We have been using Self Service W-4, tax withholding elections, until the 2020 forms went into effect. A new employee was hired in Arizona, and we are having trouble applying the withholding elections manually. We’ve tried all tax code options in PR13 that reference Arizona, as well as all options that reference replacing withholding percent, and the elected withholding rate is not being applied. All our employees in Arizona are having SIT withheld at the default rate of 2.7% regardless of allowances elected. How do we correctly apply the flat withholding rate elected via the Arizona withholding certificate?
