Payroll Alabama, Unique Aspects Of Alabama Payroll Law And Practice
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The Alabama State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:
Department of Revenue
Income Tax Division
Withholding Tax Section
50 North Ripley St.
P.O. Box 327480
Montgomery, Alabama 36132-7480
334-242-1300
Alabama requires that you use Alabama form “A-4, Employee’s Withholding Exemption Certificate” instead of a Federal W-4 Form for Alabama State Income Tax Withholding.
Not all states permit salary reductions made under Section a hundred twenty five cafeteria plans or 401(k) to be handled in the same manner as the IRS code allows. In Alabama cafeteria plans: are not taxable for income tax calculation; are taxable for unemployment insurance purposes. 401(k) plan deferrals are: not taxable for income taxes; are not taxable for unemployment purposes.
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In Alabama supplemental wages are taxed at a 5% flat rate.
You could file your Alabama State W-2s by magnetic media if you choose to.
The Alabama State Unemployment Insurance Agency is:
The Department of Industrial Relations
649 Monroe Street
Montgomery, Alabama 36131
334-242-8990
The State of Alabama taxable wage base for unemployment purposes is wages up to $8000.
Alabama requires Magnetic media reporting of quarterly wage reporting if the employer has not less than 250 workers that they are reporting that quarter.
Unemployment data have to be retained in Alabama for a minimum period of 5 years. This data generally : name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.
The Alabama State Agency charged with enforcing the state wage and hour laws is:
The Department of Industrial Relations
649 Monroe Street
Montgomery, Alabama 36131
334-242-8990
There is no provision for minimum wage in the State of Alabama.
There is also no common provision in Alabama State Regulation covering paying extra time in a non-FLSA covered employer.
Alabama State new hire reporting necessities are that every employer must report each new hire, rehire and recall. The employer must report the federally required elements of:
Employee’s name
Employee’s address
Employee’s social security number
Employer’s name
Employers address
Employer’s Federal Employer Identification Number (EIN)
This data have to be reported within 7 days of the hiring or rehiring.
The data can be sent as a W4 or equivalent by mail, fax or electronically.
There’s a $25.00 penalty for a late report in Alabama.
Alabama does permit obligatory direct deposit but the employee’s choice of financial establishment must meet federal Regulation E relating to choice of financial institutions.
Alabama has no State Wage and Hour Law provisions concerning pay stub information.
In Alabama there aren’t any 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 provisions concerning when a terminated employee, voluntary or involuntary, must be paid.
Deceased employee’s wages have to be paid when normally due to the surviving partner 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 legislation concerning record retention of abandoned wage records.
There is no provision in Alabama law concerning tip credit against State minimum wage.
In Alabama the payroll laws covering obligatory rest or meal breaks are only that: minors under sixteen must have half-hour rest after five hours of work.
There is no provision in Alabama law concerning record retention of wage and hour data therefor it is most likely wise to comply with FLSA guidelines.
The Alabama agency charged with enforcing Child Support Orders and laws is:
Alabama Department of Human Resources
Child Support Enforcement Division
50 Ripley St.
Montgomery, AL 36130-1801
334-242-9300
Alabama has the following provisions for child support deductions:
When to start out Withholding? Immediately after receipt of order.
When to send Cost? Within 7 days of Payday.
When to send Termination Notice? Within 7 days of termination.
Maximum Administrative Fee? $2 per month.
Withholding Limits? Federal Guidelines under CCPA.
Please notice that this article just isn’t updated for changes that may and will happen from time to time.