What is the state minimum wage? 

  • $7.25/hour (equals federal minimum wage)

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?

  • 2023 Taxable Wage Base – 8,000
  • 2023 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: [email protected]

How do I submit Child Support payments?

Additional Resources:

Alabama Department of Revenue
50 North Ripley Street
Montgomery, AL 36104
(334) 242-1170
Email/Submit a request
Alabama Department of Labor
649 Monroe St
Montgomery, AL 36131
(334) 309-9000
Alabama Forms & Publications Alabama State Laws

Get A Quote For Alabama Payroll Services

  • This field is for validation purposes and should be left unchanged.