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Alabama registration and tax info

Updated

Before making payments to your employees, it's essential to ensure that you've completed the necessary registration for payroll within the specific state where they work. This registration process can occasionally be time-consuming, so the earlier you initiate it, the sooner you'll obtain the essential tax account information required to facilitate payments.

Niural collaborates with Middesk to assist you in the state registration process. For additional information, please explore the details provided below.

Let us register for you

Niural partners with Middesk to help you register your business in new states. 

How it works

Once you've added a workplace address in a new state and hired a new employee who has been assigned a work location in that state, Niural offers registration support.

The pricing is subject to change based on the state. During step 4, you'll have the opportunity to review the cost, process details, and an estimated timeline for completion.

Here's an overview of the procedure:

1. We will gather some basic information about your business.

2. Niural and Middesk will verify the accuracy of the information.

3. Typically, your registration application(s) will be submitted within 3-5 business days.

4. You will receive an email invitation from Niural to access your Middesk account. This invitation allows you to complete eligibility questions for the registration process and keep tabs on the status of your registrations.

5. Middesk can guide you through entering any data they don't handle on your behalf within Niural.

Initiate the state tax registration process

  1. Sign in to Niural as an employer.
  2. Navigate to the Company tab.
  3. Select Tax setup.
  4. Under “[State name] Tax Setup”, click Let Niural register for you.

Note: You can only choose to register in a new state once you've added a work address there and assigned an employee to that address.

  1. Examine the cost, procedure, and approximate time it will take to finish.
    • The registration service fee will only be charged after we receive your order.
  2. Answer a couple of eligibility questions.

Note: Niural can only register for you if you don't yet have a state account already.

  1. Enter some company information.
    • We’ll pre-populate the information that you have already provided.
  2. Provide details about your responsible party. This individual is accountable for the company's compliance and serves as the designated contact for tax-related matters within the organization.
  3. Review all the information provided, as any inaccuracies could potentially cause delays in the process.

Note: State and local agencies might impose extra charges and extend the estimated processing time. Middesk will inform you in case such situations arise.

  1. Check the box to acknowledge all info is accurate and you agree to the Terms of Service.
  2. Click Send registration order.

Once you submit your order, we will send you email updates regarding the status. The total cost of your order will be added to your upcoming monthly invoice.

Check the status of your order

Once your order is finalized, you will receive emails from both Niural and Middesk. These emails will outline the subsequent actions, including

1. Reviewing registration information.

2. Any additional state-specific instructions.

Before your order is finalized, you can use the link provided in the state registration confirmation email from Niural to track the progress of your order.

Cancel your order

If an order is already completed, you'll need to contact Middesk to cancel.

If an order is in progress you can email us at support@niural.com.

You'll be refunded, but processing can take a few business days. 

Handle your own registration for income, unemployment, and local taxes.

Register with the following agencies for tax-related purposes in Alabama:

  • Alabama Department of Revenue: For income tax withholding.
  • Alabama Department of Labor: For unemployment tax.
  • Local Alabama tax agencies: For various local taxes.

Register for an income tax withholding account

To obtain a withholding tax account number, you must first establish a general employer tax account with the state. This step is obligatory before proceeding to acquire a specific withholding tax account number. Follow these steps:

  1. Register online through the Alabama Department of Revenue.
  2. Navigate to the "Businesses" section.
  3. Select "Register a Business/Obtain a New Tax Account Number."
  4. Complete all subsequent steps provided by the agency. Feel free to reach out to the agency directly if you have any queries.

Once your tax account is active, here's how to obtain your withholding tax account number.

To obtain your withholding tax account number, follow these steps:

1. Register for the withholding account tax number through the Alabama Department of Revenue (AL DOR).

2. Review the information on the page and then click "Go to MAT" (My Alabama Taxes).

3. After registering online, you can expect to receive your account number in 3-5 days. If you choose to register by mail, you can call after 5 business days to potentially expedite the process and receive the number sooner.

4. If you need further assistance with the registration process, you can refer to this agency resource.

5. Access your tax account portal and submit a request to receive a withholding account.

(Note: "Go to MAT" refers to accessing the My Alabama Taxes portal.)

Enter the tax account information in Niural

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

  1. Click on Company 
  2. Click on Tax Setup 
  3. Click on Edit on the Alabama Tax Setup 
  4. Input your withholding account number, usually a 9-digit code preceded by a letter (e.g., R123456789).

If you need to modify your account number, reach out to us at support@niural.com. Keep in mind that there might be tax consequences if taxes have already been paid or filed under an incorrect account number.

State unemployment insurance tax (SUI) registration

Your company becomes responsible for state unemployment insurance tax once it meets either of these criteria:

1. Paid a total of $1,500 in wages during a specific calendar quarter.

2. Employed at least one Alabama-based employee for any part of the week, for 20 or more weeks within a calendar year.

Running payroll in Niural before you're liable for SUI

If you want to process payroll but don't meet the mentioned conditions, you can still do it with Niural. We recommend that you temporarily include the "New employer SUI tax rate" for Alabama until you meet the requirements.

  • You can find the updated rates for new employers in each state, as well as guidance on how to adjust the rate once you become responsible and receive your specific agency-assigned rate here.

Once you become responsible, it's important to register with the AL Department of Labor (DOL). In the future, Niural will require:

  • Unemployment account number.
  • Company-specific unemployment tax rate.

