Rainbow City, AL Payroll Tax Registration

Nov 21, 2025

If you are an employer in Rainbow City, Alabama, it is important to be aware of the local payroll tax requirements for businesses operating in the city. These requirements may include registering your business with the city and withholding a certain percentage of your employees' wages for local taxes.

How to Register for Payroll Tax in Rainbow City

Rainbow City, Alabama Local City Income Tax Setup for PLLC, Professional Corporation, LLP, LLC, Corporation

Employers must withhold the City Service Fee from their employees’ gross salaries, wages, commissions, and other compensations for any employee working within Rainbow City. This applies to all wages earned within city limits. Businesses must register with the city if the tax is applicable.

  1. Fill Out a Business License Application

    Download and complete the Business License Application.

  2. Fill Out a Declaration Form

    Download and complete the Declaration Form.

  3. Fill Out a Declaration of Representative Form

    Download and complete the Power of Attorney & Declaration of Representative Form.

  4. Submit Your Business License Registration Forms

    Mail your completed application, declaration form, and representative form to the Rainbow City Revenue Department.

Documents and Resources

Use Mosey to register for payroll accounts in Rainbow City.

Register for payroll taxes with the state of Alabama

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