Arizona Withholding Rate Change 2009

The state of Arizona has announced an increase to employee withholding rates for state income tax purposes. Effective May 1, 2009 to December 31, 2009, the withholding rates will increase as follows:

• employees currently withholding at 10% will increase to 11.5%,
• employees currently withholding at 19% will increase to 21.9%,
• employees currently withholding at 23% will increase to 26.5%,
• employees currently withholding at 25% will increase to 26.8%,
• employees currently withholding at 31% will increase to 35.7%,
• employees currently withholding at 37% will increase to 42.6%

DHR will automatically make the adjustments for your employees which will be reflected on all payrolls dated May 1 and later. If your employees would like to change their withholding rate they must complete a new form A-4 titled, Employee’s Arizona Withholding Percentage Election.

If you have any questions regarding the Arizona withholding rate change, please contact our office at 888.870.5588.