Alabama Payroll Tax Registration

Congratulations on hiring a new employee in Alabama! As an employer, it is important to be aware of payroll tax registration, a necessary step to comply with state regulations and ensure timely payment of taxes on behalf of your employees.

How Alabama Payroll Registration Works

There are 2 payroll tax setup tasks you may need to complete in Alabama to get your new hire on payroll for the first time. You can follow the guide below to help you get registered directly with the Alabama agencies or use Mosey to do it.

Use Mosey to register for payroll tax in Alabama.

Avoid the manual work and headache of registering with state agencies yourself. Automate it with Mosey and stay compliant.

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Alabama Withholding Tax Setup

If you have Alabama employees, you must register for a withholding tax account with the Department of Revenue.

Register Your Business

Visit MAT and select “Register a business/Obtain a new tax account number” to set up an Alabama tax account.
Add Withholding Information to Your Payroll Provider

Add your account number and withholding schedule to your payroll provider when you receive them.

Alabama Unemployment Compensation Setup

During the current or preceding calendar year, if you have: (a) At least one employee on some day in 20 different weeks, whether or not consecutive, or (b) Paid wages of $1,500 or more in any calendar quarter, you must register with the Department of Labor for an Unemployment Tax account.

Register for an eGov Account

Visit the Department of Labor eGov login page to register for an eGov Account in order to access employer online services.
Register for an Unemployment Tax Account

Log into your eGov account and submit an online Application for Liability (Form SR-2) to register for an Unemployment Tax Account.
Add Unemployment Tax to your Payroll Provider

Once you have your EAN and Unemployment Compensation tax rate, add them to your payroll provider.

How to register your business in more states

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Business tax planning can be complicated. It’s particularly involved for employers with multi-state payroll, who need to figure out withholding obligations in every state where they employ workers. If you do business or employ workers in one of the 15 states that allow local jurisdictions to impose income taxes, you might also need to withhold and remit local income taxes where your employees live, work, or both. What is local income tax?

June 20, 2023

What is Multi-State Payroll?

Remote work is becoming increasingly popular with businesses and employees: According to estimates, flexible work arrangements have become three to ten times more common since 2019. Offering remote work options can give employers access to a national talent pool, reduce overhead costs, and help businesses attract and retain the best people for their teams. This shift also means that an increasing number of companies face multi-state payroll obligations. If you employ out-of-state remote workers, have business locations in multiple states, or have employees who travel for work, you may be required to withhold taxes in multiple states.

June 27, 2023

States With Paid Family and Medical Leave: 2023 Guide

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