Alabama registration and tax info

• Alabama Department of Revenue - income tax withholding
• Alabama Department of Labor - unemployment tax
• Local Alabama tax agencies - various

First, you must open a general employer tax account with the state— this is a mandatory prerequisite before any employer can get a withholding-specific tax account number. 

1. Register online with the Alabama Department of Revenue.
2. Scroll to the “Businesses” tile. 
3. Click Register a business/Obtain a New Tax Account Number. 
4. Complete all remaining steps with the agency—if you have questions, contact the agency directly.

Once you have a tax account open, here’s how to get your withholding tax account number.

1. Register for the withholding account tax number with the AL DOR.
2. Read the information on the page and then click Go to MAT.
   • Once registered online, it takes 3-5 days to receive an account number. If you chose to register by mail, you’ll get your account number in several weeks (you can call after 5 business days to receive it sooner).
   • Want more help with registering? Check out this agency resource. 
3. Sign in to your tax account portal.
4. Request to receive a withholding account.

Enter the tax account information in Gusto

Once a valid Alabama work address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Alabama Tax Setup" headline and select Manage taxes.
3. Enter your withholding account number—this is typically a 9-digit number following a letter.
   • Ex: R123456789
   • If you need to update your account number: contact us from the Help or Priority support section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.

Your company becomes liable for state unemployment insurance tax once the company has:

• Paid $1500 in wages during a calendar quarter or;
• Had at least one Alabama-employee working for any part of the week, for 20 or more different weeks during a calendar year.

Running payroll in Gusto before you're liable for SUI

If you need to run payroll and do not yet meet the above requirements, Gusto allows it—we just suggest you add the "New employer SUI tax rate" specific to Alabama in the meantime.

• You can find the new employer rates for each state in this article, along with instructions on how to update the rate once you become liable and receive your company-specific agency assigned rate.

You'll want to register with the AL Department of Labor (DOL) as soon as you become liable—eventually, Gusto will need:

• Your unemployment account number—required to file and pay taxes on your behalf.
• Your company-specific unemployment tax rate—assigned by the agency.

Register for unemployment tax with the AL Department of Labor (DOL) 

Register online with the Department of Labor to obtain your Alabama Unemployment tax account number and rate. You'll need the information below to get started:

• Federal Employer ID Number (FEIN)
• Date Alabama Operations Began
• Date of FUTA Liability
• Quarterly Wages Paid in Alabama
• Number of Employees in Each Week of the Quarter
• Name, Title, SSN of Owner/Partner/Corporate Officer

Once you've registered, you'll receive your unemployment account number instantly online. You'll also be given your company-specific unemployment tax rate.

Enter the tax account information in Gusto

Once a valid Alabama work address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Alabama Tax Setup" headline and select Manage taxes.
3. Enter your unemployment account number and agency-assigned unemployment rate—do not include the Employment Security Assessment (ESA)* rate on the notice. 
   • The rate that should be entered in Gusto will appear in Box 6 of the "Tax Rate Notice" received from the Alabama Department of Labor.
     • If you need to update your rate: follow these steps. 
   • If you need to update your account number: contact us from the Help or Priority support section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.

If you're unsure of your account number or rate, verify by calling the agency at (334) 954-4741. 

*ESA—Employment Security Enhancement Assessment (ESA)

• Do not enter the ESA rate as part of your rate in Gusto.
• For new employers, the ESA rate is 0%.
• For employers who have been in business for a few years the rate is typically 0.06%.
  • If ESA is assessed, it'll be included in Box 7 of the "Tax Rate Notice" received from the Alabama Dept. of Labor—only enter the rate from Box 6 in Gusto. 

If you owe taxes in one of the following locations, you'll need to register with the Alabama Avenu Insights/Revenue Discovery Systems (RDS):

• Attalla
• Beaverton
• Birmingham
• Fort Deposit
• Guin
• Haleyville
• Hamilton
• Macon (county)
• Midfield
• Mosses
• Notasulga
• Shorter
• Southside
• Sulligent
• Tarrant
• Tuskegee

To register:

1. Head to the Alabama Avenu Insights/Revenue Discovery Systems (RDS) to register.
2. You'll need to request an "Authority Account Number"—Gusto needs this to file on your behalf.  
   • If you have questions, call the Avenu/RDS directly at (800) 556-7274.

Auburn tax account registration

If your business is located in Auburn, you're required to get an Auburn tax account number. To do so:

1. Download a Business Registration Form and fill it out.
2. Submit the application by mail.
   • If you have questions, call the City of Auburn directly at (334) 501-7226.

Birmingham Occupational Tax

All employees who work in Birmingham are subject to the Birmingham Occupational Tax.

If your business is located in Birmingham, you're required to get a Birmingham tax account number. To do so:

1. Register here.
2. You'll need to request an "Authority Account Number"—Gusto needs this to file on your behalf.
   • If you have questions, call the agency directly.

Heads up: The company's tax payment schedule is typically monthly, unless the company has a lower annual liability and has requested a less frequent schedule. You can confirm your tax deposit schedule by calling the City of Birmingham Tax & License Administration at (205) 254-2198.  

Gadsden Customer Number

If your business is located in Gadsden, you're required to get a Gadsden Customer Number. To do so:

1. Start the registration here.
2. You'll need to download a Business License Application and fill it out.
3. Submit the application by mail to get the Gadsden tax account number.
   • For additional information, you can call the City of Gadsden Revenue Department at (256) 549-4562.

Enter the tax account information in Gusto

Once a valid local address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Alabama Tax Setup" headline and select Manage taxes.
3. Enter the applicable account number.

