Register in Alabama

Alabama tax agencies

You will need to register with these agencies in order for Gusto to file and pay your state taxes.

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

Set up an existing company

Withholding Tax 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 return of income tax withheld (Form A-1). If you're unsure of your account number, you can call the agency at (334) 242-1584.

Unemployment Account Number: You can find your Unemployment Account Number on the Tax Rate Notice (Form UC-216F) or the Quarterly Contribution and Wage Report (Form UC-CR4). You can also call the agency at (334) 242-8830 to obtain the rate. Also, as you set up your Gusto account we will ask you to fill out a notarized Power of Attorney form and submit it to the Alabama Department of Labor to allow us to file and pay your taxes.

Tax Rate: Please do not include the ESA. The AL Tax Rate appears in Box 6 of the Tax Rate Notice received from the Alabama Dept. of Labor. The tax can range from 0.65%–6.8% and has a wage base of $8,000. If you're unsure, verify your rate by calling the agency at (334) 242-8830.

ESA: The Employment Security Enhancement Assessment (ESA) is usually 0.06%. It is included on Box 7 of the Tax Rate Notice received from the Alabama Dept. of Labor. Please be sure to exclude this number from the Tax Rate.

Register a new company

Alabama Department of Revenue

Before your register for a Withholding Tax Account number, you need to be registered as an employer with the Alabama Department of Revenue. You will need to open a tax account with the state.  This is a mandatory prerequisite for any employer to obtain a Withholding Tax Account number:

  1. You can go register for this online with the Alabama Department of Revenue.
  2. Click on I want to... Obtain a New Tax Account Number. This will be on the left hand side of the page.

Once you have a tax account open follow the steps below to get your Withholding Tax Account number:

  1. New employers in Alabama can register for a Withholding Account online with the Alabama Department of Revenue.
  2. Once on this page, you'll want to read the instructions and then click the link that says Click here to register online.
  3. Sign in to your tax account and request to receive a Withholding Account.

You should receive your account number by mail in several weeks, or call after 3-5 days from registering to receive it sooner. 

Alabama Department of Labor

Once you have paid $1500 in wages during a calendar quarter or had at least one employee on some day in 20 or more different weeks during a calendar year you will become liable for state unemployment tax. Please register online with the Department of Labor to obtain your Alabama Unemployment tax account. 

  • 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 have registered, you will receive your Unemployment Account Number instantly online.

Tax Rate: When inputting your tax rate, please do not include the ESA Rate. New employers need to register with the AL Department of Labor in order to get their new employer rate.Your AL Tax Rate appears in Box 6 of the Tax Rate Notice received from the Alabama Department of Labor. Complete the employer registration process to get their new employer rate, which is generally 2.7% and has a wage base of $8,000. If you're unsure, verify your rate by calling the agency at (334) 242-8830. 

ESA: The Employment Security Enhancement Assessment (ESA) is usually 0.06%, but the rate is 0.0% for new employers. It is included on Box 7 of the Tax Rate Notice received from the Alabama Dept. of Labor. Please be sure to exclude this number from the Tax Rate.

As you set up your Gusto account we will also ask you to fill out a notarized Power of Attorney form and submit it to the Alabama Department of Labor. 

Local Alabama tax agencies

Alabama Revenue Discovery Systems

The RDS is a payee for local taxes in the following cities: Attalla, Beaverton, Fort Deposit, Guin, Haleyville, Hamilton, Macon (county), Midfield, Mosses, Notasulga, Shorter, Southside, Sulligent, Tarrant and Tuskegee.

If you don't have an account number yet, you can register here. You will want to file for an "authority account number" on step 5. For more information you can call RDS at (800) 556-7274.

Gadsden Customer Number

If your business is located in Gadsden, you will be required to obtain a Gadsden Customer Number. If you do not already have one, you can register here. You will download a Business License Application and submit the application by mail to get the number. For additional information you can call the City of Gadsden Revenue Department at (256) 549-4559.

Birmingham Tax Account Number

If your business is located in Birmingham, you will be required to obtain a Birmingham Tax Account Number. If you do not have an account number, you can register here. You'll want to download an Application for Tax Certificate and submit the application by mail. If you have any questions, you can call the City of Birmingham Tax & License Administration at (205) 254-2198.

Birmingham Occupational Tax Schedule

Employees who work in Birmingham AL are subject to the Birmingham Occupational Tax. This schedule is typically monthly unless the employer has a lower annual liability and has request a different schedule. You can confirm your schedule by calling the City of Birmingham Tax & License Administration at (205) 254-2198. 

Auburn Customer Customer Number

If your business is located in Auburn, you will be required to obtain a Auburn Tax Account Number. If you do not have an account number, you can register here. You will download a Business Registration Form and submit the application by mail. If you have any questions, you can call the City of Auburn at (334) 501-7226.

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