Sources checked:
Quick answer. Alabama: $8,000 SUTA wage base (2026); 2.7% new employer rate; new hires reported in 7 days; no adult meal break rule. 16 of 19 checklist items are confirmed on official pages; 3 are marked not confirmed, with the page to check.
Alabama 2027 employer checklist
1. Register for unemployment tax and withholdingBefore the first payroll.
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ConfirmedOpen a state unemployment tax account
Register through the department's eGov system once you've paid wages for work in the state (department FAQ).
Source: Alabama Department of Workforce, checked November 2026 · More: Alabama unemployment tax 2027
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Not confirmedTaxable wage base for 2027
Not confirmed — check Alabama Department of Workforce: Employers FAQ.
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ConfirmedTaxable wage base for 2026 (the latest published)
$8,000 per employee in 2026.
The department's FAQ: employers are taxed on the first $8,000 paid to each worker in a calendar year.
Source: Alabama Department of Workforce: Employers FAQ, checked November 2026 · More: Alabama unemployment tax 2027
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ConfirmedNew employer tax rate
2.7% for a new employer.
Newly liable employers pay 2.70% on the first $8,000 until they qualify for an experience rate (department FAQ).
Source: Alabama Department of Workforce: Employers FAQ, checked November 2026 · More: Alabama unemployment tax 2027
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ConfirmedQuarterly wage reports and payments
Contribution and wage reports are due the last day of the month after the quarter ends: January 31, April 30, July 31 and October 31 (department FAQ). Reports are filed online.
Source: Alabama Department of Workforce: Employers FAQ, checked November 2026 · More: Alabama unemployment tax 2027
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Not confirmedState income tax withholding
The state has an income tax (confirmed); the employee withholding certificate is not confirmed in our files. Not confirmed — check ALDOR: Information Return Filing Requirements (1099).
2. Report new hires and check work eligibilityFor every hire, rehire and, where the state says so, contractor.
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ConfirmedReport each new hire to the state
Within 7 days of the first day of work (employers with fewer than 5 employees reporting by mail or fax). Employers with 5 or more employees must report electronically, twice a month, 12 to 16 days apart. The paper NH-1 card is no longer accepted.
- Who: All employees who are newly hired or recalled to work, including temporary, seasonal and part-time workers.
- Independent contractors: no. The Alabama Department of Labor says the state does not require the reporting of independent contractors as new hires.
- How: online, electronic file, mail, fax.
Source: Alabama Department of Labor: New-Hire reporting, checked November 2026 · More: First hire checklist for Alabama
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ConfirmedE-Verify for private employers
Every business or employer in the state must enroll in E-Verify and use it for new hires. Effective: April 1, 2012 for every employer. The state contract rule took effect January 1, 2012, and the 2012 amendments took effect when signed on May 18, 2012.
every business entity or employer in this state shall enroll in E-Verify
- If skipped: For knowingly employing an unauthorized worker, a court can order those workers let go, put the business on three years' probation and suspend licenses at that location for up to 60 days. Second and third violations bring five and seven years' probation and longer or permanent license loss.
Source: HB658 (2012 Regular Session), engrossed: amendments to the Beason-Hammon Act, checked November 2026 · More: Alabama E-Verify
3. Set pay at the minimum wage: January 1 and mid-yearCheck every hourly and tipped rate against the floor.
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ConfirmedMinimum wage now (2026)
No state minimum wage law, per US DOL. Employers covered by the federal Fair Labor Standards Act pay the federal $7.25.
Source: U.S. Department of Labor: State Minimum Wage Laws (updated November 5, 2026), checked November 2026 · More: Minimum wage by state 2027
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ConfirmedMinimum wage change in 2027
No state rate; the federal $7.25 continues unless Congress changes it.
Source: U.S. Department of Labor: State Minimum Wage Laws (updated November 5, 2026), checked November 2026 · More: Minimum wage by state 2027
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ConfirmedTipped employees
Cash wage of at least $2.13 an hour in 2027, with tips making up the rest.
Federal rule: a cash wage of at least $2.13 with tips making up the rest of $7.25 (US DOL tipped table).
