Alabama

Last Updated August 07, 2017

State Tax Guidelines

Alabama Department of Revenue – Withholding Tax

Agency Information

Add to existing company setup

Submit a request to your service team to add AL (withholding) to your company setup. Please include the below with your request:

  • Withholding – Deposit Frequency and Account number.  This can be found on a withholding tax coupon or return on income tax withheld form A-1.  If you’re unsure of your deposit frequency or account number, you can call the agency at 334-242-1584.
  • Third Party Access – TPA Access for withholding is not required to file and pay on your behalf.  However, TPA access is needed in order to complete amended returns if needed.   If a request for TPA access is needed please see the Third Party Access section below for instructions.

Register a new company

Before you can register for a Withholding Tax Account number, you will need to be registered as an employer with the Alabama Department of Revenue. This is a mandatory prerequisite for any employer to obtain a Withholding Tax Account number:

  1. You can go register for this online with the Alabama Department of Revenue at https://myalabamataxes.alabama.gov/_/
  2. Click on the BUSINESS icon then Obtain a New Tax Account Number. This will be on the bottom of the page.

Once you have a tax account open follow the steps below to get your Withholding Tax Account number:

  1. New employers in Alabama can register for a Withholding Account online with the Alabama Department of Revenue at https://revenue.alabama.gov/sales-use/business-tax-online-registration-system/
  2. Once on this page, you’ll want to read the instructions and then click the icon that says Go to MAT.
  3. Sign in to your tax account and request to receive a Withholding Account.

You should receive your account number by mail in several weeks.  We recommend calling after 3 – 5 days from registering to receive it sooner.

Third Party Access Instructions

  1. Go to www.Myalabamataxes.alabama.gov
    1. Sign up as a “1st time user”
    2. From the drop down menu choose Withholding
    3. Key in the Account Number, Sign on Id, Access Code from letter
    4. Select Validate
    5. Print confirmation
  2. An email will be sent to the employer with first time log in authorization code

If a login already exists, only follow the below instructions.

  1. Log in and grant access to TPA:
    1. Select Profile, manage logon, settings, TPA=Yes
    2. Next you will be asked to create another password just for TPA access
    3. Please provide that password and copy of letter from Alabama with Account Number, Sign on Id and Access Code to your service team.

Alabama Department of Labor – Unemployment tax

Agency Information

Add to existing company setup

Submit a request to your service team to add ALSUI (unemployment) to your company setup. Please include the below with your request:

  • Unemployment – Tax rate and Account number.  This can be found on a Tax Rate Notice or the Quarterly contribution and Wage Report Form UC-CR4.  If you’re unsure of your tax rate or account number, you can call the agency at 334-242-8830.
  • Power of Attorney – Before we can file and pay your Alabama Unemployment Tax, the Alabama Department of Labor (DOL) requires that you submit a notarized Power of Attorney (POA) form. Please obtain the prefilled form from your client service representative.

Register a new company

Please register online with the Alabama Department of Labor at https://labor.alabama.gov/egovregistration/ to obtain your Alabama Unemployment tax account.  Once you have registered, you will receive your Unemployment Account Number instantly online.

Power of Attorney Information

Before we can file and pay your Alabama Unemployment Tax, the Alabama Department of Labor (DOL) requires that you submit a notarized Power of Attorney (POA) form. Please obtain the prefilled form from your client service representative.