Important Alabama State Income Tax Withholding Changes
DALLAS, Sept. 1, 2015 /PRNewswire/ -- Effective September 1, 2015, individuals performing services in Alabama as an employee may no longer claim exemption from Alabama state income tax withholding. Act 2015-504 has repealed the provision in the Alabama Code, which allowed a taxpayer to claim a total exemption from withholding tax. As a result, Form A4-E will no longer be available for use by employees. Any employees that had previously submitted a Form A4-E to their employers must submit a new Form A-4, Employee's Withholding Exemption Certificate.Please note that Alabama does not recognize the Federal Form W-4, Employee's Withholding Allowance Certificate, as an acceptable substitute for the Alabama Form A-4.
If an employee fails to provide his/her employer with a Form A-4, employers should subject any wage payments made to the impacted employee utilizing the tax withholding rate applicable assuming a "single and zero" withholding allowance.
Employers should review the withholding allowance certificates submitted by their Alabama employees prior to September 1, 2015 to ensure that there are currently no employees that have claimed exemption from Alabama state income tax withholding.
Please note that Act 2015-504 does not impact the ability of military spouses to submit Form A4-MS, Nonresident Military Spouse Withholding Tax Exemption Certificate. Form A4-MS may continue to be accepted by employers for those employees who are claiming exemption from Alabama's income tax withholding requirements based on the provisions of the Military Spouses Residency Relief Act.
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Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. With global headquarters in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a three-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 2,100 professionals and associates serves over 12,000 clients in more than 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at ryan.com.
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TECHNICAL INFORMATION CONTACT:
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Principal
Ryan
415.593.0580
[email protected]
SOURCE Ryan, LLC
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