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