State guide
How to Register for Alabama Payroll Taxes
Let a dedicated tax manager file your Alabama registrations with you, or use the step-by-step guide below.
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At a glance
2 agencies: Department of Revenue and Department of Workforce
2.70% new employer UI rate
$8,000 UI wage base
New hires due within 7 days
Done for you
Two Alabama accounts, filed right
Skip the paperwork. Your dedicated PayAdvisors tax manager registers you with the state and gets your tax IDs for you. In Alabama that means a withholding tax account with the Alabama Department of Revenue and an unemployment account with the Alabama Department of Workforce.
- One tax manager who owns your file
- My Alabama Taxes and eGov registrations filed with you
- New hire reporting set up for the 7-day rule
- Both account numbers confirmed before payroll
Hands-on help from a real person who knows Alabama employer accounts. Use it alone or with managed payroll.
Quick answer
Alabama payroll tax registration at a glance
Alabama uses two agencies. The Alabama Department of Revenue (ALDOR) issues withholding tax accounts through My Alabama Taxes (MAT), and you register when you hire employees. The Alabama Department of Workforce handles unemployment compensation (UC) tax, and you apply for a UC account number in its eGov system once you have paid wages for work in Alabama.
New employers pay a 2.70% UC rate on the first $8,000 of each employee's wages until they qualify for an experience rate. Alabama's new hire deadline is seven days.
Who must register
Who registers in Alabama
Withholding starts with the first employee. UC has its own tests.
| Situation | Alabama requirement |
|---|---|
| Employees working in Alabama | Register with ALDOR for a withholding tax account |
| Alabama residents working outside Alabama | Withhold Alabama tax unless you withhold for the state where they work |
| One or more workers on some day in 20 or more weeks, this year or last | Liable for UC tax |
| $1,500 or more in wages in any calendar quarter, this year or last | Liable for UC tax |
| Five or more employees, including corporate officers and LLC members | Carry workers' compensation |
Registration steps
How to register in Alabama
Two online applications.
- Open My Alabama Taxes. In the "Businesses" section, choose "Register a business/Obtain a new tax account number" and complete the withholding tax application.
- Note your ALDOR account number. New numbers are 10 characters and begin with an "R." Give the exact number to whoever runs your payroll.
- Apply for a UC account number in eGov with the Department of Workforce once you have paid wages for work in Alabama. If eGov tells you to send the paper application, do that.
- Collect Form A-4 from every employee. The federal W-4 is not a substitute for Alabama withholding.
- Report each new hire within seven days through the Alabama Department of Workforce's New Hire Center, or twice monthly (12 to 16 days apart) if you report electronically. Employers with five or more employees must report online.
Two agencies, tight clocks
Two agencies and a seven-day new hire clock
Seven-day new hire reports and monthly returns above $1,000 catch new employers off guard.
On your own
- Two portals, My Alabama Taxes and eGov
- Knowing when A-6 monthly returns kick in
- Meeting the seven-day new hire rule
With your PayAdvisors tax manager
- Your tax manager files both with you
- We track your withholding each month
- You get one calendar for every filing
Handled by your tax manager.
Prepare
What to collect first
Have these ready before you apply.
- Your federal EIN, which new hire reports also require
- The date you first paid wages for work in Alabama
- A completed Form A-4 from each employee
- Whether any Alabama residents work in other states
- Details of any Alabama business you acquired, since a successor can take on the predecessor's UC experience
Accounts
What you end up with
Two numbers, two agencies.
- An ALDOR withholding tax account number, 10 characters beginning with "R."
- A UC employer account number (EAN) from the Department of Workforce, used on quarterly wage reports and new hire reports.
- A tax rate notice you can download in eGov once your individual rate replaces the 2.70% initial rate.
Rates
Alabama payroll tax rates
New employers start on a fixed rate.
| Item | Figure |
|---|---|
| New employer UC rate | 2.70% |
| UC taxable wage base | First $8,000 per employee per year |
| Experience rate range | 0.20% to 6.80%, including the 0.06% Employment Security Enhancement Assessment, plus any shared cost |
| Bonuses and supplemental wages | May be withheld at a flat 5% |
Pitfalls
Alabama mistakes to avoid
Most problems are missed returns and late reports.
- Skipping the quarterly A-1. Every registered withholding agent files Form A-1 each quarter, even with no tax withheld.
- Missing the monthly switch. Withhold more than $1,000 in the first or second month of a quarter and that month needs a Form A-6.
