A change in Arizona’s withholding tax rates and base takes effect on July 1, meaning that all employees are required to fill out a new withholding form by that date.

The new Arizona withholding tax table is based on a percentage of gross taxable wages.  Until now, Arizona’s  withholding had been based on a percentage of an employee’s federal tax withholding.

Employees can find the new filing form A-4 online at: www.azdor.gov/forms/withholding.aspx.

The new tax law also applies to those who are receiving an annuity or pension.  They should complete a revised Arizona Form A-4P and send it to the payor of the annuity or pension.

Ref:   AZ – Senate Bill 1185 (Laws 2009, 1st Reg. Session, Chapter 2)