| The Alabama State Agency that oversees the | | | | The information can be sent as a W4 or |
| collection and reporting of State income taxes | | | | equivalent by mail, fax or electronically. |
| deducted from payroll checks is: | | | | There is a $25.00 penalty for a late report in |
| Department of Revenue | | | | Alabama. |
| Income Tax Division | | | | The Alabama new hire-reporting agency can be |
| Withholding Tax Section | | | | reached at 334-353-8491 or on the web at |
| 50 North Ripley St. | | | | Alabama does allow compulsory direct deposit but |
| P.O. Box 327480 | | | | the employee's choice of financial institution must |
| Montgomery, Alabama 36132-7480 | | | | meet federal Regulation E regarding choice of |
| 334-242-1300 | | | | financial institutions. |
| Alabama requires that you use Alabama form | | | | Alabama has no State Wage and Hour Law |
| "A-4, Employee's Withholding Exemption | | | | provisions concerning pay stub information. |
| Certificate" instead of a Federal W-4 Form for | | | | In Alabama there are no statutory requirements |
| Alabama State Income Tax Withholding. | | | | concerning pay frequency or the lag between |
| Not all states allow salary reductions made under | | | | when the lag time between when the services |
| Section 125 cafeteria plans or 401(k) to be | | | | are performed and when the employee must be |
| treated in the same manner as the IRS code | | | | paid. |
| allows. In Alabama cafeteria plans: are not taxable | | | | Nor for that matter does Alabama have legal |
| for income tax calculation; are taxable for | | | | provisions concerning when a terminated |
| unemployment insurance purposes. 401(k) plan | | | | employee, voluntary or involuntary, must be paid. |
| deferrals are: not taxable for income taxes; are | | | | Deceased employee's wages must be paid when |
| not taxable for unemployment purposes. | | | | normally due to the surviving spouse or custodian |
| In Alabama supplemental wages are taxed at a | | | | of minor children. |
| 5% flat rate. | | | | Escheat laws in Alabama require that unclaimed |
| You may file your Alabama State W-2s by | | | | wages be paid over to the state after one year. |
| magnetic media if you choose to. | | | | There is no provision in Alabama law concerning |
| The Alabama State Unemployment Insurance | | | | record retention of abandoned wage records. |
| Agency is: | | | | There is no provision in Alabama law concerning |
| The Department of Industrial Relations | | | | tip credits against State minimum wage. |
| 649 Monroe Street | | | | In Alabama the payroll laws covering mandatory |
| Montgomery, Alabama 36131 | | | | rest or meal breaks are only that: minors under |
| 334-242-8990 | | | | 16 must have 30 minutes rest after five hours of |
| The State of Alabama taxable wage base for | | | | work. |
| unemployment purposes is wages up to $8000.00. | | | | There is no provision in Alabama law concerning |
| Alabama requires Magnetic media reporting of | | | | record retention of wage and hour records |
| quarterly wage reporting if the employer has at | | | | therefor it is probably wise to follow FLSA |
| least 250 employees that they are reporting that | | | | guidelines. |
| quarter. | | | | The Alabama agency charged with enforcing Child |
| Unemployment records must be retained in | | | | Support Orders and laws is: |
| Alabama for a minimum period of five years. This | | | | Alabama Department of Human Resources |
| information generally includes: name; social security | | | | Child Support Enforcement Division |
| number; dates of hire, rehire and termination; | | | | 50 Ripley St. |
| wages by period; payroll pay periods and pay | | | | Montgomery, AL 36130-1801 |
| dates; date and circumstances of termination. | | | | 334-242-9300 |
| The Alabama State Agency charged with | | | | Alabama has the following provisions for child |
| enforcing the state wage and hour laws is: | | | | support deductions: |
| The Department of Industrial Relations | | | | - When to start Withholding? Immediately after |
| 649 Monroe Street | | | | receipt of order. |
| Montgomery, Alabama 36131 | | | | - When to send Payment? Within 7 days of |
| 334-242-8990 | | | | Payday. |
| There is no provision for minimum wage in the | | | | - When to send Termination Notice? "Promptly" |
| State of Alabama. | | | | - Maximum Administrative Fee? $2 per month. |
| There is also no general provision in Alabama | | | | - Withholding Limits? Federal Rules under CCPA. |
| State Law covering paying overtime in a | | | | Please note that this article is not updated for |
| non-FLSA covered employer. | | | | changes that can and will happen from time to |
| Alabama State new hire reporting requirements | | | | time. |
| are that every employer must report every new | | | | Charles J. Read, CPA has been in the payroll, |
| hire, rehire and recall. The employer must report | | | | accounting and tax business for 30 years, the last |
| the federally required elements of: | | | | fifteen in private practice. |
| - Employee's name | | | | Mr. Read is the author of "How to Start a New |
| - Employee's address | | | | Business." |
| - Employee's social security number | | | | To find professional payroll service at a budget |
| - Employer's name | | | | price go to a paperless payroll company. |
| - Employers address | | | | For a full service payroll bureau with CPA's on |
| - Employer's Federal Employer Identification | | | | staff visit . |
| Number (EIN) | | | | See an excerpt of Mr. Read's interviews from |
| This information must be reported within 7 days | | | | William Shatners "Heartbeat of America" television |
| of the hiring or rehiring. | | | | show on the web sites linked above. |