The Arizona Department of Revenue (AZDOR) announced on November 1, 2022, Arizona’s Employees Have New Tax Withholding Options. An updated version of Arizona's Individual Income Withholding Form (Arizona Form A-4) reflecting the lower rates was also published. Since the Arizona tax rates are lower, the AZDOR is requiring all individuals to complete a new Form A-4 for 2023. Employees have two options to complete the new Arizona Form A-4 that is required by law for wages paid after January 1, 2023. State employees on the HRIS payroll system can submit an Arizona Form A-4 on paper to their agency payroll office or electronically via the Y.E.S. website. Current employees who fail to make the required A-4 election will be set at the new default rate of 2.0% which may not be the appropriate option for their specific situation.