Alabama Payroll

Alabama Payroll Taxes and Payroll Penalties

Processing payroll in Alabama? If you own a small business in Alabama, you are responsible for computing, withholding, and remitting Alabama withholding tax. Here's what you need to know about Alabama payroll taxes.

Alabama payroll? We've got the information you need to know about Alabama's payroll taxes. Read on to learn more.

Information on Alabama Payroll Taxes

Alabama, like most states, imposes a state tax on personal income. As a result, if you employ workers in Alabama, you are responsible for Alabama state withholding tax.

Some employment types are exempt from Alabama withholding tax. Alabama withholding tax exemptions include, for example, merchant seamen, agricultural and domestic employees, and duly ordained ministers.

It does not matter which state your employees live in. Any wages earned by a resident or a non-resident while working in Alabama are subject to Alabama state payroll withholding taxes.

Alabama Payroll Penalties

The penalty for late filing of an Alabama withholding tax return is 10% of the tax due or $50.00, whichever is greater. The penalty for late payment of withholding tax is 10% of the payroll taxes due. If the return and payment are delinquent, the two penalties will be added together. In addition to payroll penalties, you will be charged interest. Interest due is computed at the rate applicable to federal tax deficiencies and is subject to change.

Main Agency Responsible for Alabama Payroll Taxes

Alabama Department of Revenue
Individual & Corporate Tax Division
Withholding Tax Section
Gordon Persons Building, Room 4326
50 North Ripley St.
Montgomery, AL 36104

Alabama Taxpayer Service Centers

Physical Addresses for Alabama Tax Service Centers

3300 Skyway Drive
Auburn, AL 36830
Phone -- (334) 887-9549

2020 Valleydale Road, Suite 208
Hoover, AL 35244
Phone -- (205) 733-2740

DOTHAN Service Center
344 North Oates St.
Dothan, AL 36303
Phone -- (334) 793-5803

GADSDEN Service Center
235 College Street
Gadsden, AL 35901
Phone -- (256) 547-0554

HUNTSVILLE Service Center
994 Explorer Boulevard
Huntsville, AL 35807
Phone -- (256) 922-1082

MOBILE Service Center
955 Downtowner Blvd
Mobile, AL 36609
Phone -- (251) 344-4737

MONTGOMERY Service Center
1021 Madison Avenue
Montgomery, AL 36104
Phone -- (334) 242-2677

MUSCLE SHOALS Service Center
874 Reservation Road
Muscle Shoals, AL 35662
Phone -- (256) 383-4631

TUSCALOOSA Service Center
518 19th Avenue
Tuscaloosa, AL 35401
Phone -- (205) 759-2571

Mailing Addresses for Alabama Tax Service Centers

PO Box 2929
Auburn, AL 36831- 2929

P.O. Box 1927
Pelham, AL 35124

DOTHAN Service Center
PO Box 5739
Dothan, AL 36302-5739

GADSDEN Service Center
PO Drawer 1190
Gadsden, AL 35902-1190

HUNTSVILLE Service Center
PO Box 11487
Huntsville, AL 35814-1487

MOBILE Service Center
PO Box 160406
Mobile, AL 36616-1406

MONTGOMERY Service Center
PO Box 327490
Montgomery, AL 36132-7490

MUSCLE SHOALS Service Center
PO Box 3148
Muscle Shoals, AL 35662-3148

TUSCALOOSA Service Center
PO Box 2467
Tuscaloosa, AL 35403-2467

Alabama Payroll Services

Given the complexity of filing Alabama payroll taxes, it's a good idea to outsource your payroll processing. We can help you find a good Alabama payroll service.

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