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 2023.
• 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 handout, 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 page.

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.