Sunday, April 19, 2009

Changes to Arizona Withholding

Arizona Income Tax Withholding Amounts are calculated as a percentage of the Federal Income Tax Withholding Amount. Federal Government has recently reduced the amounts to be withheld for Federal Income Tax. In an apparent effort to avoid a corresponding decrease in Arizona Income Tax Withholding Amounts, Recent legislation has increased the percentages to be used for calculating the Arizona Income Tax Withholding Amount.

Follow this link for a table of the new changes.

Sage Master Builder users will have to manually adjust the Rate column on each Arizona employee’s Arizona State Income Tax calculation. Effective May 1, 2009, replace the previous percentage rate with the new percentage from the above table. Another manual update will have to be done on January 1, 2010 as indicated above.

About Master Builder Notes

Master Builder Notes is maintained by Walt and Gerry Mathieson, Sage Master Builder Certified Consultants. We have provided implementation, training and report writing services and general business advise to users of Sage Master Builder since 2000 and have over 30 years of real-world accounting and business management experience. While based in AZ, we use Internet tools and telecommunications to work with clients across the country. If you have Internet access, we are instantly available to assist you! To reach us, email to info@mathiesonconsulting.com or info@spcconsultants.biz.