Alabama registration and tax info

What you need to do

• Add a new work address in Gusto for a different state, and;
• Hire an employee and assign them to that address.

Cost and timeline

Prices vary by state. You can see the cost, process, and how long it takes in step four below.

What the process looks like

1. You give us some basic business information.
2. Gusto and CorpNet will check your info.
3. Your registration is usually submitted within 3–5 business days.
4. Watch for mail with your tax account numbers and rates from the state. The state usually sends your tax account numbers and rates directly to you.
   
   • Heads up: If CorpNet does not enter some information into Gusto, they can show you how to do it yourself.

Third-Party Agent (TPA) authorization reminder

Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, CorpNet does not set this up, so you’ll have to do it yourself after registration. Work with CorpNet directly to see if they’ve set up TPA for any specific agency.

Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now. 

• If you're already on the state-specific registration article, scroll to see if there's an “Authorize Gusto” section below.

Prices vary by state. You can see the cost, process, and how long it takes in step four below.

1. Sign in to Gusto.
2. Click the Taxes & Compliance section and select Tax setup.
3. Under “[State name] Tax Setup”, click Have us register for you.
   • The state will only show up if you’ve added a company work address there and assigned an employee to it.
4. Look at the price, process, and how long it'll take.
   
   • We will not charge you until you send in your order.
5. Click Continue.
6. Answer a few questions to see if you're eligible.
   • We can only register for you if you do not already have a state account.
7. Click Save & continue.
8. Enter some company information (we'll fill in what we already know).
9. Click Save & continue.
10. Tell us who the responsible party is. This is the person in charge of the company’s tax matters and good standing. 
    • If you're a nonprofit and need help, check our FAQs below.
11. Click Save & continue.
12. Enter some state-specific operational information.
13. Click Save and continue.
14. Review all info carefully. Mistakes can delay things. 
    • Heads up: State and local agencies might add fees or take longer than expected. CorpNet will notify you if that happens.
15. Check the box to confirm your info is correct and agree to the Terms of Service.
16. Click Send registration order.
    • We’ll email you with order updates and add the cost to your next monthly bill.

Some reminders

• In most cases, you need to give Gusto third-party access (TPA) to your tax accounts.
  • Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.
    • If you're already on the state-specific registration article, scroll to see if there's an “Authorize Gusto” section below.
  • CorpNet may be able to help set up TPA for some state agencies. Work with them directly to see if they can help.
• Keep an eye on your mail for registration details (tax account numbers and rates).
  • Some states will send your tax account numbers and rates this way. CorpNet will tell you how you’ll get your tax account information.

When your order is complete, you’ll receive emails from both Gusto and CorpNet. They’ll detail the next steps, which include:

• Reviewing registration details
• Any other state-specific instructions

Before your order is done, use the link in the state registration email from Gusto to check your order's status.

You can also check the status in your Gusto account:

1. Sign in to Gusto.
2. Click the Taxes & Compliance section and select Tax setup.
3. Scroll to the state's section.
4. Click Check the status of your registration.

If your order is still in progress, you can cancel from your Gusto account:

1. Sign in to Gusto.
2. Click the Taxes & Compliance section and select Tax setup.
3. Scroll to the state's section.
4. Click Check the status of your registration.
5. On the right-side of the page, under “Changed your mind?”, click Cancel your order.
6. Let us know why you're canceling.
7. Click Cancel your order.

If you were already charged, you'll get a refund in a few business days.

If you canceled your order but would like to re-open it, contact CorpNet directly at (888) 449-2638. Or email them at [email protected].

Q: Can I run payroll before my registration is done?

A: Yes, you can usually run payroll before all state tax info is added in Gusto. You may be asked to enter tax rates and tax deposit frequencies, but can use temporary info.

Important reminders

• We cannot submit tax payments or filings until all tax account numbers are added.
• If you run payroll before finishing registration, you might get notices about late tax payments or filings. Any penalties are your responsibility.
• If you’re only registering for unemployment tax and do not have your rate yet, use the new employer rate for your state in Gusto until you get the correct one. Update the rate once you get it.

Q: Can I use Gusto to register in a new state without a Federal Employer Identification Number (FEIN)? What if my business is merging or being acquired?

A: No, you need a FEIN in Gusto to get registration help for state taxes.

If your business is merging or being acquired, CorpNet cannot help with registration. You'll need to work with a tax advisor and state agencies directly.

Q: Where can I find my tax information?

A: You can find your tax info in several places: 

• In Gusto: Click the Taxes & compliance section and select Tax setup, then scroll to state tax setup.
• In CorpNet: Create an account and sign in to see your info.
• In your state’s online portal: Find your account details there.
• By mail: Some agencies send tax info by mail. If that happens, CorpNet will let you know, and you'll need to enter this info in Gusto.

Gusto’s state tax registration service does not contain tax, legal, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer, HR expert, or accountant for specific guidance.

Q: What if I'm not liable for unemployment tax yet?

