Employers in Alabama must conform with these state rules relating to income tax withholding and administration.
General Withholding Requirement: Alabama income tax must be withheld from wages paid for services performed in Alabama, regardless of the state of residency of the employer or the employee.
Employee Withholding Exemption Forms: Alabama Form A-4 must be completed by each employee, to determine the appropriate level of state income tax to withhold from earnings. Of course, Federal Form W-4 also must be completed by each employee, to determine the appropriate level of federal income tax to withhold from earnings.
Reciprocal Agreements: None.
Administration:
Alabama Department of Revenue
Income Tax Division
Withholding Tax Section
P.O. Box 327488
Montgomery, Alabama 36132-7488
Telephone: 334-242-1000