On July 1, 2010 the Arizona withholding rates will change. They are currently based on a percentage of the Federal withholding. Starting on July 1, 2010 the rates will change to being based on a table prescribed by the Arizona Department of Revenue. The rates effective July 1, 2010 have recently been issued along with the new Form A-4. This form will need to be completed by employees prior to the change on July 1, 2010.
The tax rate did not increase – Arizona is now using a different method for calculating withholding
The following table can be used as a guide for determining your new rate:
| If your rate Before July 1 was |
Then use this rate After June 30 |
|
| 10.7% | 1.3% | |
| 20.3% | 1.8% | |
| 24.5% | 2.7% | |
| 26.7% | 3.6% | |
| 33.1% | 4.2% | |
| 39.5% | 5.1% |
Should you have questions regarding this post or any other tax needs, contact us at Schutte & Hilgendorf, PLLC, Prescott accountants serving the greater Yavapai County with tax, accounting, auditing, and QuickBooks consulting expertise.
