Frequently Asked Questions About Arizona Withholding

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either by sending the completed Arizona Joint Tax

Application to the address on the form, or online at

www.AZTaxes.gov.

online at www.irs.gov.

file the Forms A1QRT,

A1R,

or A1WP.

withholding payments on a quarterly, monthly, semiweekly,

or onebanking

day basis, or you are a

monthly payor who incurred a onebanking

day

payment obligation during the quarter.

This form

is filed annually to reconcile your withholding liability

and withholding payments for each quarter of the year

with the total amount withheld as shown on the federal

Forms W2,

W2c,

W2G,

and 1099R.

It is also used

to transmit the state copies of these federal forms.

February 28 of the

year following the close of the calendar year for which

the payments were made. If February 28 is a Saturday,

Sunday or legal holiday, the return is due on the next

business day.

First quarter April

30? second

quarter July

31? third quarter October

31? fourth

quarter January

31.

ARS § 43401(

D) has been amended to allow some

employers additional time to file Form A1QRT.

Employers who have made every payment on time

during the preceding calendar quarter may have ten

additional days in which to file their A1QRT.

First quarter May

10? second quarter August

10? third

quarter November

10? fourth quarter February

10.

If any due date is a Saturday, Sunday or legal holiday,

the return is due on the next business day.

EXT and the required annual withholding

payment to the department on or before the due date of

the return.

EXT to the department on or before the due date

of the return.

required on these forms. The extension granted to file

the Form A1APR

or Form A1R

applies to the state

copies of the federal forms.

Send the payment with

the completed Form A1APR.

EMPLOYERS REQUIRED TO MAKE PAYMENTS ON A

the payment with the completed Form A1QRT.

to make your withholding payments

if you do not make your withholding payments via

electronic funds transfer (EFT) or at

basis if the average amount of Arizona income taxes

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withheld during the preceding four calendar quarters

does not exceed $1,500.

as its federal withholding deposits if the average

amount of Arizona income taxes withheld during the

preceding four calendar quarters exceeds $1,500.

each new quarter, to compute its average Arizona

withholding tax liability for the preceding four calendar

quarters. This calculation is performed to determine the

correct Arizona withholding payment schedule.

quarters of Arizona withholding liability historical data

must use the regular withholding payment schedule

computation. An employer that does not have four full

consecutive calendar quarters of Arizona withholding

liability historical data must use the alternate

withholding payment schedule computation. Refer to

the “Arizona Withholding Liability/Payment

Schedule” section of the Form A1QRT

instructions

for further information.

instructions for further information.

indicate the reason for the cancellation on page two of

the form.

The

department will apply the credit to any existing

liabilities. Do not use a credit until a credit notice has

been received. A refund will not be issued unless a

written request detailing the justification is submitted

to the department. The top portion of the credit notice,

or copy, should be attached to the written request. No

refund will be issued once the credit is applied to a

liability.

follow

the instructions for line 10 of the form.

federal income tax withheld from the payment of

compensation for services performed in Arizona.

Therefore, the determination by the Internal Revenue

Service regarding a worker’s employment status

(employee or independent contractor) controls the

determination for Arizona withholding tax purposes.

not complete the form, the employer must withhold at

the statutory minimum rate (10% or 19%) depending

on the amount of the employee’s annual compensation.

Refer to the Employer’s Instructions for the Form A4

for further information on the employer’s

responsibilities.

Arizona withholding is a percent of the amount of

federal income tax withheld from the payment of

compensation to the employee for services performed

in Arizona. Arizona does not have withholding

allowances. If there is no federal income tax withheld,

you cannot withhold Arizona income tax.

different withholding percentage option. Arizona

withholding is a percent of the amount of federal

income tax withheld from the compensation payment.

Therefore, the employee cannot choose to have an

additional dollar amount withheld.

to which it will apply. It applies to all employees.

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performs services outside of Arizona is voluntary. The

employee and employer must complete Form A4V,

Form A4

and the Form WEC for further information.

encourages, but does not require, the employer to use

magnetic media filing for 250 or more federal forms.

reporting federal Forms W2,

W2c,

W2G,

and 1099R.

Refer to Arizona Withholding Tax Ruling WTR 991

for further information. The employer must file the

state copies of the federal Forms W2,

W2c,

W2G,

and 1099R

as part of the reconciliation required in

Arizona Forms A1APR

and A1R.

request voluntary Arizona income tax withholding by

completing the Form A4P,

The recipient may change the amount of tax withheld

or terminate withholding by the same methods. Refer

to Arizona Withholding Tax Ruling WTR 992.

and

1099R)

may be reported in the same withholding

return.

Information is available on the DES website at

available on the commission’s Internet home page at