Alabama’s Unemployment law

April 2nd, 2006 Posted by John

Today I wanted to drop a couple lines about certain aspects of Alabama’s unemployment insurance and it’s employer contributions through taxes.

First, you must file quarterly reports with the Alabama State Government. This report is generated and made specifically for each business. You may not use your own payroll activity forms, or any other computer generated forms. You must use Alabama’s quarterly report forms they will provide.

Contribution and wage reports are due on the last day of the month following the end of the quarter. So due dates for each quarters would be as follows: January 31, April 30, July 31, and October 31.

Employer’s in Alabama are taxed for the first $8,000 they pay an employee each year. The taxes range from 0.20% to 6.80% based on four factors all relating to the unemployment claims from the company and other information. So in essence, those employers who have less employee’s severed or quitting for Unemployment Qualified reasons, will pay less than employer’s who have a lot of employee’s who have quit or otherwise severed from employment and are eligible for unemployment insurance protection.

All new employer’s can register as employer’s who have a liability in unemployment taxes (See below*), by filling out Form SR-2 available from the state of Alabama.

* Employer’s who are liable for unemployment tax contributions are any employer who employs one or more employee’s and has paid them $1500.00 or more during a period of twenty days. Note that this may not apply to farm workers, the self employed or those who work on commission. Also note that the twenty days do not have to be consecutive.

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Posted in Alabama, Alabama, Compliance Issues, Unemployment Laws

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