Is Alabama a state where withholding is required?

<p>The money that an employer is obligated to withhold from each employee's earnings in order to pay the employee's state income tax is known as state withholding tax. The state of Alabama requires that income tax be withheld from wages paid to withheld employees.</p>

What is Alabama's withholding tax?

<p>Local taxes may be deducted from your paycheck depending on where you live in the state. The amount of tax withheld by your employer is determined by the information you supply on your W-4 tax form.</p>

Alabama Payroll Services

Alabama Payroll Tax And Employment Laws

Get Your Alabama State Tax ID Number

To Obtain a State Tax ID, please Click Here.

To obtain a state unemployment tax ID, Click Here.

In Alabama, instead of filing the federal W-2, employees must file the state A-4 form? That offering basic education to employees might earn a firm a tax credit?

Alabama Wage and Labor Laws

In Alabama, there is no state-mandated minimum wage. Alabama’s minimum wage is $7.25 per hour, which is the same as the federal minimum wage. Overtime pay is not required in Alabama.

Alabama Payroll for Employers

Employers subject to Alabama’s wage payment law must pay wages at least twice a month and no later than 15 days after the pay period ends.

Alabama Unemployment:

Taxable Wage Base ($000s): 8,000

New Employer Rate (% Taxable Wages) 2.7

Employee Tax Rate (% Taxable Wages) None

Alabama Income Tax Withholding

Because the amount of exemptions allowed under Alabama and federal law differs, employees must utilize the state form A-4 rather than the federal W-4.

Full-time students who anticipate earning less than $1,800 per year and who expect to owe no Alabama income tax may file Form A-4E, Employee’s Withholding Exemption Certificate. Each year on December 31st, this certificate will expire.

Get the Alabama A-4 Form (PDF)

Alabama Benefits

Alabama Voting Rights:

Employer Right to Schedule Voting Hours Yes

Pay Deduction for Voting Time Leave Prohibited

How do I report new hires to the state?

Report new hires online
Alabama Department of Labor
New-Hire Unit
649 Monroe St., Room 3205
Montgomery, AL 36131-0378
Fax: (334) 206-6020
Phone: (334) 206-6020
Email: [email protected]

How do I submit Child Support payments?

Alabama State-Specific Rules

Alabama Department of Revenue >>

Withholding Tax Tables & Instructions for Alabama Employers >>

Alabama SUI Rate >>

Alabama Department of Industrial Relations >>

Alabama Withholding Tax Forms >>

AccuServe Payroll disavows any responsibility or warranty for the information on these state payroll pages. The material provided is for informational purposes only and does not constitute tax or legal advice. Verify this information with professional tax, legal, or other experts to see if and how it applies to your specific circumstances.

This website provides articles that are intended to be informative and educational. AccuServe Payroll is not responsible for the accuracy of any of the information provided on these pages. AccuServe Payroll does not necessarily agree with or support any of the views stated in the materials. The information contained in these documents should not be construed as legal or accounting advice, nor should it be used to replace legal, accounting, or other professional advice where the facts and circumstances justify it. If you need legal or accounting advice or other professional assistance, to address your specific facts, circumstances, and business needs, you should always consult a licensed attorney, accountant, or other tax specialists.