Arizona Employee Tax Withholding Help

Payroll Help

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Arizona Employee Tax Withholding Help

Background

When you pay employees in Arizona, you will need to set up their tax allowances that they completed on their Arizona tax withholding form.  For more information and instructions, see the Employers Instructions for the Employee’s Arizona Withholding Election and a blank copy of the Employee’s Arizona Withholding Election Form A-4.

How to Set up Arizona Employee Taxes in Patriot Software

When you enter tax allowances for employees in Arizona, you will need to enter the percentage rate the employee has elected on their form.  For new customers adding employees in the wizard, this is found under the Tax Information page for the employee.

For employees you add after you complete the wizard,  you will be prompted to enter their tax info under Payroll > Employees > Employee List > Click the Employee Name > Taxes > Edit.  These fields are under the “State and Local Withholding” section.

State Elected Percentage Rate:  Enter the percentage the employee has checked on their Arizona Withholding Election Form A-4 form.  If the employee has not yet completed an A-4, employers are instructed to enter a percentage of 2.7% until you receive a completed form. Arizona’s current withholding tables are based on these percentage rates of gross taxable wages. Note: These are the only values accepted in the “State Elected Percentage Rate” field :

State Withholding Percentages
Percentage Rates 0.8% 1.3% 1.8% 2.7% 3.6% 4.2% 5.1%

 

Additional State Withholding:  If the employee wants an extra amount to be withheld each paycheck, enter it here.  Otherwise, leave this field blank.

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