The below content should be reviewed in conjunction with the in-depth federal coverage of this topic provided above.

Authors: Paige A. Martin and Mary Grace McNear, Kutak Rock LLP

Summary

  • Wages paid to Arizona residents who work in the state are subject to withholding. An employee is an Arizona resident for income tax purposes if certain criteria are met. Arizona income tax must also be withheld from wages paid to certain Arizona nonresident employees for services performed in the state. See Withholding on Residents, Nonresidents and Expatriates.
  • Arizona employers determine withholding using Form A-4, Employee's Arizona Withholding Allowance Certificate. Employers may elect not to withhold taxes from employees' wages during December. See Employee's Withholding Allowance Certificate.
  • Arizona does not have special provisions regarding withholding from supplemental wages, such as bonuses. Supplemental wages are treated as regular wages. See Supplemental Wages.
  • Each year employers must provide copies of federal Form W-2, Wage and Tax Statement, to each employee from whom any amount of Arizona income tax was withheld. See Form W-2 Reporting Requirements.
  • Employers are required to keep records of wages paid and taxes withheld. See Recordkeeping Requirements.