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Alabama Employer Tax Information

To sign up for Square’s online payroll services in Alabama, you must be registered with the Alabama Department of Revenue and the Alabama Department of Labor so we can pay and file your state taxes.

Agency Required Tax Information Format
Alabama Department of Revenue Alabama Withholding Tax Account Number 0000000000 (10 digits)
Alabama Department of Labor Alabama UC Account Number 0000000000 (10 digits)
Alabama Total Contribution Rate X.XX%

Alabama Tax Account Numbers

Alabama Withholding Tax Account Number

  • If you are a new business, register online with the AL Department of Revenue. Your new account number will either begin with an R or a zero. If your account number is less than 10 digits, please add zeros to the beginning of the number.
  • If you already have an AL Withholding Tax Account Number, you can find this on correspondence from the AL Department of Revenue or by contacting the agency at 334-242-1584.

Alabama Unemployment Compensation (UC) Account Number

  • If you are a new business, register online to retrieve your account number from the AL Department of Labor.
  • If you already have a AL UC Account Number, look this up online or find it on the Tax Rate Notice mailed by the AL Department of Labor. If you are unsure, contact the agency at 334-242-2067.

Alabama Tax Rates

  • The AL Total Contribution Rate is a combination of your AL UI Tax Rate and the AL Employment Security Assessment Rate (which is the same for all businesses). The AL UI Tax Rate for most new employers is 2.7%.
  • You can look this up online or find it on the Tax Rate Notice mailed by the AL Department of Labor. If you are unsure, contact the agency at 334-242-2067.

Alabama Payroll Tax Details

Square Payroll processes the following per the frequency below to the listed state agencies:

Agency Filing Frequency
Alabama Department of Revenue Monthly Withholding Tax Filing (Form A-6) Monthly
Quarterly Withholding Tax Return (Form A-1) Quarterly
Wage and Tax Statement (W-2) Annually
Annual Reconciliation of Alabama Income Tax Withheld (Form A-3) Annually
Alabama Department of Labor Quarterly Contribution (AL UC-CR4) Quarterly
New Hire Report As Needed
Learn more about: Payroll

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