Source: U.S. Department of Labor: Minimum Wages for Tipped Employees (revised July 1, 2026), checked November 2026 · More: Minimum wage by state 2027
4. Paid sick leaveAccrual, limits and notice.
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Not confirmedPaid sick leave
Not confirmed — check Alabama Department of Labor: I have questions about pay, unpaid wages, breaks, vacation pay, FMLA, etc..
5. Meal and rest breaksAdults and workers under 18.
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ConfirmedMeal breaks for adults
No state requirement, per the state's own page. No state meal break rule for adults. Alabama's labor department says the state has no wage and hour laws of its own.
Alabama does not have any state laws governing wage and hour issues.
Source: Alabama Department of Labor: I have questions about pay, unpaid wages, breaks, vacation pay, FMLA, etc., checked November 2026 · More: Meal and rest break laws by state
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ConfirmedRest breaks for adults
No state requirement, per the state's own page. No state rest break rule for adults; the same labor department answer covers breaks.
Alabama does not have any state laws governing wage and hour issues.
Source: Alabama Department of Labor: I have questions about pay, unpaid wages, breaks, vacation pay, FMLA, etc., checked November 2026 · More: Meal and rest break laws by state
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ConfirmedBreaks for workers under 18
14- and 15-year-olds working more than 5 hours in a row need a documented 30-minute break. No breaks are required at 16 and older. (Ages: 14 and 15.)
A documented 30 minute break is required for any 14 or 15 year old who is employed for more than 5 hours continuously.
Source: Alabama Department of Labor: I have questions about pay, unpaid wages, breaks, vacation pay, FMLA, etc., checked November 2026 · More: Meal and rest break laws by state
6. Workers' compensationCoverage, posters and proof.
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ConfirmedWorkers' compensation insurance
Required once an employer regularly has five or more employees. Corporate officers count toward the five.
If you regularly employ fewer than five employees
- Owners and officers: Corporate officers are counted toward the five-employee threshold. The page doesn't address sole proprietors, partners or LLC members.
- Check a policy: The state's page lists the Workers' Compensation Division at 1-800-528-5166 or 334-956-4044 for coverage questions.
Source: Insurance Compliance - Workforce Alabama, checked November 2026 · More: Workers' comp requirements by state
7. Final payWhen someone leaves.
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ConfirmedFinal pay when you let someone go
The Alabama Department of Labor says Alabama has no state wage and hour laws and points employers to federal rules; no state final-pay deadline applies.
Alabama does not have any state laws governing wage and hour issues.
Source: Alabama Department of Labor: I have questions about pay, unpaid wages, breaks, vacation pay, FMLA, etc., checked November 2026 · More: Final paycheck laws by state
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ConfirmedFinal pay when an employee quits
The Alabama Department of Labor says Alabama has no state wage and hour laws and points employers to federal rules; no state final-pay deadline applies.
Alabama does not have any state laws governing wage and hour issues.
Source: Alabama Department of Labor: I have questions about pay, unpaid wages, breaks, vacation pay, FMLA, etc., checked November 2026 · More: Final paycheck laws by state
8. Year-end W-2 and 1099 filingState copies, due in early 2027 for 2026 pay.
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ConfirmedState copies of W-2s and 1099s
Copies of federal 1099s go to ALDOR by March 15 unless Alabama income tax was voluntarily withheld. 1099s that show Alabama withholding are filed with Form A-3 by January 31 through My Alabama Taxes.
- W-2s: January 31
- 1099s: March 15 (no Alabama withholding); January 31 with Form A-3 (Alabama tax withheld)
- Annual reconciliation: Form A-3, Annual Reconciliation of Alabama Income Tax Withheld, due January 31.
- Electronic filing: ALDOR's W-2 FAQ gives two figures in consecutive paragraphs: employers submitting 25 or more W-2s, and employers submitting 10 or more W-2s, must file electronically. Ask ALDOR which applies.
