Donate by Payroll Deduction
Process
1) Fill out the Payroll Withholding Form and send to AZ4Education
2) We will send the Arizona Form A-1C form that you can sign and give to your employer
3) If the employer chooses to participate, then payments will be made to AZ4Education on your behalf every quarter.
Employees
• Payroll withholding does not reduce your overall state tax liability. This just redirects your taxes to AZ4Education, rather than making a contribution and receiving a tax credit.
• Be sure to consult with a tax advisor regarding your expected state tax liability. If you withhold and donate more than your state tax liability, the excess will be rolled over for the next tax year, for up to five years.
• You are responsible for requesting the payroll withholding change from your employer. This is completely voluntary on the employee’s part.
• Main reason for doing a payroll withholding is that you can make your donation without having to provide the money up front or all of it at the same time.
Employers
• As an employer, this is voluntary, but it benefits your employees at minimal cost to you.
• Employee communication regarding this withholding reduction is confidential information.
• Employers will be required to issue quarterly payments to AZ4Education on the employee’s behalf using Arizona Form A1-QTC “Quarterly Payment of Reduced Withholding for Tax Credits Form”. In addition, you must provide Arizona Form A1-C “Arizona Charitable Withholding Statement” to each participating employee and the AZ Department of Revenue indicating the total amount contributed through withholding reductions for the tax year, or upon that employee leaving the company. We will also send a receipt to each employee by January 31 of the following year showing their total contributions.
