What payroll deadlines should employers track?

Payroll Tax Deadlines for Employers in Alabama

Employers operating in Alabama must keep track of several important payroll tax deadlines to ensure compliance and avoid penalties. These deadlines involve federal and state tax obligations related to employee wages.

Federal Payroll Tax Deadlines

• Federal Income Tax Withholding, Social Security, and Medicare Taxes: Employers must deposit these taxes according to their deposit schedule, which can be semi-weekly or monthly. Deposits are made via the Electronic Federal Tax Payment System (EFTPS).
• Quarterly Federal Tax Returns (Form 941): Filed by the last day of the month following each quarter:
  • April 30 for Q1 (Jan-Mar)
  • July 31 for Q2 (Apr-Jun)
  • October 31 for Q3 (Jul-Sep)
  • January 31 for Q4 (Oct-Dec)
• Annual Federal Unemployment Tax Return (Form 940): Due by January 31 of the following year.
• W-2 and W-3 Forms: Must be provided to employees and filed with the Social Security Administration by January 31.

Alabama State Payroll Tax Deadlines

• State Income Tax Withholding: Alabama requires monthly or quarterly withholding tax deposits depending on the employer’s payroll size. Deposits are submitted through the Alabama Department of Revenue’s My Alabama Taxes (MAT) system.
• Quarterly State Tax Returns (Form A-1): Filed quarterly by the last day of the month following the quarter:
  • April 30 for Q1
  • July 31 for Q2
  • October 31 for Q3
  • January 31 for Q4
• Unemployment Insurance Taxes: Employers must file quarterly wage reports and pay unemployment insurance taxes by the last day of the month following the end of each quarter.

Operational Tips

• Automate Payroll Processes: Use payroll software that integrates federal and Alabama state tax calculations and reminders for deadlines.
• Maintain Accurate Records: Keep detailed payroll and tax deposit records for at least four years to support compliance and audits.
• Review Deposit Schedules Annually: As of 2026, deposit frequency may change based on payroll tax liability, so verify your schedule regularly.
• Coordinate With Bookkeeping: Align payroll tax payments with your bookkeeping system to ensure accurate financial reporting.