Withholding
Withholding requirements
Supplemental rate
Employers should use a rate of 5%.
State Unemployment Insurance (SUI)
Wage base
$8,000
Contributions
0.20% to 6.80% and include a 0.06% employment security assessment.
New employers should use a rate of 2.7%.
More information
Voluntary Contributions: Employers may not be able to make voluntary contributions to lower their SUI tax rate.
Penalties: Late filing of wage reports can result in penalties, including a fine.
Labor
Minimum wage
$7.25
Termination Pay
Alabama has no provisions regarding termination pay.
More information
No required breaks: There are no state laws requiring meal or rest breaks for adult employees. However, the FLSA requires that if breaks of up to 20 minutes are given, they must be paid.
“At-will” employment: Alabama is an “at-will” employment state, meaning an employer can terminate an employee for any reason, or no reason at all, as long as it’s not an illegal reason (e.g., discrimination).
New Hire Filing
Reporting deadline
Within 7 days of hiring, rehiring, or returning to work.
Reporting online
Reporting by mail
Alabama Department of Labor
New-Hire Clerk
649 Monroe Street, Room 3203
Montgomery, AL 36131
New hire reporting form
Form W-4
Child Support
Online payments
More information
Alabama Child Support Payment Center
P.O. Box 244015
Montgomery, AL 36124-4015
Other
New employer registration
Local taxes
There are local taxes in
Cities: Attalla, Auburn, Bear Creek, Bessemer, Birmingham, Brilliant, Fairfield, Gadsden, Glencoe, Goodwater, Guin, Haleyville, Hamilton, Leeds, Lynn, Midfield, Mosses, Opelika, Rainbow City, Red Bay, Shorter, Southside, Sulligent, and Tuskegee.
County: Macon County.
Reciprocal states
N/A
Disability insurance
N/A
Helpful links
Last Updated
09/09/2025
States
The information provided here should not be considered legal or accounting advice nor should it substitute for legal, accounting, and other professional advice. If you require legal or accounting advice, you should always consult your licensed attorney, accountant, or other professional to discuss the facts of your particular situation.
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