Square Payroll processes the following per the frequency below to the listed state agencies: Employees in Alabama fill out form A4, Employee's Withholding Tax Exemption Certificate, to be used when calculating withholdings. State of Alabama Tax Accounts: Register With Alabama Department of Revenue View Details Alabama new employers need to register with the Department of Revenue for a withholding tax account number for state income taxes (SIT). Alabama Payroll Tax Details. Withholding Formula >(Alabama Effective 2020)<. Alabama Salary Paycheck and Payroll Calculator Calculating paychecks and need some help? What is a local income tax? Overtime . Alabama has many local income taxes. Alabama Payroll Services will assist you with all administration task needs of your small business payroll services and all payroll taxes. Alabama is a state with relatively low income tax and effective property tax rates. What are my state payroll tax obligations? Be sure you have met the minimum wage requirements for the federal government. Overview; Small Business Payroll (1-49 Employees) Midsized to Enterprise Payroll (50-1,000+ Employees) Time & Attendance Withholding Formula >(Alabama Effective 2020)< Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages. IRS Publications 15 and 15-B explain which benefits are pre-tax for various purposes, and professional-grade payroll software will help you keep track of all tax-related calculations. Alabama uses the Internal Revenue Service's (IRS's) Common Law Test to determine who is an employee for employment tax purposes. We apologize for the inconvenience. Alabama Payroll Taxes 11 Steps to Compliance in the Dixie State. These taxes are calculated and reported differently, depending on the laws of the particular states where your employee lives … We can help you find a good Alabama payroll service. To use our Alabama Salary Tax Calculator, all you have to do is enter the necessary details and click on the "Calculate" button. Some employment types are exempt from Alabama withholding tax. It does not matter which state your employees live in. If you continue to receive this message, please contact MAT Support. Author: Vicki M. Lambert, The Payroll Advisor Summary. Alabama's income tax are progressive, meaning higher earners will be subject to higher income tax rates. Harbor Compliance provides payroll tax registration services in every state to help your company hire employees and process payroll on time. The payroll deferment only applies to people making less than $2000 weekly, or $104,000 yearly after taxes. For more information, please read our help article, “What Employers Should Know About Employee Payroll Records”. See Common Law Test. Alabama new employers need to register with the Department of Revenue for a withholding tax account number for state income taxes (SIT). This Alabama Payroll Taxes Calculator is used to calculate the taxes for the Alabama Withholding, Unemployment and Employment Security Enhancement Taxes for both employee and employer. Effective Jan. 1, 2020, unemployment tax rates for experienced employers are to be determined with Schedule D and are to range from 0.65% to 6.8%, the spokeswoman told Bloomberg Tax in an email. You will be required to keep employee payroll records for at least three years. Calculating Employer Payroll Taxes In addition to the taxes you withhold from an employee’s pay, you as the employer are responsible for paying certain payroll taxes as well: FICA Matching: You are required to match the employee’s FICA tax withholding, which means your company will pay 6.2% tax for Social Security and 1.45% tax for Medicare. Processing payroll in Alabama? Any wages earned by a resident or a non-resident while working in Alabama are subject to Alabama state payroll withholding taxes. Payroll Cycle . The credit will be the amount of tax charged by the nonresident state or the tax that would have been charged by the resident state, whichever is less. Main Agency Responsible for Alabama Payroll Taxes, Alabama Department of RevenueIndividual & Corporate Tax DivisionWithholding Tax SectionGordon Persons Building, Room 432650 North Ripley St.Montgomery, AL 36104www.revenue.alabama.gov, Physical Addresses for Alabama Tax Service Centers, AUBURN/OPELIKA Service Center3300 Skyway DriveAuburn, AL 36830Phone -- (334) 887-9549, JEFFERSON/SHELBY Service Center2020 Valleydale Road, Suite 208Hoover, AL 35244Phone -- (205) 733-2740, DOTHAN Service Center344 North Oates St.Dothan, AL 36303Phone -- (334) 793-5803, GADSDEN Service Center235 College StreetGadsden, AL 35901Phone -- (256) 547-0554, HUNTSVILLE Service Center994 Explorer BoulevardHuntsville, AL 35807Phone -- (256) 922-1082, MOBILE Service Center955 Downtowner BlvdMobile, AL 36609Phone -- (251) 344-4737, MONTGOMERY Service Center1021 Madison AvenueMontgomery, AL 36104Phone -- (334) 242-2677, MUSCLE SHOALS Service Center874 Reservation RoadMuscle Shoals, AL 35662Phone -- (256) 383-4631, TUSCALOOSA Service Center518 19th AvenueTuscaloosa, AL 35401Phone -- (205) 759-2571, Mailing Addresses for Alabama Tax Service Centers, AUBURN/OPELIKA Service CenterPO Box 2929Auburn, AL 36831- 2929, JEFFERSON/SHELBY Service CenterP.O. Option 2: Payroll Software Saves AL Businesses Time and Money by Calculating the Taxes Automatically EzPaycheck Payroll software is a good choice for many small business employers. Alabama Department of Revenue Individual & Corporate Tax Division Withholding Tax Section Gordon Persons Building, Room 4326 50 North Ripley Montgomery, AL 36104 Phone Numbers Withholding 334-242-1300 https://www 103 likes. The hourly minimum wage in Alabama is $7.25 (federal minimum) Payroll. See Common Law Test . How does Alabama rank? It does not matter which state your employees live in. Alabama Payroll & Tax Services specialize in a variety of accounting services with outstanding support. Save money and don’t sacrifice features you need for your business. General . Subtract the nontaxable biweekly Federal Health Benefits Plan payment (s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1. 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