Arizona Form A-4 Effective January 31, 2023

 |  2022 Arizona Tax, ADOR, Arizona income tax

The Arizona Department of Revenue (ADOR) updated the Employee’s Arizona Withholding Election form, Form A-4, to reflect Arizona’s seven lower individual income tax rates. The new Form A-4 also retained both the zero withholding rate option and line for additional Arizona withholding. Every Arizona employer must provide the new tax rate options to Arizona employees by January 31, 2023 in the method of their choosing, either electronically through an online portal, fillable form, or paper form. The default rate will be 2.0% if an employee fails to fill out the new Form A-4. The form should not be submitted to ADOR. It should be kept by the employer and employee with their tax records.
Why Did Form A-4 Change for Tax Year 2022?
Due to passage of Senate Bill 1828 by the Arizona Legislature in the 2021 session, Arizona’s individual income tax rates were substantially reduced starting with the 2022 tax year. The previous Form A-4 withholding rates are no longer representative of the new lower income tax rates.
Frequently asked questions can be found on ADOR’s website.

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