New Company Registration for Alabama

Disclaimer: This article is not intended to be tax, legal, financial, or HR advice. Rules and regulations change over time and can vary by location. Consult with a lawyer, accountant, Tax, or HR expert for specific guidance.

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Register for Taxes with Middesk

Homebase has partnered with Middesk to make tax registration easier for you.

• Middesk can register you across all 50 states for withholdings/income tax (SIT) and unemployment insurance (SUI)
• Middesk will continue to support your ongoing compliance by processing and surfacing your state mail for your review
• Middesk offers registrations for select PFMLs and local jurisdictions as well

To get started, sign up here and check out this tutorial.

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State Withholding Income Tax

Tax Agency: Alabama Department of Revenue

Registering for an Account Number

1. Go to MyAlabamaTaxes (MAT) 
2. Select Register a Business/ Obtain a new tax account number
3. Review the page that provides all information necessary to register
4. Enter type of entity and Federal ID and select “no” for existing tax accounts
5. Select applicable tax types, including income withholding tax
6. Complete remaining registration steps, enter your email address and submit the application
7. Print confirmation page
8. Once you register online, it takes 3-5 days to receive an account number

Note: You will receive a Sign-on ID and Access Code via mail with your account number.  This will be needed to set up access to your online account in the next step. 

Creating a Username & Password in ATAP

1. Once you have received your letter with your account number, Sign-on ID and Access Code
2. Go to MyAlabamaTaxes (MAT)
3. Select “Create my Alabama taxes account”
4. You will be asked for your account number, Sign-on ID, and access code
5. Create a username and password and security questions and answers
6. Complete contact information and set up third party access to  your account
7. Click submit to complete set up

Important to Note

• Your tax account number is the ten-digit series of numbers and letters assigned by the Alabama Department of Revenue (ADOR). You can find your tax account number on any correspondence that you've received from ADOR.  Update your Homebase account with your ADOR Account Number. Your account number is required for all Alabama Department of Revenue interactions to ensure your account is accurate.
• If you have any questions regarding this process, contact ADOR business registration line 334- 242-1584.  Step by step instructions are also available at MyAlabamaTaxesHelp and FAQs page.

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Unemployment Insurance Tax (UI)

Tax Agency: Alabama Department of Labor    

Setting Up Your Account & Registering

1. Go to Alabama Department of Labor eGov User Registration
2. Create a username, password and security question and answer
3. ​​Complete basic employer information that will aid in accessing available applications.

Important to Note

• Update your Homebase account with your Alabama Unemployment Compensation Account Number. Your Alabama UI account number is required for all Alabama unemployment interactions to ensure your account is accurate.
• For assistance, call the agency at (334) 954-4701 or email: eGov@labor.alabama.gov. 

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Local Taxes (Occupational Taxes or Occupational License Fees)

Tax Agency: Local Tax Agencies

Contact Each Local Tax Agency Where Work is Performed:

1. The agency will provide you with instructions on how to apply for occupational licenses and how to apply for a payroll account for occupational license fees/ occupational taxes
2. Avenu Insights & Analytics handles registration for many of the AL localities BUT not all.  It is important to ensure you contact your local agency for registration instructions.
3. If registered with Avenu Insights, they will provide you with a single Avenu account number for all locals they manage.  This is the number to provide to Check.
4. If local is not managed by Avenu Insights, the local agency will provide you with their local tax number to use (which could be your Federal ID).

Important to Note

• Employers are required to withhold taxes on wages that are earned in the local taxing jurisdiction.  
• Local taxes are each handled by their own agencies. In addition to local taxes, employers must also apply and renew occupational licenses in each locality every year by Jan 1st. The license is separate from the fee/tax.
• Note: Homebase uses a payroll partner, Check for backend payroll processing.