Alabama Payroll Tax Compliance
The purpose of this article is to provide client users with information regarding payroll tax obligations associated with paying wages to EE's living or working in Alabama.
Companies who pay wages to employees in Alabama must register with the AL Department of Revenue for a Withholding Account Number and register with the AL Department of Labor for an Unemployment Compensation Account Number.
Withholding
- Registration
- ID Format: R123456789 or 1234567890 (10 digits)
- Register online using My Alabama Taxes to receive a Withholding Account Number within 3-5 days.
- Find an existing Withholding Account Number:
- On Form A-1 or A-3, Employer's Quarterly or Annual Return of Income Tax Filed
- By calling the AL Dept of Revenue at 334.242.1300
- Individual Withholding Forms
- Changes or Closure
- By calling the Withholding Tax Section at 334.242.1300
- Logging into My Alabama Taxes
- Reciprocity
- No Reciprocal Agreements
Unemployment
- Registration
- ID Format: 1234567890 (10 digits)
- Register online at the AL eGov site to receive UC account number on completion of the application
- Find an existing UC account number:
- On Form UC-CR-4 or UC-10R.
- Online at the AL eGov site
- By calling the AL Dept of Labor at 334.954.4730
- By emailing status@labor.alabama.gov
- Wage Base
- $8,000.00
- Changes or Closure
Local Taxes
- Alabama has jurisdictions which impose local income or occupational taxes:
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