Alabama requires that you use Alabama form “A-4, Employee’s Withholding Exemption Certificate” instead of a Federal W-4 Form for Alabama State Income Tax Withholding. Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Alabama cafeteria plans: are not taxable for income tax calculation; are taxable for unemployment insurance purposes. 401(k) plan deferrals are: not taxable for income taxes; are not taxable for unemployment purposes.

In Alabama supplemental wages are taxed at a 5% flat rate. You may file your Alabama State W-2s by magnetic media if you choose to. The State of Alabama taxable wage base for unemployment purposes is wages up to $8000.00. Alabama requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter.

Unemployment records must be retained in Alabama for a minimum period of five years. There is no provision for minimum wage in the State of Alabama. There is also no general provision in Alabama State Law covering paying overtime in a non-FLSA covered employer. Alabama State new hire reporting requirements are that every employer must report every new hire, rehire and recall.

Alabama has no State Wage and Hour Law provisions concerning pay stub information. In Alabama there are no statutory requirements concerning pay frequency or the lag between when the lag time between when the services are performed and when the employee must be paid.

Nor for that matter does Alabama have legal provisions concerning when a terminated employee, voluntary or involuntary, must be paid. Deceased employee’s wages must be paid when normally due to the surviving spouse or custodian of minor children. Escheat laws in Alabama require that unclaimed wages be paid over to the state after one year.

There is no provision in Alabama law concerning record retention of abandoned wage records. There is no provision in Alabama law concerning tip credits against State minimum wage. In Alabama the payroll laws covering mandatory rest or meal breaks are only that: minors under 16 must have 30 minutes rest after five hours of work.

There is no provision in Alabama law concerning record retention of wage and hour records therefor it is probably wise to follow FLSA guidelines.