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
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.
We check for accuracy.
We’ll personally contact you to assess your business tax registration needs and discuss the options available.
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.
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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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 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?
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?
- 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?
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?
Learn More About Payroll Processing
- What is Payroll?
- What are Payroll Taxes?
- What is Payroll Processing?
- What is Reasonable Compensation for an S Corporation
- How Do You Set Up Payroll for an LLC or Corporation?
- How Do You Pay Yourself as a Sole Proprietor?
- How Do LLC Owners Get Paid?
- Hiring Family Members in a Small Business
- Independent Contractors vs. Employee
- What Every Small Business Should Know About 1099s
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