Electronic Filing of wage and tax information is required if submitting 25 or more W-2 and/or 1099 forms, if Alabama income tax was withheld from the 1099 distribution. The due date for filing wage and tax information is the last day of February.Filing Form A-3, Annual Reconciliation of Alabama Income Tax Withheld, is a two-step process: submission of employee W-2 information and/or 1099s (with Alabama income tax withheld), and submission of Form A-3, the annual reconciliation of the monthly/quarterly taxes withheld and remitted to the Department.
Step 1 – Submission of W-2 and/or 1099 Statements:
Taxpayers can manually enter their wage and tax information or they can upload a file containing their information. The format of this file is specified by Alabama Form 10. Only 1099’s with Alabama income tax withheld should be included in the file.1. The Paperless Filing System allows filers to manually enter up to 50 statements. Select “I will manually enter my W-2 information” and enter all of your wage and tax information.
2. To upload a file through the Paperless Filing System, select “I will upload a file containing W-2 information” and follow the steps provided. Receiving File Accepted status does not complete the process; you must complete and submit Form A-3. Any errors in your file must be corrected and the file uploaded again.To upload a file through My Alabama Taxes, click the Import link and select the file to upload. Complete Form A-3 in Step 2, Submit and receive your confirmation number. Any errors in your file must be corrected and the file uploaded again.
If you do not have software that will create an acceptable file to upload, the Department has provided an Excel program that will create a W2REPORT file that can be uploaded through either system. Click here for information on using the spreadsheet provided by the Department to create your W-2 file.
Step 2 – Completion of the A-3 Annual Reconciliation:
Upon successfully entering or uploading the W-2 and/or 1099 information, you must complete Form A-3 online. All fields on Form A-3 are required and must be entered on the form. After the information is entered, click Calculate in the Paperless Filing system or OK in My Alabama Taxes. The system will compare the number of employee wage statements entered on Form A-3 to the number of W-2 and/or 1099 statements filed and the amount reported on Block 2 will be compared to the sum of the State Income Tax Withheld on the W-2 and/or 1099 statements filed. Form A-3 will not be accepted if these amounts do not agree. Click Submit to receive a confirmation number and print the confirmation page for your record. Please note that your information will not be received until you have received a confirmation number.