The Alabama Department of Revenue offers a FREE electronic service, My Alabama Taxes (MAT), for filing and remitting withholding tax. MAT is an online filing system developed to allow taxpayers to file and pay their withholding tax electronically. Please visit our Web Site at http://www.revenue.alabama.gov/Withholding/efiling.cfm .
If you are unable to access your account via the Internet, please contact the Department at (334) 242-1300. In order to access your account via My Alabama Taxes (MAT), you will need your withholding tax account number and Sign ON ID and Access Code provided by the Department to sign up in MAT.
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, visit our My Alabama Taxes (MAT) for more information. The Withholding Tax Section does not handle individual income tax.
Please view your account online through My Alabama Taxes (MAT) to verify receipt of payment. Since checks take longer to process the Department encourages employers to electronically file and pay. Payments of $750 or more are required to be filed and paid electronically.
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 2 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.
Yes, the chief classes of exempt employment are domestic services in private homes, merchant seamen, duly ordained ministers performing duties of their ministry, and agricultural employees. Although these wages are exempt from withholding tax requirements, the wages do represent taxable income and should be reported by the employee on their individual income tax return. Employers should provide both the employee and the Department with a copy of Form W2 reflecting the wages earned by the employee for that year. . For more information on these classes of exemption, please see page 2 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.
Yes, if your business entity type changed, you will need to apply for a new state withholding tax account number by filing the Combined Registration/Application.
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.cfm
Banking information can be managed through the â€œMy Profileâ€� link in My Alabama Taxes (MAT).
No, however, those electing to voluntarily withhold tax must register for a withholding tax account number with the Department and remit the tax withheld. Forms 1099 reflecting Alabama income tax withheld along with Forms W2 must be submitted with the Form A3 Annual Reconciliation on or before February 28th of the following year.