In order to elect a percentage less than or greater than 2.7%, employees must submit a Form A-4. When a Form A-4 has not been filed, or an invalid status is found for an employee on the database, the employee's taxes will automatically be withheld at the higher 2.7%, regardless of his/her annual income. Determine the Total Number Of Allowances field as follows: Arizona State Income Tax Withholding InformationĪrizona state tax is based on a percentage of the Arizona State taxable wages.
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