Alabama Payroll Instructions

For more about Goldenseal payroll accounting software, click here.
For more about US Federal withholding in the Goldenseal payroll software, click here.

Alabama has state income tax withholding, using three payroll tax tables (O, S and M). Rates did not change in 2005 (they have only changed once in the past 15 years).

HINT-- Turtle Creek Software provides free updates for Alabama and federal payroll tax tables. To download the latest version, click here.

State Withholding Instructions

To enter withholding information for an employee, follow these steps:

1. Choose Employees from the Accounts menu.
2. Locate the employee record.
3. Enter the employee's marital status into the Marital Status field.
4. Enter the number of federal dependents into the Federal Exemptions field.
5. Enter the number of Alabama dependents into the State Exemptions field.
6. If an employee uses the zero deduction table (O table), enter the Zero Deduction tax package into the Tax Package field. Otherwise enter the standard tax package.

Alabama State Unemployment Tax Instructions

Alabama state unemployment tax is paid on the first $8,000 of each employees annual wages. In 2005 the rate for new businesses is 2.70%, followed by a variable rate that depends on payroll volume and unemployment claims by employees.

To enter your Alabama state SUTA tax rate into the Goldenseal payroll software, follow these steps:

1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
2. You'll see a list of Tax Items. Locate the Alabama SUTA tax in the list, and double-click on it. HINT: If you don't see SUTA in the list, you'll need to import Alabama payroll info first.
3. Enter the percentage rate that you pay into the percentage field to the right of Calculation method.
4. If the cutoff amount has changed, enter it into the dollar field to the right of the First Adjustment field.

Marital Status

Use the following to determine the value for the Marital Status popup menu in each Employee account:

• Single- single employee with one personal exemption (S table)
• Married- married employee with two personal exemptions (M table)
• Dual Income- married employee with one personal exemption (S table)
• Head of House- employee claims Head of Family status
• Other- not used

NOTE: An additional deduction of Annual Federal tax withheld is already factored into the Alabama state withholding calculation.

Contacts

Payroll Tax Office-- 334 242-1000
Withholding Info-- 334 242-1300
SUTA-- 334 242-8467 or 334 242-8055
Worker's Comp-- 334 242-2868

Alabama Dept of Revenue-- Income Tax Division
Box 327460
Montgomery AL 36132-7460

Department of Industrial Relations (SUTA)
649 Monroe Street
Montgomery, AL 36131

Official State Lawn Ornament

Plastic flamingo wearing football helmet on veranda with mint julep.

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