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AZ A-4 Form Updated to Reflect Lower Rates

November 07, 2022

Arizona issued an updated Individual Income Tax Withholding form, A-4, to reflect Arizona's lower individual income tax rates.

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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 an updated A-4 by February 15, 2023, the payroll provider will default to the tax rate of 2% until it receives an updated A-4.

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 by February 15, 2023, the agency mandates that the payroll provider use the default rate of 2%.

Next Steps

  • Paylocity will update the new rates and make the necessary adjustments for the updated Arizona withholding certificate, A-4.
  • We will also continue to communicate updates as they become available.

For further information, please visit the agency’s website.

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.

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