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Alabama

Alabama Payroll Tax & Labor Laws

Alabama Wage and Hour Laws

Minimum Wage

There is no state-mandated minimum wage law in Alabama. Covered employers in Alabama subject to the Fair Labor Standards Act must follow the federal minimum wage standard of $7.25 per hour. 

Overtime

There is no state-mandated overtime law in Alabama for private employers. Covered employers in Alabama must follow the federal overtime laws as prescribed in the Fair Labor Standards Act (FLSA). 

Pay Frequency 

There are no state-mandated standards related to frequency of pay periods. Covered employers in Alabama must follow the federal requirement that wages are due on the regular payday for the pay period covered. 

Alabama Unemployment

Taxable Wage Base ($000s): $8,000

Employee Tax Rate (% Taxable Wages): 2.7%

New Employer Rate (% Taxable Wages): None

Alabama Income Tax Withholding

Because Alabama and federal law vary in the number of exemptions permitted, employees must use the state form A4 and may not use the federal W-4 as a substitute. Get the Alabama State A4 Form HERE.

For more information on Alabama’s withholding rules, please click HERE.

Alabama Benefits

Alabama Voting Rights:

SurePayroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.

This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.

Revised: Jan 01, 2025

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