|Office of the
|P.O. Box 60000
TAXES 11-23, Arizona State Income Tax Withholding
|Title:||I, Payroll/Personnel Manual|
|Chapter:||28, Section 2, Tax Formulas (TAXES)|
|Bulletin:||TAXES 11-23, Arizona State Income Tax Withholding|
|Date:||April 15, 2011|
|To:||Subscribers of Tax Bulletins|
Beginning with wages paid for Pay Period 12, 2011, the National Finance Center (NFC) will make the following changes to the State of Arizona income tax withholdings:
- An additional withholding percentage of 0.8 percent will be added to the percentages that can be elected for withholding.
- The $15,000 annual wages threshold will be removed. Employees can now elect any of the valid percentage rates regardless of annual compensation. Employees who have annual wages exceeding $15,000 who are currently claiming the 1.3 percent tax rate will have an automatic reduction in their state withholding rate from 1.8 percent to 1.3 percent.
Note: If the employee chooses to use another percentage rate, he/she must file a new Arizona Form A-4, Employee's Arizona Withholding Percentage Election, (see attachment) indicating his/her selection.
When entering the Arizona state tax percentage, enter the percentage rate as shown below. Precede with a zero, but do not enter the decimal point.
|Percentage Rate||Data Entered|
To view the updated tax formula, go to NFC's Home Page (www.nfc.usda.gov) and click the Publications link at the top of the page. At the Publications page right-hand menu, click Tax Formulas and select the appropriate state from the map provided. Changes to the tax formula are identified by " ."
For questions about NFC processing, contact the Payroll/Personnel Call Center (Option 3, then Option 1) at 1-800-981-3026 or the EmpowHR Help Desk at 1-888-367-6955.
RANDY L. SPEED, Director
Government Employees Services Division