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.
Arizona Senate Bill 1185 has decreased the amounts required to be withheld for Arizona withholding purposes. The new percentages will take effect starting January 1, 2010. Employers will need to print the new Form A-4 for all Arizona employees to complete prior to the new year.
On July 1, 2010 the rates will change again. Currently the rates are 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 should be released in late spring. A new Form A-4 will need to be completed by employees prior to the change on July 1, 2010. Check back with our website for future updates on new withholding rates and Form A-4.
The Arizona Department of Revenue has posted an information sheet on the changes and a list of the new withholding rates on their website.
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.
