Effective May 1, 2009, new withholding Chart 3 took effect, increasing the percentage of federal income tax to be withheld for Arizona withholding tax purposes. Employees subject to Arizona withholding should see the impact in their next paycheck. Chart 3 applies to wages paid after April 30, 2009 and before January 1, 2010. Withholding Chart 4, which has also been released by the Arizona Department of Revenue (AZDOR), will apply to wages paid after December 31, 2009 and before July 1, 2010. Wages paid after June 30, 2010 will have withholding tax calculated based on new tables yet to be released by the AZDOR and will no longer have tax withholding calculated based on a percentage of federal withholding.
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CHART 3 |
CHART 4 |
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Annual Compensation Less Than $15,000 |
Annual Compensation $15,000 or More |
Annual Compensation Less Than $15,000 |
Annual Compensation $15,000 or More |
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Old Rate |
New Rate |
Old Rate |
New Rate |
Old |
New Rate |
Old |
New Rate |
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10% |
11.5% |
N/A |
N/A |
11.5% |
10.7% |
N/A |
N/A |
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19% |
21.9% |
19% |
21.9% |
21.9% |
20.3% |
21.9% |
20.3% |
|
23% |
26.5% |
23% |
26.5% |
26.5% |
24.5% |
26.5% |
24.5% |
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25% |
28.8% |
25% |
28.8% |
28.8% |
26.7% |
28.8% |
26.7% |
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31% |
35.7% |
31% |
35.7% |
35.7% |
33.1% |
35.7% |
33.1% |
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37% |
42.6% |
37% |
42.6% |
42.6% |
39.5% |
42.6% |
39.5% |
A revised Arizona Form A-4, Employee’s Arizona Withholding Percentage Election, is now available to allow employees to adjust their withholding. Withholding chart 1 and withholding chart 2 for pension and annuity payments were also released and are identical to the changes for those earning less than $15,000. Contact Vision Payroll if you have any questions on the withholding changes.
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