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Alabama Payroll Information

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Paying Employees in Alabama

  • Alabama 2022 Minimum Wage:

    • $7.25/hour

    Alabama Overtime Rules: 1.5 x’s the regular rate of pay for non-exempt employees for all hours worked over 40 in a workweek

    Alabama Paystub Requirements:

    • No state requirement

    How often do you have to pay employees in Alabama?

    • No state requirement

    When is an employee’s final check due in Alabama?

    • No state law for final payment to an employee

    Alabama Withholding Tax 

    Alabama Withholding Tax Registration

    • Register online using Alabama’s Department of Revenue website

    Wages subject to Alabama withholding

    • All wages earned in Alabama are subject to Alabama withholding

    Alabama Employee’s Withholding Exemption Certificate

    Reciprocity

    • None

    Alabama Withholding Tax Due Dates

    • If $1,000 or more withheld in the first or second month of the quarter, payments are due monthly by the 15th of the month following the month in which the tax was withheld.  
    • If not, the payment is due quarterly by the last day of the month following the end of the quarter

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    Alabama Unemployment Tax

    Alabama Unemployment Tax Registration

    • Complete form SR2

    Alabama Unemployment Tax Employer Liabilities

    • New employer rate: 2.7%
    • 2022 Wage Base: $8,000

    Alabama Unemployment Tax Due Dates

    • Return and payment are due quarterly on the last day of the month following the end of the reporting period

    Alabama New Hire Reporting

    • New hires must be reported within seven days of hire/rehire (or twice per month if reporting electronically)
    • $25 fine per violation
    • Must report employee’s name, address, SSN, first day of work, newly or rehired, employer’s FEIN, name and address
    • New Hire Unit
      Alabama Department of Labor
      649 Monroe Street, Room 2683
      Montgomery, AL 36131-0378
    • Phone: 334-353-8491
    • Fax: 334-242-8956
    • Email: newhire@labor.alabama.gov
    • Report Alabama new hires online

    Alabama Child Support

    • Alabama Child Support Center
      PO Box 244015
      Montgomery, AL 36124-4015
    • Phone: 334-242-9300
    • Fax: 334-242-0606
    • Email: childsupport@alacourt.gov
    • Remit Alabama child support payments online

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