A: If you want CorpNet to start setting up an unemployment account number before you're liable, you can:

• Use today’s date as the first date the employee(s) in the new state will be paid. 
• Enter the start date of the quarter you expect to meet the liability threshold.
  • Check the state’s liability info in the Register on your own section (go to the SUI dropdown). If there’s no info, contact the state agency directly.

Q: Can CorpNet help if the responsible party is international without an ITIN or SSN?

A: CorpNet might be able to help. Contact them at [email protected] or 1(888) 449-2638.

Q: Why am I unable to enter 0% ownership for the responsible party or add a commercial owner?

A: Some states have a 1% minimum for the responsible party ownership percentage. These states include ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI.

You’ll need to place registration orders directly with CorpNet outside of Gusto or register directly with the agency.

Some states require an individual owner to be listed. If you’re a non-profit or unsure, contact CorpNet for help at [email protected] or 1(888) 449-2638.

Q: Does CorpNet help with giving Gusto third-party access (TPA) for tax payments?

A: In most cases, you need to give Gusto third-party access (TPA) to your tax accounts.

• Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.
  • If you're already on the state-specific registration article, scroll to see if there's an “Authorize Gusto” section below.
• CorpNet may be able to help set up TPA for some state agencies. Work with them directly to see if they can help.

Q: Does CorpNet help close state tax accounts?

A: No, you'll need to close the tax account yourself.

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

Employers must open a general employer tax account with the state before you 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 general tax account open, here’s how to get your withholding tax account number. After you've completed registration, it takes 3–5 days to receive your withholding account number. 

1. Go to the My Alabama Taxes help page to get the agency's instructions on how to register for select tax types.
   
   • 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).
2. Go to the main My Alabama Taxes (MAT) page.
3. Scroll to the "Businesses" tile and click Register a business/Obtain a new tax account number.  
4. Read the "Before you begin" information. 
5. Scroll down the page to Enter company ID information or select that you're an Existing taxpayer (you'll need to sign in to your account). 
6. Complete all remaining prompts, making sure to open a withholding account. 

If you have questions, contact the withholding tax department at (334) 242-1170, option 5. 

Enter the tax account information in Gusto

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

1. Click Taxes & compliance and select Tax setup.
2. Scroll to the "Alabama Tax Setup" headline and select Manage taxes.
3. Enter your withholding account number. It's usually a 9-digit number following a letter.
   • Ex: R123456789

If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates. 

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, we just suggest entering the new employer rate for your state in Gusto in the meantime. Update the rate once you receive it.

You'll want to register with the AL Department of Labor (DOL) as soon as you become liable. 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 Federal Unemployment Tax Act (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.

Make sure to give us the third-party access (TPA) we'll need to file and pay these taxes on your behalf.

Enter the tax account information in Gusto

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

1. Click Taxes & compliance 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.
   • You can always update your rate in Gusto.

If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.

*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 usually 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
• Leeds
• Macon (county)
• Midfield
• Mosses
• Notasulga
• Shorter
• Southside
• Sulligent
• Tarrant
• Tuskegee

To register:

1. Go 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 “Occupational Tax Account Number”—Gusto needs this to file on your behalf.
   • If you have questions, call the agency directly at (205) 254-2198 or email them at [email protected].

Heads up: A company's taxes are usually paid 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, 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 employees, you can add your tax account information:

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

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 do not know your account number, call the agency at (334) 242-1584.

You can find your unemployment account number and rate by:

• Signing in to your eGov account (if you're not a new employer with the 2.7% initial rate).
• Reviewing Form UC-216F (tax rate notice) or;
• Reviewing Form UC-CR4 (Quarterly Contribution and Wage Report)

For questions about your account number, email [email protected]. Or call (334) 954-4730.

For questions about your rate, email [email protected]. Or call (334) 954-4741. 

Make sure to give us the third-party access (TPA) we'll need to file and pay these taxes on your behalf.

Important reminder

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 usually 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. 

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

1. Click Taxes & compliance and select Tax setup.
2. Scroll to the “Alabama Tax Setup” headline and select Manage taxes.
3. Enter your withholding account number. It's usually a 9-digit number following a letter.
   • Ex: R123456789
4. Enter your unemployment account number and agency-assigned unemployment rate. Do not include the Employment Security Assessment (ESA)* rate on the notice.
   • Use the rate in Box 6 of the "Tax Rate Notice" from the Alabama DOL. 
   • Learn how to update your rate here.

If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.

*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 usually 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 you to submit a notarized Power of Attorney (POA) form. You must do this before Gusto can file and pay your Alabama unemployment taxes.

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

1. Click Taxes & compliance and select Tax setup. 
2. Scroll to “Alabama Tax Setup” and click Manage Taxes.
3. Select the blue Edit pen next to “Submit DOL POA Form.”
4. Click on the pre-filled Power of Attorney (POA) form.
5. Print the pre-filled Power of Attorney (POA) form.
6. 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. 
   • Have your authorized signatory sign in the presence of a notary. They should 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.
7. 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

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

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