| The Alabama State Agency that oversees the | | | | Number (EIN) This information must be |
| collection and reporting of State income | | | | reported within 7 days of the hiring or |
| taxes deducted from payroll checks is: | | | | rehiring. The information can be sent as a W4 |
| Department of Revenue Income Tax Division | | | | or equivalent by mail, fax or electronically. |
| Withholding Tax Section 50 North Ripley St. | | | | There is a $25.00 penalty for a late report |
| P.O. Box 327480 Montgomery, Alabama | | | | in Alabama. The Alabama new hire-reporting |
| 36132-7480 334-242-1300 Alabama requires | | | | agency can be reached at 334-353-8491 or on |
| that you use Alabama form "A-4, Employee's | | | | the web at Alabama does allow compulsory |
| Withholding Exemption Certificate" instead of | | | | direct deposit but the employee's choice of |
| a Federal W-4 Form for Alabama State Income | | | | financial institution must meet federal |
| Tax Withholding. Not all states allow salary | | | | Regulation E regarding choice of financial |
| reductions made under Section 125 cafeteria | | | | institutions. Alabama has no State Wage and |
| plans or 401(k) to be treated in the same | | | | Hour Law provisions concerning pay stub |
| manner as the IRS code allows. In Alabama | | | | information. In Alabama there are no |
| cafeteria plans: are not taxable for income | | | | statutory requirements concerning pay |
| tax calculation; are taxable for unemployment | | | | frequency or the lag between when the lag |
| insurance purposes. 401(k) plan deferrals | | | | time between when the services are performed |
| are: not taxable for income taxes; are not | | | | and when the employee must be paid. Nor for |
| taxable for unemployment purposes. In Alabama | | | | that matter does Alabama have legal |
| supplemental wages are taxed at a 5% flat | | | | provisions concerning when a terminated |
| rate. You may file your Alabama State W-2s by | | | | employee, voluntary or involuntary, must be |
| magnetic media if you choose to. The Alabama | | | | paid. Deceased employee's wages must be paid |
| State Unemployment Insurance Agency is: The | | | | when normally due to the surviving spouse or |
| Department of Industrial Relations 649 Monroe | | | | custodian of minor children. Escheat laws in |
| Street Montgomery, Alabama 36131 334-242-8990 | | | | Alabama require that unclaimed wages be paid |
| The State of Alabama taxable wage base for | | | | over to the state after one year. There is |
| unemployment purposes is wages up to | | | | no provision in Alabama law concerning record |
| $8000.00. Alabama requires Magnetic media | | | | retention of abandoned wage records. There is |
| reporting of quarterly wage reporting if the | | | | no provision in Alabama law concerning tip |
| employer has at least 250 employees that they | | | | credits against State minimum wage. In |
| are reporting that quarter. Unemployment | | | | Alabama the payroll laws covering mandatory |
| records must be retained in Alabama for a | | | | rest or meal breaks are only that: minors |
| minimum period of five years. This | | | | under 16 must have 30 minutes rest after five |
| information generally includes: name; social | | | | hours of work. There is no provision in |
| security number; dates of hire, rehire and | | | | Alabama law concerning record retention of |
| termination; wages by period; payroll pay | | | | wage and hour records therefor it is probably |
| periods and pay dates; date and circumstances | | | | wise to follow FLSA guidelines. The Alabama |
| of termination. The Alabama State Agency | | | | agency charged with enforcing Child Support |
| charged with enforcing the state wage and | | | | Orders and laws is: Alabama Department of |
| hour laws is: The Department of Industrial | | | | Human Resources Child Support Enforcement |
| Relations 649 Monroe Street Montgomery, | | | | Division 50 Ripley St. Montgomery, AL |
| Alabama 36131 334-242-8990 There is no | | | | 36130-1801 334-242-9300 Alabama has the |
| provision for minimum wage in the State of | | | | following provisions for child support |
| Alabama. There is also no general provision | | | | deductions: |
| in Alabama State Law covering paying overtime | | | | |
| in a non-FLSA covered employer. Alabama | | | | - When to start Withholding? Immediately |
| State new hire reporting requirements are | | | | after receipt of order. |
| that every employer must report every new | | | | |
| hire, rehire and recall. The employer must | | | | - When to send Payment? Within 7 days of |
| report the federally required elements of: | | | | Payday. |
| | | | |
| - Employee's name | | | | - When to send Termination Notice? |
| | | | "Promptly" |
| - Employee's address | | | | |
| | | | - Maximum Administrative Fee? $2 per |
| - Employee's social security number | | | | month. |
| | | | |
| - Employer's name | | | | - Withholding Limits? Federal Rules under |
| | | | CCPA. Please note that this article is not |
| - Employers address | | | | updated for changes that can and will happen |
| | | | from time to time. |
| - Employer's Federal Employer Identification | | | | |