Tax Changes in Arizona
As you may or may not know, effective May 1st, 2009, Arizona has implemented new state tax levels across the board for all employees that are required to pay taxes. These changes mark an increase in taxes for all taxpayers and no new A-4 form is required in order for the increase to take effect.

The new change simply represents about a 1-2% increase in the amount of state tax that is withheld from every employee’s pay. When filling out an A-4 form, if an employee had checked that they make less than $15,000 per year and wished to have 10% of the federal income tax withheld for state taxes, the new level on the A-4 form that corresponds to that amount is 11.5%. This adjustment should be automatic. Any employee who wishes to adjust their withholding based on this new tax table should be given the opportunity to fill out and submit a newly update A-4 form.

More Tax Increases on the Horizon
This tax increase is something that was in process for nearly six months, and is not a new development in Arizona’s economy. What is new, however are other tax increases considered for the 2009 ballot which may add special taxes for all citizens in order to help with the budget shortfall for 2009-2010.
All businesses are responsible for keeping abreast of these changes that occur either at the state or federal government level on a monthly if not weekly basis. That is why it is important to have a qualified human resources staff at your disposal. If you are interested in learning more about the tax increases, how they affect your employees, or where you can download the new forms, please give us a call at (480) 626-2109.

Sincerely,
Greg O’Keefe
Member

(480)626-2109 Office
(480)703-6005 Cell
(800)631-9913 Toll Free
(480)626-1451 Fax
gokeefe@hrwisellc.com
www.hrwisellc.com

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