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Depositing and Reporting Withheld Taxes: Alabama

Depositing and Reporting Withheld Taxes requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

  • Alabama has two tax deposit thresholds and schedules. All employers are required to make quarterly deposits unless the employer has withheld more than $1,000 in either the first or second month of the quarter. Employers that withhold more than $1,000 in either the first or second month of the quarter are required to deposit monthly. See Deposit Thresholds and Schedules.
  • Employers must use specific state forms to file monthly, quarterly and annual reports of withheld taxes. See Forms; Annual Reconciliation Forms and Filing Deadlines.
  • Form A-1 is due by the last day of the month following the end of the quarter, even if no tax has been withheld. Monthly withholding returns, Forms A-6, are due by the 15th of the month following the month in which the tax withheld. See Deposit and Filing Due Dates.
  • Certain employers are required to file withholding tax returns and make tax deposits electronically. See Electronic Deposit Requirements.
  • Employers submitting 25 or more Forms W-2 must submit the forms electronically on the Department of Revenue's (DOR's) website. See Electronic and Magnetic Media Form W-2 Reporting Requirements.
  • Penalties are imposed for failure to comply with the income tax depositing and filing requirements. See Penalties.