Arizona State Tax

Sage 100 Contractor requires a marital status on all state tax calculations in 5-2-1 Employees Calculations tab, even though Sage 100 Contractor does not use marital status when calculating Arizona state withholding taxes. Use the status that applies to each employee below. The marital status has no effect on the amount of state withholding.

Arizona marital statuses

Marital Status	Description
1-Single	Single Person
2-Married	Married
3-Head of Household	Head of Household
4-Married/Separate	Married Filing Separately
5-Married/Jointly	Married Joint

Payroll Calculation

Setting up payroll calculations in Arizona requires some special provisions.

To set up payroll calculations on an employee for Arizona State Tax:

1. Open 5-3-1 Payroll Calculations.
2. In the Tax Type list, click State Income Tax.
3. In the State box, type AZ.
4. After setting up the payroll calculation and updating it to the employee records, enter each employee’s rate in the employee records.

To set up employee rates for Arizona State Tax:

1. Open 5-2-1 Employees.
2. Using the data control, select the employee.
3. Click the Calculations tab.
4. In the Marital cell of the Arizona Income Tax row, enter the corresponding marital status number.

5. In the Rate cell of the Arizona State Tax row, enter the employee’s rate declared on Form A-4.

   If the employee has not submitted an updated Form A-4, enter the state’s default rate.

6. On the menu bar click File menu, then select Save.