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  • I have an active withholding tax account, but currently don’t have any employees. Do I need to file monthly or quarterly returns?
View All Withholding Tax FAQs

I have an active withholding tax account, but currently don’t have any employees. Do I need to file monthly or quarterly returns?

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.

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.

Related FAQs in Withholding Tax

Overpayments may be taken as a credit on Line 5 of your next withholding tax return. The return on which a credit is claimed must be accompanied by a brief explanation of where the overpayment occurred in order for the Department to verify the overpayment. If filing electronically, please complete the credit claimed information before submitting your return. If a refund is preferred, Form IT:RE-2WH Application for Refund of Income Tax Withholding can be obtained by submitting a written request to the Department. The written request may be sent in MAT under “I Want To” then “Ask A Question”. Original IT:RE-2WH forms are required and photocopies will not be accepted. Refunds generally take anywhere from 10 to 12 weeks.

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 January 31 of the following year.

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.

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.

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.

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.

Contact the Withholding Tax Section at (334) 242-1300 or your local Taxpayer Service Center. Please include the following information: employer’s name, address, phone number and number of employees.