Updated July 2010
Arizona allows employees to choose the percentage of their Gross wages to be taxed for state purposes in lieu of using traditional tax tables. Here are the steps to set up an employee under this system:
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Open Employee Information.
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Locate an existing employee to change or add a new one.
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Click the Setup tab.
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Choose Arizona as the State.
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Under Withholding Allowances you have a State Election drop List. Select the percentage that they have elected to withhold (State Form A-4).
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Click Save.
Note: this requires a program update that is dated June 29, 2010 or later.