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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 job site 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 job site.

Does the Construction Employer Fee apply to you?

If you answer ALL of these questions YES, you ARE REQUIRED to file and pay.
If you answer ANY of the following questions NO, you ARE NOT REQUIRED to file or pay.

  1. Are you a licensed contractor in Alabama?
  2. Do you have any payroll employees?
  3. Are these employees on any construction or maintenance project or job in Alabama?
  4. Is the construction or maintenance project or job onsite construction not including single family residential?
  5. Are any of these employees who are working onsite at the working foreman level or below?

File and Pay Construction Employer Fee

Resources

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