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