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Alabama unemployment insurance tax (FUTA/SUTA): HR compliance guide

Strengthen payroll compliance using guidance on Alabama unemployment insurance taxes, from contribution rates and voluntary contributions to reporting requirements and overpayment issues.

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by Vicki M. Lambert, The Payroll Advisor

Managing unemployment insurance tax obligations is a critical part of HR and payroll compliance for Alabama employers.

Our guide provides HR and payroll professionals with essential compliance guidance on the test for employee state unemployment insurance (SUI) tax coverage and what constitutes SUI taxable wages in Alabama. It covers key topics such as the taxable wage base, contribution rates, experience rating methods, SUTA dumping prevention, voluntary contributions, joint or combined accounts, quarterly reporting requirements, penalties for late filing, benefit overpayments, multiple worksite reporting, and recordkeeping requirements—helping HR teams stay compliant, reduce risk, and maintain accurate payroll operations.

In this guide, learn about:

  • Test for Unemployment Tax Coverage
  • SUI Taxable Wages
  • Taxable Wage Base
  • Contribution Rates
  • Experience Rating Method
  • SUTA Dumping
  • Voluntary Contributions
  • Joint or Combined Accounts
  • Quarterly Reporting Requirements
    • Penalties
  • Benefit Overpayments
  • Multiple Worksite Reporting
  • Recordkeeping Requirements
  • Future Developments

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

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Jurisdiction: Alabama

Latest updates

Updated to reflect a change in the test for unemployment tax coverage, effective July 1, 2021.

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