Payroll in Alabama Payroll practice in Alabama and unique aspects of the law
- introduction:
Alabama payroll has some unique aspects of law and payroll terminology.
We include some of the details and laws explained in this article, including tax withholding and reporting information.
Work on and report unemployment insurance taxes, child support withholding, and wage and hour laws.
The state of Alabama is an agency that oversees the collection and reporting of state income taxes that are deducted from payroll checks:
Revenue Department
Income Tax Division
Withholding Tax Department
50 North Ripley Street
s. B 327480
Montgomery, Alabama 36132-7480
334-242-1300
Requires the state of Alabama to use Form A-4, Employee Tax Credit Withholding Certificate instead of the federal Form W-4, Alabama Income Tax Withholding Certificate.
Not all states allow wage reductions under Section 125 of 401(k) or cafeteria plans to be treated in the same way as IRS law allows.
Alabama Cafeteria Plans: These are not taxable for income tax purposes, and are taxable for unemployment insurance purposes. 401(k).
Deferral Plan: Not subject to income taxes, and not taxable for unemployment purposes.
Overtime pay in Alabama is taxed at a flat rate of 5%.
Alabama W-2s can be sent via magnetic media if you choose.
The Alabama Unemployment Insurance Agency is:
Industrial Relations Department
649 Monroe Street
Montgomery, Alabama 36131
334-242-8990
Wages up to $8,000.00 are taxable base wages in Alabama for unemployment purposes.
Alabama requires magnetic media reports for quarterly wage reports if the employer has at least 250 employees reporting for that quarter.
Alabama must maintain unemployment records for at least five years. This information generally includes (name), social protection number, dates of hire, rehire, termination, date, terms of termination, wages by period, pay periods, and pay dates.
Enforcement of state wage and hour laws by the Alabama agency is:
The Alabama agency has no ruling on the minimum wage.
There is no general provision in Alabama law covering the payment of overtime pay to an employer that is not covered by the FLSA.
Alabama's new hire reporting requirements state that all employers must report every new hire, rehire, and recall. The employer must report the required items which are as follows:
Employee Name
Employee address
The employee's social security number
business owner's name
Employer address
Federal Employer Identification Number
This information must be reported at least 7 days after hiring or rehiring.
Information can be submitted as a W4 form or equivalent by fax or email. There is a $25.00 penalty for late reports in Alabama.
You can reach the Alabama New Employment Reporting Agency by calling 334-353-8491 or on the web page at www.dir.state.al.us/nh.htm.
The state of Alabama does not allow mandatory direct deposit, but the employee's choice of financial institution complies with Federal Regulation E regarding choice of financial institutions.
Alabama does not have wage and hour law provisions regarding payroll information.
In the state of Alabama, there are no legal requirements regarding how often an employee must be paid or the time lag between when an employee is paid and when services are rendered.
Alabama has no statutory provisions regarding when an employee terminated should be paid, voluntarily or involuntarily.
A deceased employee must be paid when it would normally be payable to a spouse or guardian of surviving minor children.
In Alabama, probate laws require that unclaimed wages be paid to the state after one year.
There is no provision in state law regarding the maintenance of payroll records.
Alabama There is no provision in the law regarding tips for minimum wage in Alabama.
The payroll laws covering mandatory rest or meal periods are as follows: Minors under 16 after five hours of work must receive thirty minutes of rest.
Alabama has no provision in law regarding the maintenance of wage and hour records, and it may be wise to follow FLSA guidelines.
This agency is charged with enforcing child support laws and orders:
Alabama Department of Human Resources
Child Support Enforcement Division
50 Ripley Street
Montgomery, AL 36130-1801
334-242-9300