What is the Arizona Form A-4?
The Arizona Form A-4, also known as the Employee’s Arizona Withholding Election, is a document that employees in Arizona use to indicate their preferred percentage of gross taxable wages to be withheld for state income tax. Employees can choose from various percentages or elect not to have any state income tax withheld if they anticipate no tax liability for the year.
Why do I need to complete the Arizona Form A-4?
Arizona law requires employers to withhold state income tax from employees' wages for work done in Arizona. The amount withheld is based on the percentage indicated on the completed Form A-4. This form allows employees to have control over the amount of tax withheld from their paychecks.
What are "Gross Taxable Wages"?
Gross taxable wages are the wages that will typically appear in box 1 of your federal Form W-2. They represent your total gross wages minus any pre-tax deductions, such as health insurance premiums. This is the amount used to calculate the Arizona state tax withholding.
When should a new employee complete Form A-4?
New employees should complete the Arizona Form A-4 within the first five days of employment to select their desired Arizona withholding percentage or to choose an additional amount to be withheld from each paycheck. Without this form, employers are required to withhold at a standard rate of 2.7%.
Can current employees change their withholding amount?
Yes, current employees can change their withholding amount or percentage anytime by submitting a new Arizona Form A-4 to their employer. This allows adjustments to withholding based on changes in financial or personal circumstances.
How do I elect a withholding percentage of zero?
To elect a withholding percentage of zero, you must certify on the Arizona Form A-4 that you expect to have no Arizona income tax liability for the current year. However, if your financial situation changes, making you liable for state income tax, it is your responsibility to submit a new form with an updated withholding percentage.
What if I’m a nonresident working temporarily in Arizona?
Nonresident employees working in Arizona for temporary periods are still subject to Arizona income tax and can choose to have Arizona income tax withheld from their wages. By completing the Arizona Form A-4, nonresidents can request their employers to withhold state income tax from their Arizona-source compensation.
Does electing not to withhold Arizona income tax relieve me from tax liabilities?
No, electing a zero withholding percentage does not exempt you from owing state income tax. You are still responsible for reporting your income and paying any Arizona income tax due when filing your annual tax return. If you anticipate owing state income tax, it’s advisable to adjust your withholding preferences.
What happens if I do not submit an updated Form A-4 for the next calendar year?
If you do not submit an updated Form A-4 for the following calendar year, your employer may default to withholding Arizona income tax from your wages at the previously determined rate. It's important to review and update your withholding preferences annually or whenever your financial situation changes.
Where should I submit the completed Arizona Form A-4?
Once completed, you should submit the Arizona Form A-4 to your employer. Your employer will use the information provided to adjust your state income tax withholding accordingly.