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Employer’s Instructions for the Arizona Form
Employee’s Arizona Withholding Election A-4
For information or help, call one of these numbers: • A qualifying nonresident employee may use Form A-4 to
Phoenix (602) 255-3381 elect to have a percentage of his or her wages withheld to be
From area codes 520 and 928, toll-free (800) 352-4090 applied to his or her Arizona income tax liability.
Tax forms, instructions, and other tax information EMPLOYMENT REQUIRING WITHHOLDING
If you need tax forms, instructions, and other tax information, Withholding tax shall be deducted from the compensation of:
go to the department’s website atwww.azdor.gov. • Wages paid to an Arizona resident whose compensation is
Withholding Tax Procedures and Rulings for services performed within this state.
These instructions may refer to the department’s withholding • Wages paid to a nonresident employee who is in this state
tax procedures and rulings for more information. To view or solely for athletic or entertainment purposes.
print these, go to our website and click on Reports & Legal • Wages paid to part-time or seasonal agricultural employees
Research then click on Legal Research and select a Document whose principal duties are operating any mechanically-
Type and Category from the drop down menus. driven device in such operations.
Publications • Wages paid to a non-resident who is in this state for 60 or
To view or print the department’s publications, go to our more days in a calendar year for the purpose of performing
website and click on Reports & Legal Research. Then click on a service that will benefit the employer or a related entity.
Publications. EMPLOYMENT FOR WHICH WITHHOLDING MAY
Arizona employers are required to make Form A-4 available to BE ELECTED
employees at all times and to inform them of Arizona’s • A nonresident Arizona employee in this state for less than
withholding election options. 60 days may elect to have Arizona withholding amounts
Arizona income tax withholding is a percentage of gross subtracted from his or her paycheck and the employer must
taxable wages. "Gross taxable wages" is the amount that meets withhold tax based on the employee’s election to do so.
the federal definition of "wages." Generally, it is the amount • An out of state business may elect to withhold tax from the
included in box 1 of the employee’s federal Form W-2 at the nonresident employee before the 60 day limitation has
end of the calendar year. elapsed.
Employees elect the percentage of their gross taxable wages EMPLOYMENT EXCLUDED FROM WITHHOLDING
they wish to be withheld. They may also elect to have an extra NOTE: An employee exempted from withholding tax may not
amount withheld from each paycheck. be exempted from paying Arizona income tax.
COMPLETING ARIZONA FORM A-4 No withholding amount shall be deducted from:
• All employees are required to complete Form A-4. • Wages paid to an employee of a common carrier when that
• New employees must complete Form A-4 within 5 days of employee is a nonresident of Arizona and regularly
employment. If the employee fails to complete the form, performs services inside and outside the state.
the employer must withhold 2.7% of the employee’s wages • Wages paid for domestic service in a private home.
until the employer receives a completed Form A-4 from that • Wages paid for casual labor not in the course of the
employee. employer’s trade or business.
• Current employees must complete an updated Form A-4 to • Wages paid for part-time or seasonal agricultural labor
elect a different Arizona withholding percentage or to whose services to the employer consist solely of labor in
change any extra amount to be withheld from his or her connection with the planting, cultivating, harvesting or field
paycheck. packing of seasonal agricultural crops.
• An employee may elect an Arizona withholding percentage • Wages paid to a nonresident of Arizona who is solely in this
of zero if that employee expects to have no Arizona income state on a temporary basis for the purpose of performing
tax liability for the current taxable year. disaster recovery from a declared disaster during a disaster
o If an employee makes this election, his or her employer period.
will not withhold Arizona tax from his or her paycheck • Wages paid to a nonresident of Arizona engaged in any
for all payroll periods beginning after the date of the phase of motion picture production, if the employer applies
employee’s election. for an exemption from the withholding provisions, and the
o Each employee claiming to be exempt from Arizona department determines that the nonresident would be
withholding must renew this election annually. Each allowed a credit for taxes paid to his or her state of
employee who wishes to keep this election in the next residency or domicile.
taxable year must complete and provide to his or her • Wages paid to a nonresident of Arizona who is:
employer a new Form A-4 by February 15th of the o An employee of an individual, fiduciary, partnership,
following year. If the employee fails to provide an corporation, or limited liability company having
updated Form A-4 by February 15th, the employer will property, payroll and sales in this state, or of a related
with withhold Arizona income tax at the default rate, entity having more than fifty percent direct or indirect
2.7% until the employee provides the employer with an common ownership.
updated Form A-4. o Physically present in this state for less than sixty (60)
days in a calendar year for the purpose of performing a
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