Businesses With Employees

Requirements

• Contact the Internal Revenue Service (IRS) in order to determine if federal withholding requirements apply (see previous).
• To Register for a withholding tax account number, please contact the Alabama Department of Revenue and request Form COM-101 (Combined Registration Form), A-4s (Alabama Exemption Certificates), and Alabama Withholding Tax Tables. These forms and tables can be obtained online or by contacting the Central Registration Unit: 334-242-1170.
• Contact the Alabama Department of Labor to obtain requirements for:
  • Worker's Compensation Insurance at 334-242-2868 or 800-528-5166
  • State Unemployment Compensation Tax at 334-242-8830
• Contact the City of Opelika Revenue Department at 334-705-5160 for city occupational tax withholding forms. The City Occupational License Fee is 1.5% withholding of all wage earners who work within the City of Opelika. Form 0-1 (Quarterly Return) and Form 0-3 (Year End reconciliation) must be completed.
• All employees must complete Form A-4 (State) and Form W-4 (Federal). These must be kept on file.
• Withhold income tax from your employees according to the Alabama Withholding Tax Tables and the Federal Circular E using the information on the A-4 and W-4.
• Forward your Alabama Form A-1 with a check for Alabama income tax withheld to the Department of Revenue.
• Forward Federal Form 940 (Federal Income Tax Withheld, Social Security and Medicare) and Form 941 (Federal Unemployment) with checks to the appropriate agencies. (See the appropriate forms and booklets for due dates, penalties, etc.).
• At the end of the year, complete Form A-3 (state) and Form W-3 (federal) and send them to the appropriate agency along with the proper copy of W-2s.
• Furnish each employee with a copy of the employee's W-2 on or before the last day of January.
• Contact the Alabama Taxpayer Service Center for Verification of "Contract Labor".