2023 Arizona Form A4 Requirements for Employee State Income Tax Withholding
Effective January 31, 2023, employers must provide Arizona employees with an updated Form A-4 (aka "AZ W-4"), which reflects the State’s lower individual income tax rates. Arizona employers are required to make Arizona Form A-4 available to employees at all times and to inform them of Arizona’s withholding election options. Refer to Form A-4 Employer's Instructions for additional details and requirements.
Exempt employees are required to complete a new Arizona Form A-4 every year. Current nonexempt employees may complete an updated Form A-4 to elect a different Arizona withholding percentage or to change any extra amount to be withheld from their paycheck. New employees must complete Form A-4 within 5 days of employment. If the employee fails to complete Form A-4, the employer must withhold AZ income tax at the default rate -- 2.0% of the employee’s wages -- until the employer receives a completed form from that employee. All employees may update their Federal and State income tax withholdings anytime throughout the year.
The revised A-4 Form has seven new withholding election rate boxes while retaining both the “zero” withholding rate option and the line for additional Arizona withholding.
While we love to help, ASAP account managers cannot provide tax withholding guidance to employers or employees. Refer employees to the Arizona Department of Revenue’s website for tools to help calculate their state withholding rate. Please use our online employee forms to submit state withholding updates to ASAP. Do not send completed withholding forms to ASAP or AZ Department of Revenue. Retain the form with your employee’s records and encourage them to also keep a copy with their tax files.
AZ A4 Action Items for ASAP Payroll Clients
- Notify your Arizona employees of the state's new income tax rates and provide a copy of the revised 2023 Form A4 for electing their withholding percentage.
» All exempt employees must complete a Federal W-4 and State A-4 annually
» New employees must complete Form A-4 within 5 days of employment
» ASAP will apply the default rate of 2.0% until a 2023 Form A-4 is received from the employee
- Submit AZ state withholding updates to ASAP via our online employee forms, your payroll eSheet, or updated directly by an administrator or employee in the payroll program.
» Do not send a copy of Form A-4 to ASAP. Save the document with your HR files and encourage your employee to keep a copy with their tax records.
- Refer employees to the AZ State Withholding Calculator for guidance on electing their withholding percentage.
AZ Form A4 Resources
- Form A-4 Downloads and Instructions
- Arizona's Employees Have New Tax Withholding Options (Press Release & FAQs)
- AZ Individual Income Tax Withholding Calculator