How Do I Update My Arizona Tax Tables?

Where do I find the tax tables?

For information on AZ tax withholdings, refer to the current form A-4  “Employer's Instructions for the Employee's Arizona Withholding Percentage Election” from the AZ Department of Revenue.

Which tables do I use?

The amount of AZ income tax to be withheld is a percentage of gross taxable wages. The percentage rate is elected by the employee on form A-4 "Employee's Arizona Withholding Percentage Election". Figure 1 shows a sample of the rates from form A-4 ("Employer's Instructions..."). 

Note that the figures shown in this document are for demonstration purposes only, and may not be current. Please consult the current publication for the most up-to-date information. Though the figures change periodically, the method of calculation should remain the same. If the calculation method has changed for this state please notify the webmaster.

Figure 1 – AZ Withholding Percentages (effective July 1, 2010)

How to setup/update the tables in PowerChurch Plus

To setup/update PowerChurch Plus for AZ state tax withholdings shown in Figure 1 above, select the Accounting menu, Payroll, Setup, then Maintain Tax Tables. A separate table will need to be created for each percentage rate.

Click Add to enter a new table, or use the Find/Locate buttons to select an existing AZ tax table to update. When adding a new table, you will be prompted for the type of tax table you’re adding. Select State: Arizona (post 7/2010). For each table, enter the following information:

• Description: Enter a unique name to identify the tax table (for example, “AZ State Tax – 3.6%”).
• Tax type: The type of tax in which this table applies. In this instance, select State Tax.
• Percentage: Enter the percentage rate of gross taxable wages to be withheld.
• Round tax to nearest whole dollar: If required, check this box to round the calculated tax amount to the nearest whole dollar.

When you are done, the screen should look like this:

Figure 2 – AZ State Tax Table - 3.6% (July 1, 2010)

Follow the instructions just described for any other needed percentage rates.