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Important Notices!

Individual & Corporate Income Tax

ADOR - Construction Employer Fee Requirements


Construction Employer Fee Requirements

Does not apply to or include licensed residential home builders unless performing work on any industrial or commercial project in Alabama.

Recognizing the need for a highly trained workforce in the building craft trades industry in Alabama with its expanding auto, steel, production, and energy industries, is particularly acute. Alabama, as well as America’s workforce is aging and there simply are not enough young people entering the craft trades. Recognizing the problem ahead, Alabama has partnered with the construction craft trade industry to change the image of the industry and to inform and train young people in the available careers in this industry who would otherwise never investigate the possibilities.

Approved by the Alabama Legislature during the 2009 Session, Act 2009-561 requires all licensed contractors performing work on any construction project or job located in the state of Alabama to remit a fee to the Alabama Department of Revenue to be used for the recruitment and training of new construction craft trade workers. The fee is levied upon the wages paid to construction workers for the performance of skilled labor under a construction contract or job located in Alabama.  

Skilled labor includes all labor or services performed by payroll workers directly engaged in construction operations at the location of any construction or maintenance jobsite in Alabama from the working foreman level down to laborer. The Fee does not apply to the wages of clerical, professional or supervisory employees above the working foreman level at any jobsite.    

File and Pay Construction Employer Fee

Click Here to File and Pay Construction Employer Fee


NAICS Code Lookup


Frequently Asked Questions

Does the Construction Employer Fee Apply To Me? Answer five quick questions to see if you are required to pay the construction employer fee


For questions and additional information, contact the Alabama Department of Revenue at (334) 242-1300.


Updated last: September 15, 2015