Drake Accounting®: When I create a payroll check, the Arizona state withholding is not being calculated.
In order for Arizona payroll withholding to be calculated, a rate will need to be selected from the % Gross Taxable Wages drop-list at Employees > Employee Setup > State Tax tab.
If a rate is not selected (or if <None> is selected), the payroll check will calculate the State WH as zero.
See Related Links below for other required setup information.