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

To get your Alabama Unemployment tax account number and rate, register online with the Department of Labor. You will need the following information to begin:

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

Upon registration, you will receive your unemployment account number instantly online. You will also obtain your company-specific unemployment tax rate.

Enter tax account information in Niural

After you've entered a valid work address in Niural for one or more employee(s) in Alabama, you can proceed to input your tax account information:

Initiate the state tax registration process

  • Sign in to Niural as an employer.
  • Navigate to the Company tab.
  • Select Tax setup.
  • Under “Alabama Tax Setup”, click Edit.
  • Enter the unemployment account number and assigned unemployment rate—do not include the Employment Security Assessment (ESA).
  • The rate that should be entered in Niural will appear in Box 6 of the "Tax Rate Notice" received from the Alabama Department of Labor.
  • If you need to update your account number: contact us at support@niural.com.

You can verify the account information by calling the agency at (334) 954-4741. 

*ESA—Employment Security Enhancement Assessment (ESA)

 

When using Niural, please avoid including the ESA rate as part of the rate you input.

 

For new employers, the ESA rate stands at 0%.

 

For businesses with a few years of operation, the typical rate is 0.06%.

 

If ESA is applied, you'll find it specified in Box 7 of the "Tax Rate Notice" sent by the Alabama Department of Labor. In Niural, only input the rate mentioned in Box 6.

 

Local tax registration

If you have tax dues in the mentioned places, you must register with 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

Here are the steps to register:

  1. Head to https://clientreports.revds.com/TaxpayerServiceCenter/TaxpayerRegistration.aspx.
  2. Request an "Authority Account Number". Niural will need this to file on your behalf.  
    • If you have questions, call the Avenu/RDS directly at (800) 556-7274.

Auburn tax account registration

For businesses situated in Auburn, obtaining an Auburn tax account number is mandatory. To do this:

  1. Download and complete a Business Registration Form.
  2. Mail the application.
  3. For inquiries, contact the City of Auburn at (334) 501-7226.

Birmingham Occupational Tax

All Birmingham employees must adhere to the Birmingham Occupational Tax. If your business operates in Birmingham, you must obtain a Birmingham tax account number by following these steps:

  1. Complete your registration here.
  2. Obtain an "Authority Account Number" for Niural to file on your behalf.
  3. For queries, contact the agency directly.

Note: The company's tax payment schedule is usually monthly unless a less frequent schedule is requested due to lower annual liability. To verify your tax deposit schedule, contact the City of Birmingham Tax & License Administration at (205) 254-2198.

Gadsden Customer Number

For businesses situated in Gadsden, obtaining a Gadsden Customer Number is necessary. Follow these steps:

1. Initiate the registration process here.

2. Download and complete a Business License Application.

3. Mail the application to acquire the Gadsden tax account number.

For more details, contact the City of Gadsden Revenue Department at (256) 549-4562.

Enter the tax account information in Niural

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

  1. Sign in to Niural as an employer.
  2. Navigate to the Company tab.
  3. Select Tax setup.
  4. Enter the account number.

 

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

  1. Click on the Company details section and select Documents. 
  2. Under tax documents, click on "Submit DOL POA Form.".
  3. Print the pre-filled Power of Attorney (POA) form.
  4. 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.
  5. After notarizing the POA:
    • Fax it to the Alabama DOL at (334) 956-7496. 
    • Mail it to Niural at the address below:

 

ATTN: Tax Ops - Audit Team, 

Niural, Inc

1209 Lakeside Ranch Rd, Georgetown, TX 78633

Phone number: 732325491
  1. Once you've faxed the notarized form to the agency, and mailed it to Niural, sign in to your Niural 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.

 Find your 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;
  • Form A-1 (The return of income tax withheld) 

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

Find your unemployment account number and rate

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 need clarification on your account number or rate, 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 Niural.
  • 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 Niural. 

Third-Party Authorization (TPA) and/or Power of Attorney (POA) is required

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

Notarize the pre-filled POA form in Niural 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 Niural at the address below:

      ATTN: Tax Ops - Audit Team, 

      Niural, Inc

      1209 Lakeside Ranch Rd, Georgetown, TX 78633

      Phone number: 732325491

      Once you've faxed the notarized form to the agency, and mailed it to Niural, sign in to your Niural 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.

Enter the tax account information in Niural

Once a valid Alabama address has been added in Niural 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 Niural will appear in Box 6 of the "Tax Rate Notice" received from the Alabama Department of Labor.
    • 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 Niural.
  • 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 Niural. 

Forms we file in Alabama

  • Alabama Quarterly W/H Return (AL A-1)
  • Alabama Annual W/H Reconciliation (AL A-3)
  • Alabama Department of Revenue Monthly Return (AL A-6)
  • Wage and Tax Statement (State W2)
  • AL New Hire Report
  • Alabama Quarterly Contribution (AL UC-CR4)
  • Various local returns

Where to find the forms available in your account

Head to the Taxes & compliance section and select Tax documents.

Use the tabs on the page to toggle between federal, state, W-2, and 1099 forms.

Asterisk info—only if applicable

Filings marked with an asterisk (*) will not appear in your Tax documents tab—these are coupons, payment vouchers, or other forms that are filed electronically.

 

Agency websites and contact info

Need to close or reopen a tax account? Head to our article on closing and reopening a state or local tax account. 

 

Disclaimer:
This article is not to be taken as tax, legal, benefits, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer or HR expert for specific guidance.



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