Saturday, August 18, 2012

Payroll Alabama, Unique Aspects of the law and practice of Payroll Alabama

The National Agency of Alabama, who oversees the collection and reporting of income taxes deducted from state payroll checks is:
Department of Revenue

Income Tax Division

Section Withholding

50 North Ripley St.

P. O. Box 327480

Montgomery, Alabama 36132-7480

334-242-1300

www.ador.state.al.us / withdrawal / index.html

Alabama requires that you use Alabama form "A-4, the certificate of exemption from withholding the employee" instead of a Federal W-4 Form for Alabama State Withholding income tax.

All states allow salary reductions made under Section 125 cafeteria plan or 401 (k) to be treated the same way as the IRS code allows. In Alabama cafeteria plans: are not taxable for the calculation of income tax, are taxable for unemployment insurance. Plans Reports 401 (k) are: not taxable for income taxes, are not taxable for unemployment purposes.

In Alabama supplemental wages are taxed at a rate of 5% flat.

You can file your Alabama State W-2s by magnetic media if you wish.

The Alabama State Unemployment Insurance Agency is:

The Department of Industrial Relations

649 Monroe Street

Montgomery, Alabama 36131

334-242-8990

www.dir.state.al.us/

The State of the base salary of Alabama taxable for unemployment purposes is wages up to $ 8000.00.

Alabama requires Magnetic media reporting of quarterly wages if the employer has at least 250 employees to report this quarter.

Unemployment records must be retained in Alabama for a minimum period of five years. This information generally includes: name, social security number, dates of hire, rehire and termination, wages, whichever; pay periods wages and pay dates, the date and circumstances of termination.

The National Agency of Alabama charged with enforcing the state wage and hour laws is:

The Department of Industrial Relations

649 Monroe Street

Montgomery, Alabama 36131

334-242-8990

www.dir.state.al.us/

There is no provision for minimum wage in the State of Alabama.

There is also no general provision of the Alabama State Law covering paying overtime in a non-FLSA covered employer.

Alabama State new hire reporting requirements are that every employer must report every new hire, rehire and recall. The employer must report the information needed by the federal government:

Name of employee
Employee Address
The employee social security number
Name of Employer
Address employers
Federal employer identification number of employer (EIN)

This information must be reported within 7 days of the hiring or rehiring.

Information can be sent as a W4 or equivalent by mail, fax or electronically.

There is a penalty of $ 25.00 for a report at the end of Alabama.

The rental of Alabama new reporting system can be reached at 334-353-8491 or on the Web at www.dir.state.al.us / nh.htm.

Alabama does allow compulsory direct deposit but the employee's choice of financial institution must meet federal Regulation E regarding choice of financial institutions.

Alabama has no state wages and provisions of the law concerning pay stub information Hour.

In Alabama there are no legal requirements concerning the frequency of earnings or the difference between the point where the latency between when the services are rendered and when the employee must be paid.

Nor indeed does Alabama have legal provisions concerning when a terminated employee, voluntary or involuntary, must be paid.

The wages of the deceased must be paid when normally due to the surviving spouse or custodian of minor children.

Escheat laws in Alabama requiring that unclaimed wages be paid to the state after one year.

There is no provision in the law concerning record retention of wage records Alabama abandoned.

There is no provision in the law concerning tip credits against Alabama State minimum wage.

Alabama social laws covering mandatory rest or meal breaks are only that: minors under 16 must have 30 minutes rest after five hours.

There is no provision in the law concerning record retention of wage and Alabama hour records therefor it is probably wise to follow FLSA guidelines.

The agency responsible for enforcing the Alabama Child Support Orders and laws is:

Alabama Department of Human Resources

Enforcement Division Child Support

50 Ripley St.

Montgomery, AL 36130-1801

334-242-9300

www.dhr.state.al.us / CSED / default.asp

Alabama has the following provisions for child support deductions:

When to start at the source? Immediately after receipt of order.

When to send Payment? Within 7 days of wages.
When to send notice of termination? Within 7 days of termination.
Maximum administration fee? $ 2 per month.
Limits deductions? Federal Rules under the CCPA.

Please note that this article is not updated for changes that may occur and from time to time.

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