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State Payroll Information

Alabama Payroll

Did you know that in Alabama, employees need to file the state A-4 form rather than the federal W-2? That employers can receive a tax credit for providing basic education to their employees?

Alabama Income Tax Withholding

Because Alabama and federal law vary in the number of exemptions permitted, employees must use the state form A-4 and may not use the federal W-4 as a substitute.

Full-time students who anticipate earning less than $1,800 per year and who expect to owe no Alabama income tax may file Form A-4E, Employee's Withholding Exemption Certificate. This certificate expires on Dec. 31 of each year.

        Get the Alabama A-4 Form (PDF)

Alabama Benefits

Employer Education Credit: A tax credit is statutorily available to employers who provide approved basic education programs to Alabama resident employees. The credit is 20% of the actual costs limited to the employer's income tax liability.

Alabama Voting Rights:

Employer Right To
Schedule Voting Hours
Pay Deduction For
Voting Time Leave
Yes Not Specified

Employers must grant employees no more than one hour of leave to vote, unless employees begin work at least two hours after the polls open or end work at least one hour before they close.

Alabama Compensation

There is no state-mandated minimum wage law in Alabama. Alabama follows the federal minimum wage standard of $5.15 per hour. Alabama does not mandate overtime pay.

Alabama Payroll

Employers covered by Alabama's wage payment law must pay wages at least twice in a calendar month and not more than 15 days following the close of the pay period.

Alabama Unemployment:

Taxable Wage Base
($000s)
New Employer Rate
(% Taxable Wages)
Employee Tax Rate
(% Taxable Wages)
Period Effective
8,000 2.7 None Calendar Year 2007

Helpful Links for Alabama Payroll

Alabama Department of Revenue
Income Tax Division Withholding Tax
Section 50 N. Ripley
Montgomery, Alabama 36132
(334) 242-8467

Alabama Department of Industrial Relations
649 Monroe Street
Montgomery, Alabama 36131
(334) 242-8467

Alabama Withholding Tax Forms
Access withholding tax forms from the Alabama Department of Revenue, including the A-4, A-1, A-3 and A-6.

Withholding Tax Tables and Instructions
for Alabama Employers

This helpful booklet contains tax tables and general instructions for computing, withholding, and remitting Alabama withholding tax.


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