Alabama Payroll Services

What is the state minimum wage? 

• $7.25/hour

What do I need to know about state withholding tax?

• Income earned within Alabama is subject to withholding tax for both residents and non-residents
• Income earned by Alabama residents outside of Alabama is subject to that jurisdiction’s withholding tax (if applicable); if no withholding tax exists in that jurisdiction the income is subject to AL withholding
• New employers are required to register for a withholding account. Click here to register.

What forms do employees need to set up state withholding?

• A-4 – Employee’s withholding tax exemption certificate 
• A4-MS – Nonresident Military Spouse Withholding Exemption Certificate

What do I need to know about unemployment tax?

• 2020 Taxable Wage Base – 8,000
• 2020 New Employer UI Rate – 2.7%
• With few exceptions, new employers are required to register for an unemployment tax account. Click here to register online.
• To register by mail, complete form and send to: 

  Department of Labor
  Unemployment Compensation Division
  649 Monroe Street
  Montgomery, Alabama 36131

How do I report new hires to the state?

• Report new hires online
• Alabama Department of Labor
  New-Hire Unit
  649 Monroe St., Room 3205
  Montgomery, AL 36131-0378
• Fax: (334) 206-6020
• Phone: (334) 206-6020
• Email: newhire@labor.alabama.gov

How do I submit Child Support payments?

• Pay online
• Phone: (800) 284-4347
• Email: csed@dhr.alabama.gov
• Child Support Payment Information

Additional Resources:

Get A Quote For Alabama Payroll Services