Register for
Alabama Payroll Taxes

CorpNet can help you register for Alabama payroll taxes. This saves you time and money, while also making it quick and easy to pay your employees.

Alabama Payroll Tax Registration Bundle
Starting at $199

Here’s How It Works

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We collect your information.

CorpNet will collect information about you and your business to determine your eligibility for registration with the Alabama Department of Revenue and the Alabama Department of Labor.

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We check for accuracy.

We’ll personally contact you to assess your business tax registration needs and discuss the options available.

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We work closely with you.

After you place your order, your dedicated CorpNet agent will collect additional information needed to successfully complete your tax registration request. Once we have all we need, we will submit your application to the state.

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We deliver!

We’ll provide you with your employer account registration details so you can give them to your payroll provider to help you pay your employees faster.

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July 10, 2020

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Alabama Payroll Tax FAQs

Am I Required to Register for Alabama Payroll Taxes?

If you operate a business, and employ one or more employees, you must register as an employer with the Alabama Department of Revenue and the Alabama Department of Labor.

What Are State Payroll Taxes?

Alabama manages state payroll taxes through the Department of Revenue.

Alabama has a progressive income tax from 2% to 5%. Depending on where your employees live or work, some cities in Alabama also impose a levy on income taxes from 0% to 2%.

Alabama State Unemployment Insurance (SUI) varies by calendar year. 2021 rates range from 0.65% to 6.8%. New employers pay a flat rate of 2.7%.

Alabama does not offer state disability insurance.

Alabama employers must register with the Alabama Department of Revenue for state withholdings (payroll taxes) and the Alabama Department of Labor for unemployment taxes.

What is Unemployment Insurance Tax?

Unemployment Insurance Tax (UI) is a federal program that provides temporary payments to workers that are unemployed, and this employment status is not based on their own actions.

What Kind of Information Do I Need for Payroll Tax Registration?

  • Name and Social Security number of all responsible parties
  • Doing Business As (DBA), if applicable
  • Physical business address and mailing address
  • Business phone number
  • Valid email address (contact person and business)
  • Nine-digit federal Employer Identification Number (EIN)
  • Industry description

Are There Any Alabama Employees Exempt From Withholding Tax?

Yes, the following employees are exempt from withholding tax, but wages paid represent taxable income. Employers must provide employees and the Department of Labor with W2s. Employees must report the income on their personal income taxes.

  • Domestic employees in private homes
  • Merchant seamen
  • Duly-ordained ministers
  • Agricultural employees

What Kind of Information Do I Need for Registration?

To register as one of the following entity types in Alabama:

  • Corporation
  • Fiduciary
  • Governmental Agency
  • LLC
  • LLP
  • Non-Profit
  • Partnership
  • Trust

You will need the following:

  • Legal Name
  • Location (Street) Address
  • Contact Information
  • Officer/Owner Information
  • Federal Employer Identification Number
  • Date of Organization or Qualification
  • NAICS Code
  • Entity Subtype
  • Commence Date

To register as an Individual (Sole Proprietor), you will need the following:

  • Legal Name
  • Location (Street) Address
  • Contact Information
  • NAICS code
  • Commence Date

What is a Withholding Account Number and Unemployment Compensation Account Number?

Once CorpNet registers your business with the Alabama Department of Revenue, you will be issued a Withholding Account Number. CorpNet will also register your business with the Alabama Department of Labor, and you will then be issued an Unemployment Compensation Account Number.

What if I Don’t Have an EIN?

An EIN is a Federal Tax Identification Number provided by the IRS. If you do not have an EIN already, CorpNet can obtain one for you via their FTIN service.

What if I Don’t Have a Payroll Processor?

CorpNet works with the leading payroll processors and we can connect you with our trusted partners who will pay your employees, accrue the necessary taxes, and complete the necessary payments and documentation with state and federal authorities.

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