- Paying $750 or more on paper. A single withholding payment of $750 or more must be filed and paid electronically.
- Using a W-4 instead of an A-4. Without an A-4, you withhold at zero exemptions.
- Late UC reports. The penalty is $25 or 10% of the tax owed, whichever is greater, plus 1% a month interest on unpaid contributions.
Related duties
Other Alabama employer obligations
These run alongside the tax accounts.
- New hire reporting. Report each new or recalled employee within seven days of the hire or rehire date, or twice monthly (12 to 16 days apart) if you report electronically. Fines can reach $25 per violation. Employers with five or more employees must report online.
- Workers' compensation. Required at five or more employees, counting full- and part-time employees, corporate officers and LLC members.
- Local occupational taxes. ALDOR does not administer them. Ask each city or county where you have employees.
- Posters. Display the Alabama Child Labor Law, Workers' Compensation Notice and Your Job Insurance posters.
Filing calendar
Alabama deadlines after registration
Quarterly returns for everyone, monthly for some.
- Form A-1 quarterly return: by the last day of the month after each quarter.
- Form A-6 monthly return: by the 15th of the next month for any month over $1,000 in the first two months of a quarter.
- Form A-3 annual reconciliation with W-2s: January 31; electronic if you file 10 or more W-2s or filed and paid electronically during the year. Zero A-3s are still required.
- UC Quarterly Contribution and Wage Report: online in eGov by January 31, April 30, July 31 and October 31.
Official links
Alabama agency links
Official forms, rates and guidance.
- ALDOR: Do I need a withholding tax account number?
- ALDOR: Withholding tax tables and instructions (January 2026)
- ALDOR: Electronic filing of withholding and Form A-3
- Alabama Department of Workforce: Employer FAQ
- Alabama Department of Workforce: New hires
- Alabama Department of Workforce: Workers' compensation coverage
- Alabama Department of Workforce Status Unit (UC account numbers): 334-954-4730
Alabama registration questions
How do I register for Alabama payroll taxes?
Register for a withholding tax account in My Alabama Taxes, and apply for an unemployment compensation account number in the Department of Workforce's eGov system once you have paid Alabama wages.
What is the Alabama new employer unemployment rate?
2.70% on the first $8,000 of wages for each employee, until your rate is set by experience rating.
When does an Alabama employer owe unemployment tax?
When it has one or more workers in 20 or more weeks, or pays $1,500 or more in wages in a calendar quarter, in the current or preceding year.
How fast must I report new hires in Alabama?
Within seven days of the hire or rehire date, or twice monthly (12 to 16 days apart) if you report electronically. Employers with five or more employees must report online, and fines can reach $25 per violation.
Do I file monthly or quarterly withholding in Alabama?
Everyone files the quarterly A-1. Any month in the first two months of a quarter with more than $1,000 withheld also needs a monthly A-6 by the 15th of the next month.
I am the only employee of my S corporation. What do I need in Alabama?
If you pay yourself wages, you need the ALDOR withholding account, and you may need a UC account once you meet the liability tests. A dedicated tax manager can complete the registration with you as part of our S corp payroll package.
Does Alabama have local payroll taxes?
Some cities and counties levy occupational taxes. ALDOR does not administer them, so check with each city or county.
How is registration priced?
Most states issue two IDs, one for withholding and one for unemployment insurance. Pricing depends on the states and accounts involved. We'll quote it on a quick consultation.
Is this tax advice?
No. It summarizes official guidance from the Alabama Department of Revenue and the Alabama Department of Workforce. Ask your CPA or tax advisor about your own facts.
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Next step
Let us set up Alabama with you
A dedicated tax manager files your ALDOR and Department of Workforce registrations with you, sets up new hire reporting and confirms both accounts before your first payroll.
About this guide
Last verified and sources
Last verified October 28, 2026 against the Alabama Department of Revenue and the Alabama Department of Workforce. This guide is general information, not tax or legal advice.
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- Payroll setup for new businesses
- Payroll tax filing and compliance
- S corp payroll
- S corp payroll setup checklist
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- Our services
Sources
- Alabama Department of Revenue, Do I need a withholding tax account number?
- Alabama Department of Revenue, Withholding Tax Tables and Instructions for Employers and Withholding Agents (revised January 2026, PDF)
- Alabama Department of Revenue, Electronic Filing of Withholding Tax and Annual Reconciliation
- Alabama Department of Workforce, Employer FAQ
- Alabama Department of Workforce, New Hires
- Alabama Department of Workforce, How many employees must you have before coverage is mandatory?