Payroll Alabama, Unique Aspects of Alabama Payroll Law and Practice
The Alabama State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:
Department of Revenue
Income Tax Division
Withholding Tax Section
50 North Ripley St.
P.O. Box 327480
Montgomery, Alabama 36132-7480
334-242-1300
www.ador.state.al.us/withholding/index.html
Alabama requires that you use Alabama form A-4, Employees Withholding Exemption Certificate instead of a Federal W-4 Form for Alabama State Income Tax Withholding.
Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Alabama cafeteria plans: are not taxable for income tax calculation; are taxable for unemployment insurance purposes. 401(k) plan deferrals are: not taxable for income taxes; are not taxable for unemployment purposes.
In Alabama supplemental wages are taxed at a 5% flat rate.
You may file your Alabama State W-2s by magnetic media if you choose to.
The Alabama State Unemployment Insurance Agency...
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