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View All Withholding Tax FAQs

Are any employees exempt from withholding tax?

Yes, the chief classes of exempt employment are domestic services in private homes, merchant seamen, duly ordained ministers performing duties of their ministry, and agricultural employees. Although these wages are exempt from withholding tax requirements, the wages do represent taxable income and should be reported by the employee on their individual income tax return. Employers should provide both the employee and the Department with a copy of Form W2 reflecting the wages earned by the employee for that year. For more information on these classes of exemption, please see page 2 of the Withholding Tax Tables and Instructions for Employers.

Yes, the chief classes of exempt employment are domestic services in private homes, merchant seamen, duly ordained ministers performing duties of their ministry, and agricultural employees. Although these wages are exempt from withholding tax requirements, the wages do represent taxable income and should be reported by the employee on their individual income tax return. Employers should provide both the employee and the Department with a copy of Form W2 reflecting the wages earned by the employee for that year. For more information on these classes of exemption, please see page 2 of the Withholding Tax Tables and Instructions for Employers.

Related FAQs in Withholding Tax

Follow the steps below to correct a previously filed Monthly A-6, Quarterly A-1, or Annual A-3 return:

  1. Log in to My Alabama Taxes.
    • Select “Ask a Question” under “Feedback.”
    • Provide the correct filing period(s), return(s), and amount(s) to amend.
  2. Optional – Submit a copy of the amended return.
    • You may scan and attach a copy of your amended return(s) to your request. Clearly write “Amended” at the top of your return(s).
    • You may also fax a copy of your request and return(s) marked “Amended” to 334-242-0112.
  3. If correcting the Alabama state tax amount on an employee’s W-2 Form:
    • Submit the amended Annual A-3 return.
    • Provide the W-2C form(s) so that the original W-2 form(s) can be amended.
  4. If correcting Alabama state wages only:
    • An amended Annual A-3 is not required.
    • Submit only the amended W-2C form(s).

Important: Be sure the correct filing period(s), return(s), and amount(s) are clearly identified so the corrections can be applied to the proper return(s).

 

The Alabama Department of Revenue offers a FREE electronic service, My Alabama Taxes (MAT), for filing and remitting withholding tax. MAT is an online filing system developed to allow taxpayers to file and pay their withholding tax electronically.

If you are unable to access your account via the Internet, please contact the Department at (334) 242-1300. In order to access your account via My Alabama Taxes (MAT), you will need your withholding tax account number and Sign On ID and Access Code provided by the Department to sign up in MAT.

Yes, if your business entity type changed, you will need to apply for a new state withholding tax account number by filing the Combined Registration/Application.

Please view your account online through My Alabama Taxes (MAT) to verify receipt of payment. Since checks take longer to process the Department encourages employers to electronically file and pay. Payments of $750 or more are required to be filed and paid electronically.

Contact the Withholding Tax Section at (334) 242-1300 or your local Taxpayer Service Center. Please include the following information: employer’s name, address, phone number and number of employees.

If your federal identification number changes, you will need to apply for a new state withholding tax account number by filing the Combined Registration/Application available online.