California & Arizona Income Tax Changes

The 4nannytaxes.com online tax calculators have been updated to reflect the recent increases in the state income tax rates in California and Arizona.

The Arizona Senate Bill 1185 requires that employers begin withholding at the new rates no later than the first payroll issued in May 2009. Be forewarned - these rates will change again January 1 2010.

Important: Arizona Tax Amnesty Program will run from May 1 - June 1, 2009. This is an opportunity for those who live, work, or do business in Arizona, including the employment of nannies, housekeepers, and other domestic workers, to pay back or underreported taxes to the state of Arizona with a reduced rate of interest and no penalties. More information is available at http://www.azdor.gov/taxamnesty.

California advises employers to immediately begin using the new tax withholding schedules to help minimize any potential tax liability their employees may face when they file their state personal income tax returns next year. Employees will find answers to their questions about the new personal income tax rates at the state Franchise Tax Board Web site (www.ftb.ca.gov)