Source: ALDOR: Information Return Filing Requirements (1099), checked November 2026 · More: 1099 and W-2 deadline finder
Key dates for 2027
Only the dates our files state. A date on a weekend or holiday is flagged, not moved, unless the agency's page says it moves.
| Date | What | Source |
|---|---|---|
| Sunday, January 31, 2027 | Unemployment tax report and payment for the fourth quarter of 2026 Falls on a Sunday. This is the date as the agency states it; check its rule for weekend due dates (see step 1). | |
| Sunday, January 31, 2027 | Form A-3 with W-2s and any 1099s showing Alabama withholding Sunday, January 31, 2027 is a Sunday. The agency's page we opened doesn't say whether it moves to the next business day; file by the Friday before to be safe, or ask the agency. | |
| Monday, February 1, 2027 | Form W-2 Copy A (with W-3) to SSA, and employee copies (federal) | |
| Monday, February 1, 2027 | Form 1099-MISC copies to payees (federal) | |
| Monday, February 1, 2027 | Form 1099-NEC to the IRS and to each payee (federal) | |
| Monday, March 1, 2027 | Form 1099-MISC to the IRS on paper (federal) | |
| Monday, March 15, 2027 | Copies of 1099s without Alabama withholding (unless filed through CF/SF) | |
| Wednesday, March 31, 2027 | Form 1099-MISC to the IRS electronically (federal) | |
| Friday, April 30, 2027 | Unemployment tax report and payment for the first quarter of 2027 | |
| Saturday, July 31, 2027 | Unemployment tax report and payment for the second quarter of 2027 Falls on a Saturday. This is the date as the agency states it; check its rule for weekend due dates (see step 1). | |
| Sunday, October 31, 2027 | Unemployment tax report and payment for the third quarter of 2027 Falls on a Sunday. This is the date as the agency states it; check its rule for weekend due dates (see step 1). |
Still to confirm
- Taxable wage base for 2027: check Alabama Department of Workforce: Employers FAQ
- State income tax withholding: check ALDOR: Information Return Filing Requirements (1099)
- Paid sick leave: check Alabama Department of Labor: I have questions about pay, unpaid wages, breaks, vacation pay, FMLA, etc.
Alabama kit
Alabama Employer Compliance Kit 2027
This checklist as a printable document with every source link and check date, a 2027 deadline calendar, a start-here guide, and an Excel workbook with a deadline tracker and new-hire and pay-change checklists, all built from the same data as this page.
Get the kit, $19 Or the 2027 Employer Compliance Bundle (7 Kits), $59
General information, not legal, tax or payroll advice. We are not lawyers, and MCC Solutions is not a law firm or a payroll service. Nothing here guarantees compliance. Rules change, cities and counties can add their own, and the agency's own page has the final word.
Common questions
What is the Alabama unemployment tax wage base for 2027?
Not confirmed in our data files. Check Alabama Department of Workforce: Employers FAQ (https://workforce.alabama.gov/employers/faq/). The latest published base is $8,000 per employee in 2026.
How soon must a Alabama employer report a new hire?
Within 7 days of the first day of work (employers with fewer than 5 employees reporting by mail or fax). Employers with 5 or more employees must report electronically, twice a month, 12 to 16 days apart. The paper NH-1 card is no longer accepted.
What is the Alabama minimum wage in 2027?
No state rate; the federal $7.25 continues unless Congress changes it.
Does Alabama require paid sick leave?
Not confirmed in our data files. Check Alabama Department of Labor: I have questions about pay, unpaid wages, breaks, vacation pay, FMLA, etc. (https://adol.alabama.gov/faq/i-have-questions-about-pay-unpaid-wages-breaks-vacation-pay-fmla-etc/).
When is a final paycheck due in Alabama?
If the employer ends the job: The Alabama Department of Labor says Alabama has no state wage and hour laws and points employers to federal rules; no state final-pay deadline applies. If the employee quits: The Alabama Department of Labor says Alabama has no state wage and hour laws and points employers to federal rules; no state final-pay deadline applies.
Does Alabama require state W-2 or 1099 filing?
Copies of federal 1099s go to ALDOR by March 15 unless Alabama income tax was voluntarily withheld. 1099s that show Alabama withholding are filed with Form A-3 by January 31 through My Alabama Taxes. W-2s: January 31 1099s: March 15 (no Alabama withholding); January 31 with Form A-3 (Alabama tax withheld)
Do Alabama employers need workers' comp?
Required once an employer regularly has five or more employees. Corporate officers count toward the five.
Related: Employer compliance by state · 2027 changes for employers