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Arizona Form A-4 which is used to calculate Arizona income tax withholding has been updated to reflect Arizona's 2023 2.5% individual income tax rate.

Arizona Form A-4 which is used to calculate Arizona income tax withholding has been updated to reflect Arizona's 2023 2.5% individual income tax rate.  Every Arizona employer is required to make this form available to Arizona employees by January 31, 2023.  The new Form A-4 has seven withholding election rate boxes while retaining both the zero withholding rate option and the line for additional Arizona withholding.  If an employee fails to fill out the new Form A-4, the default rate will be 2.0%.

If you do not update the Arizona Withholding percentage in Quickbooks for each employee, Quickbooks will continue with the 2022 withholding tax rate.