News
New Arizona Form A-4
Arizona Form A-4 which is used to calculate Arizona income tax withholding has been updated to reflect Arizona's 2023 2.5% individual income tax rate.
Arizona's Employees Have New Tax Withholding Options.
Employee Tax Withholding Form A-4 Updated to Reflect Lower Rates.
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Arizona Minimum Wage Information
Arizona's Minimum Wage Increase: Effective January 1, 2023.
Arizona Minimum Wage Increase
The Arizona minimum wage increases to $12.80 per hour for regular employees and $9.80 per hour for tipped employees effective January 1, 2022.
IRS Announces 401(k) Limit Increases for 2022
The Internal Revenue Service announced today that the amount individuals can contribute to their 401(k) plans in 2022 has increased to $20,500, up from $19,500 for 2021 and 2020.
Additional retirement plan limitations can be found through following link:
IRS announces 401(k) limit increases to $20,500 | Internal Revenue Service
UPDATE - Employee Retention Credit
The employee retention credit will terminate early.
The infrastructure legislation makes wages paid after September 30, 2021 ineligible for the employee retention credit. An exception are wages paid by an eligible recovery startup business which is a business which started on or after February 15, 2020 and meets other eligibility requirements.
Annual Gift Limit Increase for 2022
The annual exclusion for gifts increases to $16,000 for calendar year 2022, up from $15,000 for calendar year 2021.
Changes to Employee Retention Credit (ERC) for First and Second Quarters of 2021
Modifications to the gross receipts test
For purposes of the first and second quarter 2021 ERC, an employer is eligible if they have a 20% reduction in gross revenue during the current or preceding quarter. For first quarter 2021, you would compare first quarter 2021 to first quarter 2019 to determine if you have a 20% reduction in gross revenue. If you do not have a 20% reduction, you would compare fourth quarter 2020 gross revenue to fourth quarter 2019 gross revenue to see if there is a 20% reduction.
The other way to qualify for the ERC is if you have been completely or significantly shutdown due to government order. For this category, you would qualify for ERC during the period of government shutdown which would not necessarily be a full quarter.
If you do not have a 20% reduction in gross revenue during the current or preceding quarter and you were not subject to a government shutdown, you do not qualify for the credit.
There are special rules if you are a new business.
