Arizona Form A-4

In 2021, the Arizona legislature passed Senate Bill 1828, which significantly reduced the state’s individual income tax rates beginning in 2022. This change required employers to distribute a new Arizona Form A-4, Employee’s Arizona Withholding Election, to all employees. The updated form reflects the new lower rates and retains the option for zero withholding, as well as a line for additional withholding. Employers must provide the new form to employees upon hire and keep a copy for their records as well.

Employees can choose to have a fixed percentage (up to 2.0%) of their wages withheld for state income tax. This can be done by completing an Arizona Form A-4. New employees must submit a completed form within their first five days of employment. Employees may also change their withholding amount by submitting a new Arizona Form A-4 at any time during the year.

If an employee fails to submit a completed Form A-4 by this date, the state withholding rate will default to 2%. The employee must submit the new form within two pay periods of the deadline to avoid under-withholding and penalty payments. Employees should keep a copy of the form for their own records. With our free online arizona a-4 form editor, it’s easy to make changes and save your document for future reference. Our tool allows you to type text, complete fillable fields, insert images, highlight or blackout data for discretion, and add comments.

How to Complete Arizona Form A-4?

It contains seven withholding rate boxes and retains both the zero withholding rate option and the line for additional Arizona withholding.

Employees must use the form to choose the appropriate amount of money to be withheld from each paycheck. If their tax situation changes, they can also refigure their withholding allowance each year. The federal withholding calculator is useful for determining the correct amount to be withheld from each paycheck.

The new form also includes a field for indicating whether the worker’s “gross taxable wages” include employer-sponsored pretax deductions such as health insurance premiums. If so, the withholding amount will differ from the number in box 1. For federal tax purposes, “gross taxable wages” is generally defined as box 1 of an employee’s W-2. Employees who want to change their withholding amounts should submit a new Arizona A-4 form, preferably within their first five days of employment.

Once an employee has filled out their new Form A-4, they can submit it to their employer. The employer must then adjust their withholdings accordingly. The employer should keep a copy of the completed form with the employee’s other tax records. If an employee does not submit a Form A-4, the employer should withhold a default rate of 2.0%. If the employee would like to change the withholding percentage, they must complete a new form.