title : Special Features of Alabama Payroll Law and Practice
title : Special Features of Alabama Payroll Law and Practice
Article Body: The following Alabama State Agency is in charge of reporting and collecting state income taxes withheld from employee paychecks:www.ador.state.al.us/withholding/index.html Department of Revenue Income Tax Division Withholding Tax Section 50 North Ripley St. P.O. Box 327480 Montgomery, AL 36132-7480 334-242-1300
For Alabama State Income Tax Withholding, you must utilize Alabama form "A-4, Employee's Withholding Exemption Certificate" rather than a Federal W-4 Form.
Salary reductions made via 401(k) or Section 125 cafeteria plans are not always viewed the same way under the IRS rules. Cafeteria plans in Alabama are taxable for unemployment insurance purposes but not taxable for income tax purposes. Deferrals made under a 401(k) plan are not taxable for income taxes or unemployment purposes.
Alabama levies a flat 5% tax on supplemental wages.
If you'd like, you can submit your Alabama State W-2s using magnetic media.
The following is the Alabama State Unemployment Insurance Agency:The Department of Industrial Relations www.dir.state.al.us/ 649 Monroe Street Montgomery, AL 36131 334-242-8990
Wages up to $8000.00 are the State of Alabama's taxable wage base for unemployment purposes.
If an employer reports wages to the state of Alabama on behalf of at least 250 employees each quarter, they are required to use magnetic media.
In Alabama, records pertaining to unemployment benefits must be kept for a minimum of five years. Name, social security number, dates of employment, rehire, and termination; period earnings; payroll pay periods and pay dates; date and circumstances of termination are typically included in this data.
The state agency in Alabama tasked with upholding the state's wage and hour regulations is:
The Department of Industrial Relations www.dir.state.al.us/ 649 Monroe Street Montgomery, AL 36131 334-242-8990
The State of Alabama does not have a minimum wage policy.
Additionally, Alabama State Law contains no general provisions for paying overtime to employees of non-FLSA covered employers.
Every company in Alabama is required by state law to disclose each new hire, rehire, and recall. Employers are required by federal law to submit the following elements:
- Name of the employee
- Address of the employee
- Social Security number of the employee Name of employer
- Address of employer
- Federal Employer Identification Number (EIN) of the employer
Within seven days of the hiring or rehiring, this information needs to be submitted.
You can send the data electronically, by fax, or by mail as a W4 or similar document.
In Alabama, a late report incurs a $25.00 fine.
You can access the Alabama New Hire Reporting Agency online at www.dir.state.al.us/nh.htm or by calling 334-353-8491.
Direct deposit is required in Alabama; however, the banking institution of the employee's choosing must comply with federal Regulation E.
Regarding pay stub information, Alabama does not have any State Wage and Hour Law restrictions.
Regarding the frequency of payments or the amount of time that must pass between when services are rendered and when an employee is due payment, Alabama has no legal requirements.
Furthermore, Alabama does not have any legal requirements about when to pay an employee who has been fired, whether it was their choice or not.
Wages owed by the deceased employee must be paid to the surviving spouse or guardian of any minor children when due.
In Alabama, unclaimed wages must be turned over to the state after a year in accordance with escheat rules.
Alabama law makes no mention of keeping records of terminated employment.
Alabama law makes no mention of tip credits being deducted from the state minimum wage.
The only mandated meal breaks or rest periods covered by payroll rules in Alabama are for minors under 16 years old, who must take a 30-minute break after five hours of work.
Since Alabama law makes no mention of the preservation of wage and hour records, it is probably best to abide by FLSA regulations.
The Alabama organization in charge of upholding the laws and Child Support Orders is:
Child Support Enforcement Division, Alabama Department of Human Resources 50 Ripley St. Montgomery, AL 36130-1801 334-242-9300 www.dhr.state.al.us/csed/default.asp
The following rules apply to child support deductions in Alabama:
When should I begin withholding? Shortly after the order is received.
Please be aware that this article is not updated to reflect changes that may occasionally occur.
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