AZ A-4 Form Updated to Reflect Lower Rates

At A Glance

• Arizona issued an updated Individual Income Tax Withholding form, A-4, to reflect Arizona's lower individual income tax rates.
• All taxpayers must complete a new A-4 form for 2023opens in a new tab.
• If an employee does not submit the A-4 within two pay periods of the January 31 due date, the employer must use the default tax rate of 2% beginning in 2023 and until you receive an updated form.

What are the Changes to Arizona's A-4 Form?

Arizona issued an updated withholding certificate, A-4, to reflect its lower individual income tax rates. The lower rates range from 0.5%-3.5%, with the familiar options to withhold 0% or add additional withholding.

All employers are mandated to provide this form to their Arizona employees by January 31, 2023. All taxpayers are required to complete a new A-4 for 2023. If an employee does not provide a new form within two pay periods of the January 31 due date, the employer must use the default rate of 2%.

Administrators may use this employee handoutopens in a new tab, and the available A-4 instructions to explain new withholding elections.

• Tax rates for the A-4 form currently are: 0.5%, 1.0%, 1.5%, 2.0%, 2.5%, 3.0%, 3.5%
• Tax rate for the A-4 form prior to 2023 were: 0.8%, 1.3%, 1.8%, 2.7%, 3.6%, 4.2%, 5.1%

Next Steps

• Employers must make the necessary adjustments for the updated Arizona withholding certificate, A-4, within two pay periods of the January 31 due date.
• We will continue to communicate updates as they become available.

For further information, please visit the agency's withholding tax pageopens in a new tab.

Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.