Arizona state withholding A-4 on PR13

What version of Lawson are you on? The procedure is different depending if your on 8.1 or 9.0

9.0

We are on 9.0.1.3 so I'm not positive that 9.0 works the same. Here are are procedures for AZ.

In 9.0.1, PR14 contains a BSI Formula field that needs to be populated. In 8.1 the same BSI formula was on a tab at the bottom of PR13.

We populate this field according to the following conversion chart

If Arizona A-4 form:

Indicates Enter
10.7% 7

20.3% 6

24.5% 5

26.7% 4

33.1% 3

39.5% 2

If no form is received the field defaults to blank which is the smallest applicable percentage available.

Hope this helps.

Thanks it helps but I was wondering what to select to set up on PR 13 on the addl tax tab>> under tax code. Is it AZ Res Vol W/H; No AZ wages?

We have numerous EE's in AZ. I checked a handful and none of them have anything popluated in the Tax Code Field. The option of 8 looks like it would only be used if you live in AZ but work in another state (and choose to have AZ taxes withheld on those earnings)

So in our instance, the Tax code field is not needed for AZ employees. We have 2000 plus EE's in 40+ states and don't use the Tax Code field for any of our EE's.

Why do you think you need to use it?

We looked it up on knowledge base and it mentioned PR13.1 set up on the state deduction code and using formulas. I'm not sure if it is because the version we are using is Portal 9.0.0.5.628 and it differs from yours? We tested with payroll and that was the only way they could see a percentage deduction for Arizona state withholding. I'm not sure we are doing it correctly.

Prior to 9.0.1, we were using the PR13 and formulas. It sounds like that is what you need to do.

Hi Everyone,

This is Kathy from BSI. I believe Lawson posted knowledgebase article 5306762 in January for this particular issue. The article states the following:

Article ID:5306762

Description:

Why was the Formula Number field added to Employee Deduction (PR14.1)?

Resolution:

An increasing number of taxing jurisdictions need the ability to have a formula
number tied to the Lawson tax deduction code. As most employer-paid tax
deductions are not visible on Employee US Taxes (PR13.1), the Formula Number
field has been added to Employee Deduction (PR14.1). PT177923 (Unix)/PT178503
(System i) adds the Formula Number field to PR14.1 and changes the Formula
Number field on PR13.1 and PR13.5 to display only.

Additional Information:

Keywords:

Formula Number PR13.1 PR14 PR13.5

Hopefully this will prove helpful to you. If there's anything us at BSI can do, please do not hesitate to contact us.

Thanks,
BSI Support - Kathy

Thank you, I am having our IS team check with Lawson on this because payroll and I (in HRIS) have tested some PR13 setups and have been unsuccessful in setting up the NEW AZ state withholding tax, which has changed and effective July 1st is a percentage of gross taxable wages, no longer a percentage of federal withholding which is what LAWSON does now. Please let me know if you are aware of how to set up the new AZ withholding. Below is the link on the new AZ law which I am not sure how to set up on PR13 or PR14. Thanks for your help.

http://www.azdor.gov/Busi.../WithholdingTax.aspx