Alabama Tax Guide

State tax registration guide for Alabama.

Need to register taxes in another state? Review the State Tax Guide section in our Tax Services Toolkit. 

 

REQUIRED REGISTRATIONS

  • Unemployment Insurance: Alabama Department of Labor

  • Income Tax Withholding: Alabama Department of Revenue

 

REQUIRED INFORMATION

  • SUI ID # (format: XXXXXXXXXX)

  • Current year SUI/ESA rates

  • SIT ID # (format: RXXXXXXXXX)

  • SIT payment frequency

  • SIT “Sign on ID” (format: XXXXXXXXX)

  • SIT “Access Code” (format: XXXXXXXX)

Note: Based on your company's details, your Namely Payroll setup may include several Alabama Tax Codes. Alabama Employment Security Assessment uses the same ID as Alabama Unemployment tax.

Required Client Information for Localities in Alabama:

  • Jefferson OT ID # (format: XXXXXX)

    Note: All Local Alabama Withholding taxes and Occupational License Fee taxes have no known format; use FEIN.

 

REGISTERING FOR UNEMPLOYMENT INSURANCE

If this will be your first time running payroll in Alabama, you can register with the Alabama Department of Labor 

TIP:

Future-date registration is possible for this state's unemployment insurance!

Once registered, you will receive an Unemployment Account Number (UI) and Unemployment Rate (%) which you will need to enter into Namely Payroll under Company > Tax screen (UI tax). When inputting your tax rate in Namely Payroll, please do not include the ESA Rate. Your AL Tax Rate appears in Box 6 of the Tax Rate Notice received from the Alabama Department of Labor.

If you've run payroll in Alabama previously, you can find your Unemployment Account Number on the Tax Rate Notice (Form UC-216F) or the Quarterly Contribution and Wage Report (Form UC-CR4) received from the Department of Labor.

 

CONTACT:

For additional information on registering for taxes, read Employment Tax Registration Overview.

 

REGISTERING FOR INCOME TAX WITHHOLDING  

New employers in Alabama can register with the Alabama Department of Revenue by visiting the website  . Once on the page, you'll want to create a My Alabama Taxes Account (MAT).

TIP:

Future-date registration is possible for this state's income tax withholding! 

Once registered, you will receive a Withholding Tax Account Number (WH) that you will need to enter into Namely Payroll under Company > Tax screen (WH tax). 

If you've run payroll in Alabama previously, you can find your Withholding Tax Account Number on withholding tax account number coupons, the return of income tax withheld (A-1) or coupons received from the Alabama Department of Revenue or call the number below.

CONTACT:

For additional information on registering for taxes, read Employment Tax Registration Overview.

 

OTHER STATE TAXES THAT REQUIRE REGISTRATION

Gadsden, AL

If your business is located in Gadsden, you will be required to obtain a Gadsden Customer Number. If you do not already have one.. You'll want to download a Business License Application and submit the application by mail.

Once registered with the locality, you will receive an Account Number which you will need to enter into Namely Payroll under Company > Tax screen (UI tax). 

Birmingham, AL

If your business is located in Birmingham, you will be required to obtain a Birmingham Tax Account Number. If you do not have an account number.. You'll want to download an Application for Tax Certificate and submit the application by mail.

Employees who work in Birmingham AL are subject to the Birmingham Occupational Tax. This schedule is typically monthly unless the employer has a lower annual liability and has request a different schedule.

Once registered with the locality, you will receive an Account Number which you will need to enter into Namely Payroll under Company > Tax screen (UI tax).  
 

Auburn, AL

If your business is located in Auburn, you will be required to obtain an Auburn Tax Account Number. If you do not have an account number.. You'll want to download a Business Registration Form and submit the application by mail. 

Once registered with the locality, you will receive an Account Number which you will need to enter into Namely Payroll under Company > Tax screen (UI tax). 

 

POWER OF ATTORNEY FORMS

Please note, Namely does not require a Power of Attorney for this state at this time. It is not required to file or remit payments on your behalf. If one is needed to resolve a tax matter, the tax notice team will request one from you at that time.

If a Power of Attorney is requested from you, you should email completed copies of the forms namelyPOA@Namely.com with the CID in the subject line for processing. We will update our system and maintain a copy of each form for record-keeping purposes.

For additional information on Power of Attorney, read Completing the Power of Attorney Package.

 

STATE INCOME WITHHOLDING FORMS

Namely uploads Federal and State W-4 documents to your HRIS site for use during Onboarding, or if you need to send W-4s to employees who need to make withholding adjustments. 

TIP:

The most up to date W-4 documents can be found in the Namely section of the Document dropdown menu in Onboarding and Manage eSignature. 


Form Name: A-4

Accepts Federal W-4: No

Comments: Employees must use the state form A-4 and cannot use the federal W-4 as a substitute because Alabama and federal law vary in the number of exemptions permitted.

 

 PAYROLL + TAX FACTS

Refer to this document for more information:2022-2023 Federal and State: Payroll and Tax Fact Sheet.