Looking for a Arizona Tax Forms And Templates? Download it for free!

Arizona Form A-4 - Employer'S Instructions For The Employee'S Arizona Withholding Election Page 2

Arizona Form A-4

a calendar year. In these examples, the employer has met the

Example 3:

qualifying criteria for this exemption and is not required to

Individual D owns 60 percent of Corporation K and 51 percent

withhold Arizona income taxes from compensation paid to the

of Corporation S. Individual N owns 40 percent of Corporation

employee for services performed in Arizona.

K and 49 percent of Corporation S. Corporation S has property,

Example 1:

payroll and sales in Arizona. Corporation K, based in

Corporation A is the U.S. domestic parent of Corporation B, a

California, does not have property, payroll and sales in

wholly owned foreign subsidiary corporation. Corporation A

Arizona. Individual T, an Arizona nonresident, is an employee

has property, payroll and sales in Arizona. Corporation B

of Corporation K. Individual T performs services for

operates in China and does not have property, payroll and sales

Corporation K in Arizona for 35 days during calendar year

in Arizona. Individual R, an Arizona nonresident, is an

2016.

employee of Corporation B. Individual R performs services for

EMPLOYMENT FOR WHICH WITHHOLDING MAY

Corporation B in Arizona for 45 days during calendar year

BE ELECTED

2016.

• A nonresident Arizona employee of a multi-state business

Example 2:

in this state for less than 60 days may elect to have Arizona

Corporation F, based in California, is the common parent of

withholding amounts subtracted from his or her paycheck

Corporation W. Corporation F does not have property, payroll

and the employer must withhold tax based on the

and sales in Arizona. Corporation W does have property,

employee’s election to do so.

• A multi-state business may elect to withhold tax from the

payroll and sales in Arizona. Individual L, an Arizona

nonresident, is an employee of Corporation F. Individual L

nonresident employee before the 60 day limitation has

performs services for Corporation F in Arizona for 55 days

elapsed.

during calendar year 2016.

Arizona Form A-4 - Employer'S Instructions For The Employee'S Arizona Withholding Election Page 2