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ALL EMPLOYEES - ARIZONA STATE WITHHOLDING HAS BEEN UPDATED TO THE DEFAULT RATE 2.0% Any existing additional dollar amounts an employee had chosen to be withheld will not be changed.
Changes to the 2023 tax rate structure mean changes to state withholdings from your paychecks. The new default withholding rate for AZ is 2 percent, so now is the time to review if this amount is appropriate for you. If you want to change this percentage, you can do so at any time during the year.
Tax deductions lower the amount of taxable income. Standard deductions for single filers are increasing from $12,950 in 2022 to $13,850 in 2023. Married couples filing jointly will go from $25,900 in 2022 to $27,700 in 2023, and married filing separately will go from $12,950 to $13,850.
Employees claiming to be exempt from Arizona income tax withholding, complete Arizona Form A-4 to elect to have an Arizona withholding percentage of zero. Complete Arizona Form A-4 and provide it to your employer. Keep a copy for your records. This exemption must be renewed annually.
Employers should withhold half (7.65%) of the 15.3% owed in FICA (Social Security and Medicare) taxes from an employee's gross pay. FICA taxes come in addition to regular federal income taxes, which change depending on your income level. There are seven tax brackets in 2022 and 2023: 12%.
The 2023 tax year?meaning the return you'll file in 2024?will have the same seven federal income tax brackets as the last few seasons: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your filing status and taxable income, including wages, will determine the bracket you're in.
Exam and Experience Requirements ? The ROC requires that a party has at least four years of experience in the trade to get a license. They must also pass the Business Management Exam (BME) and Trade Exam with at least a 70% score. A Surety Bond ? All contractors need a contractor's bond.
The employer should select 2.0% on behalf of the employee. The new default Arizona withholding rate is 2.0%.