The Alabama Department of Revenue now offers an electronic service for filing and remitting withholding tax. The Alabama Paperless Tax Filing and Payment Progam is a FREE service. This program is an Internet-based and telephone system developed to provide taxpayers with the capability of filing withholding tax returns and initiating payment of taxes from a personal computer or telephone.
To learn more about this service and how to file and pay electronically, visit our Web Site at http://revenue.alabama.gov/Withholding/efiling.html and follow the instructions. If you are unable to access your account via the Internet, you may use the Department's telephone filing system by calling 1-800-828-1727. In order to access the new program via the Internet or telephone, you will need your Sign ON ID and Access Code provided by the Department.
You will need to file a zero quarterly return in order to avoid receiving a delinquent notice for failure to file. You will not need to file a zero monthly report. If you do not plan on hiring any employees in the near future, you may file Form A-1 and mark the return as Final on line 1 to place your account on inactive status. This will eliminate the need to file the zero returns. You may also inactivate or reactivate the account at a later time by calling the Withholding Tax Section at (334) 242-1300.
If you have questions concerning your individual income tax refund, call the Refund Hotline at 1-800-558-3912 or visit our Online Refund Status page for more information. The Withholding Tax Section does not handle individual income tax.
The Withholding Tax Section handles a large volume of checks. The only way to know if a check has been received is when the check has cleared your bank. If you use the preprinted coupon book provided by the Department, your check will be processed immediately. All other forms must be checked for accuracy and take longer to process.
The State of Alabama recognizes the following Federal Code Sections: Section 125 Cafeteria Plan, Section 401K, and Section 403B. For information on other exclusion from gross income, please see page 1 of the Withholding Tax Tables and Instructions for Employers.
Domestic help in the home is exempt from the withholding tax regulations. Also exempt from withholding tax are merchant seaman, duly ordained ministers, and agricultural employees. For more information on these classes of exemption, please see page 1 of the Withholding Tax Tables and Instructions for Employers.
If your federal identification number changes, you will need to apply for a new state withholding tax account number by filing the Combined Registration/Application available online.
As a sole proprietor you do not need to apply for another withholding tax number for opening another business unless that business is operating under a different federal identification number than the sole proprietor. A sole proprietor will file all his business withholding under one state number.
One penalty is for the late filing of the withholding tax return and the other penalty is for late payment of the withholding tax. Please see the billing code explanation enclosed with your letter.
Truck drivers that operate in two or more states will fall under the jurisdiction of the Amtrak Reauthorization Act (Public Law 101-322) and will be taxed on their state of residency.
Severance pay exemption of up to $25,000.00 is available upon approval from the Department. For additional information concerning the severance pay exemption please visit the following link: http://revenue.alabama.gov/incometax/esp.html
An electronic check will appear when a return is filed electronically that shows an amount of tax due. The banking information can be changed by entering the new banking information over the current banking information on the electronic check.