Arizona Payroll Instructions

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Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2017 Payroll Tax Table Updates

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Arizona greatly simplified its withholding tax formulas in mid-2010. Instead of calculating them as a percentage of federal withholding, it now uses a simple percentage deduction of gross wages.

Employees can choose among several different percentages on their A-4 Form. One additional withholding rate (.8%) was added in 2011. Rates are unchanged in 2017.

There have been 5 major changes of the calculation methods in the past 26 years, plus small annual table changes prior to 2010, when it was based on federal rates.

HINT-- We provides free updates for Arizona and federal payroll tax tables in our payroll software. Click here to download federal and Arizona tax withholding tables for the Goldenseal payroll software program.

Arizona State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record.
  3. Click the Payroll Setup button.
  4. Choose the employee's marital status in the Marital Status field.
  5. Enter the appropriate Tax Package with the employee's withholding rate into the Tax Package field.
  6. Enter the number of federal dependents into the Federal Exemptions field.
  7. Enter the number of Arizona dependents into the State Exemptions field.
  8. Click OK.

NOTE-- Goldenseal uses a 'step' table to calculate each of the Arizona withholding rates. It uses the same step ranges as the federal tax tables, but the percentage and base amounts are calculated using a percentage of the federal tax rate.


Arizona State Unemployment Tax Instructions

In 2017, the Arizona state unemployment insurance tax applies to the first $7,000 of each employees wages. The starting rate for new employers is 2.0%, with a possible additional 2% surcharge when fund balances are low. After two years, the rates vary, depending on your history, and the current fund balance.

To enter your Arizona state SUTA tax rate into the Goldenseal payroll accounting software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items. Locate Arizona SUTA tax in the list, and double-click on it. HINT: If you don't see Arizona SUTA in the list, you'll need to import your state's payroll info first.
  3. Enter the percentage rate that you pay into the percentage field to the right of Calculation method.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Arizona Job Training Tax

Arizona has a .1% job training tax that is collected along with the regular SUTA tax. This tax only applies to some employers, depending on their reserve ratio and SUTA tax rate.

When you first import tax tables for Arizona, Goldenseal does not include this tax. If you need to pay the job training tax, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Packages from the submenu.
  2. Click on one of the Arizona tax packages, then click the Edit button.
  3. Turn on the checkbox next to Job Training Tax.
  4. Click OK.
  5. Repeat steps 2 to 4 for each of the Arizona tax packages.

Arizona Marital Status

Use the following to determine the value for the Marital Status popup menu in each Employee account:

  • Single- single employee
  • Married- married employee
  • Dual Income- not used
  • Head of House- not used
  • Other- not used

Arizona Tax Contacts

Withholding Tax Website

Payroll Tax Office-- 602 255-3381
Withholding Info-- 602 255-2060
Forms by Fax-- 602 542-3756
SUTA-- 602 255-4757

Arizona Department of Revenue
Box 29002 Phoenix AZ 85038-9002


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