Alabama Payroll Tax and Labor Laws

Get your Alabama State Tax ID Number 

Click HERE to obtain State Tax ID  

Click HERE to obtain State Unemployment Tax ID  

Alabama Wage and Hour Laws 

Minimum Wage  

There is no state-mandated minimum wage law in Alabama. Covered employers in Alabama subject to the Fair Labor Standards Act must follow the federal minimum wage standard of $7.25 per hour.  

Overtime  

There is no state-mandated overtime law in Alabama for private employers. Covered employers in Alabama must follow the federal overtime laws as prescribed in the Fair Labor Standards Act (FLSA).  

Pay Frequency  

There are no state-mandated standards related to frequency of pay periods. Covered employers in Alabama must follow the federal requirement that wages are due on the regular payday for the pay period covered.  

Alabama Unemployment

Taxable Wage Base ($000s):                                $8,000 

New Employer Rate (% Taxable Wages):            2.7% 

Employee Tax Rate (% Taxable Wages):             None 

Alabama Income Tax Withholding 

Because Alabama and federal law vary in the number of exemptions permitted, employees must use the state form A4 and may not use the federal W-4 as a substitute. Get the Alabama State A4 Form HERE.  

For more information on Alabama’s withholding rules, please click HERE.  

Alabama State Resources 

Alabama Department of Revenue  

Alabama Department of Labor  

Alabama Unemployment  

Alabama SUI Rate  

SurePayroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.  

This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.  

Revised 1/1/2024