The Alabama Department of Labor (DOL) requires that you submit a notarized Power of Attorney (POA) form before Gusto can file and pay your Alabama unemployment tax. 

Notarize the pre-filled POA form in Gusto by following these steps:

1. Click on the Taxes & compliance section and select Tax setup. 
2. Scroll to "Alabama Tax Setup." 
3. Click Manage Taxes under "Alabama Tax Setup".
4. Select the blue Edit pen next to "Submit DOL POA Form."
5. Click on the pre-filled Power of Attorney (POA) form.
6. Print the pre-filled Power of Attorney (POA) form.
7. Complete the pre-filled form by:
   • Only marking the "Tax (Limited)" box.
   • Entering your signatory's printed name on the line that says: "...the said_____________ has caused this instrument to...."
   • In the signature date lines:
     • Enter first the day of the month;
     • Then the month;
     • Then the year of the signature. 
   • In the presence of a notary, have your authorized signatory sign on the "Duly Qualified Officer" line. 
     • Your signatory must include their valid title on the "Title" line. Valid titles include:
       • Owner
       • Officer
       • Partner
       • President
       • Vice president
     • The notary should place their notary seal in the designated space. 
     • The notary should sign on the "Notary Public" line.
8. After notarizing the POA:
   • Fax it to the Alabama DOL at (334) 956-7496. 
   • Mail it to Gusto at the address below:

     • ATTN: Tax Ops - Audit Team,  Gusto,  1201 16th Street, Suite 350,  Denver, CO 80202

9. Once you've faxed the notarized form to the agency, and mailed it to Gusto, sign in to your Gusto profile and select Yes, I have submitted the notarized form.

If you have questions about completing the form, call the agency at (334) 954-4741 or (800) 548-2546.

If you've run payroll in Alabama in the past, you can find your withholding tax account number on:

• Withholding tax coupons or;
• Form A-1 (The return of income tax withheld) 

If you're unsure of your account number, call the agency at (334) 242-1584.

You can find your unemployment account number and rate on:

• Form UC-216F (tax rate notice) or;
• Form UC-CR4 (Quarterly Contribution and Wage Report)

If you're unsure what your account number or rate is, call the agency at (334) 242-8830. 

Important

Do not include the Employment Security Assessment (ESA)* rate on the notice—enter the rate from Box 6 of the "Tax Rate Notice" received from the Alabama Department of Labor.

*ESA—Employment Security Enhancement Assessment (ESA)

• Do not enter the ESA rate as part of your rate in Gusto.
• For new employers, the ESA rate is 0%.
• For employers who have been in business for a few years the rate is typically 0.06%.
  • If ESA is assessed, it'll be included in Box 7 of the "Tax Rate Notice" received from the Alabama Dept. of Labor—only enter the rate from Box 6 in Gusto. 

The Alabama Department of Labor (DOL) requires that you submit a notarized Power of Attorney (POA) form before Gusto can file and pay your Alabama unemployment tax. 

Notarize the pre-filled POA form in Gusto by following these steps:

1. Click on the Taxes & compliance section and select Tax setup. 
2. Scroll to "Alabama Tax Setup." 
3. Click Manage Taxes under "Alabama Tax Setup".
4. Select the blue Edit pen next to "Submit DOL POA Form."
5. Click on the pre-filled Power of Attorney (POA) form.
6. Print the pre-filled Power of Attorney (POA) form.
7. Complete the pre-filled form by:
   • Only marking the "Tax (Limited)" box.
   • Entering your signatory's printed name on the line that says: "...the said_____________ has caused this instrument to...."
   • In the signature date lines:
     • Enter first the day of the month;
     • Then the month;
     • Then the year of the signature. 
   • In the presence of a notary, have your authorized signatory sign on the "Duly Qualified Officer" line. 
     • Your signatory must include their valid title on the "Title" line. Valid titles include:
       • Owner
       • Officer
       • Partner
       • President
       • Vice president
     • The notary should place their notary seal in the designated space. 
     • The notary should sign on the "Notary Public" line.
8. After notarizing the POA:
   • Fax it to the Alabama DOL at (334) 956-7496. 
   • Mail it to Gusto at the address below:

     • ATTN: Tax Ops - Audit Team,  Gusto,  1201 16th Street, Suite 350,  Denver, CO 80202

9. Once you've faxed the notarized form to the agency, and mailed it to Gusto, sign in to your Gusto profile and select Yes, I have submitted the notarized form.

If you have questions about completing the form, call the agency at (334) 954-4741 or (800) 548-2546.

Once a valid Alabama address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Alabama Tax Setup" headline and select Manage taxes.
3. Enter your withholding account number—this is typically a 9-digit number following a letter.
   • Ex: R123456789
   • If you need to update your account number: contact us from the Help or Priority support section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.
4. Enter your unemployment account number and agency-assigned unemployment rate—do not include the Employment Security Assessment (ESA)* rate on the notice.
   • The rate that should be entered in Gusto will appear in Box 6 of the "Tax Rate Notice" received from the Alabama Department of Labor.
     • If you need to update your rate: follow these steps.
   • If you need to update your account number: contact us from the Help or Priority support section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.

*ESA—Employment Security Enhancement Assessment (ESA)

• Do not enter the ESA rate as part of your rate in Gusto.
• For new employers, the ESA rate is 0%.
• For employers who have been in business for a few years the rate is typically 0.06%.
  • If ESA is assessed, it'll be included in Box 7 of the "Tax Rate Notice" received from the Alabama Dept. of Labor—only enter the rate from Box 6 in Gusto.