Arizona’s Payroll Withholdings Program allows taxpayers to donate to AZTO throughout the year via their employee withholdings.
For the Employee
The advantage of enrolling in this program is that you can give to AZTO throughout the year via your Payroll Withholdings. As a result, your contribution does not come out of pocket in one lump sum.
Check with your Employer. Does your Employer participate in Payroll Withholdings for Arizona’s Tax Credit Programs?
Complete AZTO Withholdings Enrollment Form. This form must be submitted to AZTO annually for each tax year of participation.
AZTO will review your enrollment request. Email confirmation will be provided to you with the A-4C Request for Reduced Withholdings to Designate for Tax Credit.
Participant will review and sign Form A-4C. Then you will give this form to your employer and request to participate in Payroll Withholdings for your AZTO tax credit donation.
Employer participation is optional. If your employer agrees to participate, the employer will withhold your AZTO contribution throughout the year and mail your donation to AZTO on a quarterly basis on your behalf.
Donations will be receipted with the postmark of when the donation is mailed by the employer. AZTO will receipt the various contributions annually. You will use this receipt to claim the Private School Tuition Tax Credit on your Arizona Income Tax Return.
For the Employer
AZTO’s Payroll Withholdings Program is a valuable benefit to your employees.
Employer participation is optional. See Employees Requesting Reduced Withholding to Designated for Tax Credit on the Arizona Department of Revenue’s site middle of the page. If using an outside payroll service, it is recommended that you consult with them to confirm this service capability.
Employee submits the completed Form A-4C to your payroll representative.
Employer reduces the employee’s withholdings to account for the requested AZTO contribution. It may be helpful if the employee and employer’s payroll representative together review the requested donation amount, number of remaining pay periods, withholding percentage and total state withholdings to ensure proper reduction of withheld contributions throughout the year.
Employee communication regarding withholding reduction is considered confidential information.
Employer mails the employee’s payroll contribution along with Form A1-QTC to AZTO on a quarterly basis. Form A1-QTC may be substituted with a custom generated report with the same content.
For receipting purposes, AZTO must use the postmark date of mailed withholding check as the date of the employee’s donation.
ARS 43-401 governs Payroll Withholdings. See section G for specifics regarding reducing payroll withholdings for an AZTO tax credit donation.