Alabama Payroll Tax and Labor Laws

Get Your Alabama State Tax ID Number

Click Here to Obtain State Tax ID
Click Here to Obtain State Unemployment Tax ID

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 Wage and Labor Laws

There is no state-mandated minimum wage law in Alabama. Alabama follows the federal minimum wage standard of $7.25 per hour. Alabama does not mandate overtime pay.

Alabama Payroll for Employers

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):                        8,000

---

New Employer Rate (% Taxable Wages)    2.7

---

Employee Tax Rate (% Taxable Wages)     None

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

Alabama Voting Rights:

Employer Right to Schedule Voting Hours         Yes

---

Pay Deduction for Voting Time Leave                 Prohibited

Alabama State-Specific Rules

SurePayroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.

This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.

Information accurate as of December 2020