Alabama employer tax information
About Alabama employer tax information
This tax guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in Alabama, you must be registered with the Alabama Department of Revenue and the Alabama Department of Labor.
For the Alabama Department of Revenue the 10-digit Alabama Withholding Tax Account Number is required.
For the Alabama Department of Labor, the 10-digit Alabama UC Account Number or the Alabama Total Contribution Rate in the X.XX% format is required.
The Alabama Department of Labor (AL DOL) typically requires employers to file and pay unemployment taxes starting in the quarter that wages are first paid. If you become liable for unemployment taxes and register an account in a later quarter, it may be necessary to file these taxes retroactively. Visit the Alabama Department of Revenue website or contact the AL DOL directly to determine your requirements and ensure any outstanding tax filings are completed promptly to avoid penalties.
Alabama payroll tax details
Square Payroll processes the following per the filing frequency for the listed state agencies.
Monthly withholding tax filing (Form A-6): filed monthly
Quarterly withholding tax return (Form A-1): filed quarterly
Wage and Tax Statement (W-2): filed annually
Reconciliation of Alabama Income Tax Withheld (Form A-3): filed annually
Quarterly contribution (AL UC-CR4): filed quarterly
New hire report: filed as needed
Make unemployment insurance tax filings in Alabama
Unemployment insurance tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
To file online, go to the Alabama Department of Labor website and follow the filing instructions.
Contribution reports are due each quarter as long as your tax account is open. You will be subject to a penalty if you fail to file.
For more information on state unemployment taxes, contact your local field tax representative.
Find your Alabama tax account numbers
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, 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.
For withholding the state requires that the FEIN and state number they have on file matches exactly with what you provide Square. If you provided a different FEIN or possibly your SSN when initially registering you will need to update this with the state to prevent filing issues.
If you are a new business, register online with the AL Department of Labor to receive your account number.
If you already have an AL UC Account Number, look this up online from the Alabama Department of Labor website 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.
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).
You can look this up online from the Alabama Department of Labor website 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.