December, 17th 2024
Every state in the country has a unique paradigm for income tax and state unemployment insurance rates. Located below are relevant rates and complance information by state.
Employers must also adhere to federal income tax withholding rules as well. More information can befound here about federal rates.
Alternatively, employers can automatically calculate payroll witholding information by using ezPaycheck.
| State Abbreviation | AZ |
|---|---|
| State Tax Withholding State Code | 04 |
| Acceptable Exemption Form | A-4 |
| Basis For Withholding | State Exemptions |
| Acceptable Exemption Data | 0.5, 1.0, 1.5, 2.0, 2.5, 3.0, 3.5 |
| TSP Deferred | Yes |
| Special Coding | |
| Additional Information | None |
Arizona state tax is based on a percentage of theArizona State taxable wages.
When aForm A-4has not been filed, or an invalid status is found for an employee on the database, the employee's taxes will automatically be withheld at the higher rate of2.7%, regardless of annual income. To elect a percentage lower or higher than2.7%, employees must submit aForm A-4.
The employee can submit aForm A-4for a minimum withholding of1.3%of the amount withheld forstateincome tax if the annual wages are less than $15,000, or1.8%of the amount withheld forstateincome tax if the annual wages are $15,000 or more.
An employee required to have1.3%deducted may elect to increase this rate to1.8%, 2.7%, 3.6%, 4.2%, or 5.1%by submitting aForm A-4. Similarly, an employee required to have1.8%deducted may choose to increase this rate to2.7%, 3.6%, 4.2%, or 5.1%by submitting aForm A-4.
The old rates will convert to the new Arizona state rates. Employees with an exempt status will remain the same.
Note:Do not enter the decimal point when entering the percentage in theTotal Number Of Allowances Claimedfield. For example, to enter1.3%, type013.
If Block 3 is checked onForm A-4, enter0NL. No tax will be withheld due to total exemption eligibility.
Want to calculate in a easier way? Learn how to calculate Arizona taxes via ezPaycheck below.
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ezPaycheck is an easy-to-use payroll software designed with small businesses in mind: simple, reliable, and affordable. Our developers designed it to be a in house payroll tax solution for small businesses to calculate taxes, print paychecks for employees & contractors, generate reports and print tax forms. No internet connection is needed.
Try it free for 30 days with no obligation and no credit card needed. ezPaycheck is available for both Windows and Mac computers.
