Alabama Payroll Tax Requirements

Agency main website	Alabama Department of Revenue	Alabama Department of Labor
Tax Type/Format	Withholding Tax Account Number: 0000000000 (10 digits)	Unemployment Compensation(UC) Tax Account Number: 0000000000 (10 digits)
Tax Rate	-	Total Contribution Rate: X.XX%
Agency Phone Number	(334) 242-1584	(334) 954-4730
Agency Address	50 N. Ripley Street Montgomery, AL 36104	649 Monroe Street Montgomery, AL 36131-0099

• AL Income Tax

  • AL Quarterly W/H Return (AL A-1)

  • AL Annual W/H Reconciliation (AL A-3)

• AL Unemployment Insurance Tax and Employment Security Enhancement Assessment

  • AL Quarterly Contribution (AL UC-CR4)

• Various local income taxes (Depending on where your worker lives/works in AL, the followinglocal tax information may apply to you)

  • Auburn

  • Haleyville

  • Irondale Occupational License Fee

Withholding Account Number: If you currently possess an AL Withholding Tax Account Number, you can locate it in correspondence from the AL Department of Revenue or by reaching out to the agency directly at (334) 242-1584.

Unemployment Account Number: If you already possess an AL UC Account Number, you can access it online or locate it on the Tax Rate Notice sent by the AL Department of Labor. If uncertain, contact the agency at (334) 242-2067.

Unemployment Tax Rate information is online or on the Tax Rate Notice sent by the AL Department of Labor. You can contact the agency with questions at (334) 242-2067.

Below is the information to follow to set up your company with Alabama for the first time. If you believe you already have a state tax account in place, contact the respective state agency directly to obtain your existing account credentials.

Withholding Tax Account Number

Register for an AL Withholding Tax Account number by following the steps below:

1. Click the following link to the online registration process with the AL Department of Revenue.

2. Click the Go to MAT link on the registration page.

3. Fill in your company entity type and FEIN and then click Next to follow all registration steps.

4. When asked to select the tax types you are applying for, be sure to check the box for Payroll Withholding Tax. From there, contact the AL Dept of Revenue or your CPA to assist you in determining what additional taxes apply to your business. Some business taxes may apply that we do not handle on your behalf.

5. Once you complete the online register, it takes 3-5 days to receive an account number. Your newly assigned account number initiates with either an R or a zero. In the case that your account number is fewer than 10 digits, add zeros to the beginning of the number.

Unemployment Compensation (UC) Account Number

For new businesses, complete the online registration process to obtain your account number from the AL Department of Labor. You'll receive your Alabama Unemployment account number as soon as you finish registration.

The AL Total Contribution Rate comprises both your AL UI Tax Rate and the uniform AL Employment Security Assessment Rate applicable to all businesses. Most new employers will have a UI tax rate of 2.7%, but you can verify this on your tax rate notice by logging into your AL DOL account.

Linking us as your third-party administrator ensures we are able to complete the quarterly filings and amendments (if applicable) in a timely manner.

The state requires that we obtain and provide your company's assigned Account Number, Sign-OnID, and Access Code. Email [INSERT EMAIL] with a copy of this correspondence from the tax agency. Below is a sample letter that employers receive that shows this information: