new A-4 form has seven new withholding election rate boxes while retaining both the zero withholding rate option and the line for additional Arizona withholding. If an employee fails to fill out the new A-4 form, the default rate for withholding will be 2.0%. Do not send these withholding forms to the Department, they should be kept by the employer and the employee with their tax records.

Please ensure you have provided this form to your employees and that your payroll system has updated the withholding rates starting with 2023 payrolls.