The Arizona Department of Revenue has announced that a revised Form A-4 applies effective January 31, 2023, to take into account the new flat tax of 2.5% effective January 1, 2023 under SB 1828. (See EY Tax Alert 2022-1645.)

The Department further instructs every Arizona employer to provide to their employees by January 31, 2023 the 2023 Form A-4, which the employees must complete and submit to their employers. (See the top of the 2023 Form A-4.)

Alternate forms that may also be submitted by qualified employees include:

• A-4V, Voluntary Withholding Request for Arizona Resident Employed Outside Arizona
• WEC, Withholding Exemption Certificate (for Arizona Nonresidents)
• WECI, Withholding Exemption Certificate, Native Americans with Instructions
• WECM, Withholding Exemption Certificate for Military Spouses

Prior versions of the Form A-4 on file with the employer are not valid for withholding purposes after January 31, 2023. If employees do not submit the 2023 Form A-4, employers are instructed to use the default withholding rate of 2.0%.

Employers should retain Forms A-4 in their employee/tax records; the new Forms A-4 are not sent to the Department.

In lieu of a paper Form A-4, employers may use a substitute electronic Form A-4 that can be updated for 2023 with the new withholding percentages.

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Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

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