The Alabama A-1 form, officially known as the Employer’s Quarterly Return of Income Tax Withheld, is a document that employers in Alabama must file to report the income tax withheld from employees' wages. This form is due on the last day of the month following the end of each quarter, and it is essential for compliance with state tax regulations. To ensure timely filing and payment, especially for amounts of $750 or more, employers are required to submit this form electronically.
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The Alabama A-1 form, officially known as the Employer’s Quarterly Return of Income Tax Withheld, plays a crucial role in the state's tax system. Employers are required to submit this form on or before the last day of the month following the end of each quarter. For instance, if the quarter ends on March 31st, the form must be filed by April 30th. New employers must first obtain a withholding tax account number before they can file. While personalized coupons are typically provided for routine filings, blank forms may be used in certain circumstances. It's essential for employers to understand that if they stop withholding Alabama income tax, they must indicate this on the form. The A-1 form includes specific lines for reporting the number of employees, total tax withheld, and any penalties or interest due for late payments. Employers should be mindful of the penalties for late filing and payment, which can accumulate quickly. Proper preparation and timely submission of this form are vital to ensure compliance with Alabama tax regulations and to avoid unnecessary fees.
PLEASE NOTE
PAYMENTS OF $750 OR MORE MUST BE FILED AND PAID ELECTRONICALLY.
TO PREPARE, FILE AND PAY THIS RETURN ON-LINE.
GENERAL INSTRUCTIONS
DUE DATE – Form A-1, Employer’s Quarterly Return of Income Tax Withheld, is due on or before the last day of the month following the end of the quar- ter being filed. For example, Form A-1 for Quarter Ending March 31st is due on or before April 30th.
FIRST RETURN – New employers must apply for a withholding tax account number at www.myalabamataxes.alabama.gov.
ROUTINE FILING – Blank forms may be used only when personalized coupons cannot be obtained in time to file a return by the due date. Unless filing or required to file electronically, each employer is furnished personalized coupons with the employer’s name, address, withholding tax account number, period covered, and due date.
FINAL RETURN – When an employer ceases to withhold Alabama income tax, an “X” should be placed in the space provided in Line 1 of the return.
INSTRUCTIONS FOR PREPARING FORM A-1
LINE 1 – If you have discontinued withholding Alabama income tax, and wish for your account to be closed, place an “X” in the blank on this line to indi- cate a final return.
LINE 2 – Enter number of employees from whose wages Alabama income tax has been withheld during this reporting period. LINE 3 – Enter total Alabama income tax withheld during the quarter covered by return. (3 months)
LINE 4 – Enter total Alabama withholding tax previously remitted for the first and/or second months of quarter.
LINE 5 – Use this line to claim credit for an overpayment of Alabama withholding tax for prior periods. If a credit memorandum has not been issued by the Alabama Department of Revenue, the return on which credit is claimed must be accompanied by documentation to substantiate the overpayment.
LINE 6 – Penalty for late filing of Form A-1 is 10% of the tax due (Line 3 minus Line 4) or $50.00, whichever is greater. Penalty for late payment of with- holding tax is 10% of the tax due. In cases where both return and payment are delinquent, the two penalties should be added and shown as one figure on Line 6. Report and payment of tax must be postmarked on or before the due date to avoid delinquent penalty and interest charges.
LINE 7 – Interest is computed at the rate applicable to federal tax deficiencies and is subject to change each quarter. Call the Withholding Tax Section for the current interest rate.
LINE 8 – Add Lines 3, 6, and 7; subtract Lines 4 and 5; show balance on Line 8.
LINE 9 – Indicate on Line 9 the amount remitted with the return. If amount remitted is different from amount on Line 8, a detailed explanation of the dif- ference should accompany the return. Make check or money order for amount on Line 9 payable to Alabama Department of Revenue. Mail re- turn and check to Income Tax Administration Division, Withholding Tax Section, P.O. Box 327483, Montgomery, AL 36132-7483 (phone 334-242-1300).
Revised 9/20
PLEASE CUT HERE
FORM A-1 ALABAMA DEPARTMENT OF REVENUE EMPLOYER’S QUARTERLY RETURN OF INCOME TAX WITHHELD
1. If You Are No Longer Withholding Alabama Income Tax And Wish For Your Account To Be Cancelled, Place An “X” Here . . . . . . . . . . . . . . . . . y
2. Number Of Employees From Whose Wages Alabama Tax Was Withheld . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . y 3. Alabama Income Tax Withheld This Quarter (3 Months). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
4. Less Alabama Tax Remitted First 2 Months Of Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
5. Credit For Overpayment Of Prior Periods (See Instructions). . . . . . . . . . . . . . . . . . . . . . . . . . . . $
6. Delinquent Penalty (Applicable To This Return Only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
7. Interest (Applicable To This Return Only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
8. Total Amount Due With This Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
9. Amount Remitted With This Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . y $
NAME AND ADDRESS
PERIOD COVERED
DATE DUE
ALA. WITHHOLDING TAX ACCOUNT NO.
______________________________________ ________________________________ ______________________
SIGNATURE
TITLE
DATE
Completing the Alabama A-1 form is essential for employers who need to report income tax withheld from employee wages. Follow these steps carefully to ensure accurate submission.
What is the due date for submitting the Alabama A-1 form?
The Alabama A-1 form, also known as the Employer’s Quarterly Return of Income Tax Withheld, is due on or before the last day of the month following the end of the quarter being reported. For instance, if you are filing for the quarter ending March 31st, your submission must be completed by April 30th.
How can new employers obtain a withholding tax account number?
New employers must apply for a withholding tax account number through the Alabama Department of Revenue's online portal at www.myalabamataxes.alabama.gov. This step is essential before they can begin withholding Alabama income tax from employee wages.
What should employers do if they are no longer withholding Alabama income tax?
If an employer has stopped withholding Alabama income tax and wishes to close their account, they need to indicate this on Line 1 of the Alabama A-1 form by placing an “X” in the designated space. This action will signal that the form is a final return.
What are the penalties for late filing and payment of the Alabama A-1 form?
Employers who file the Alabama A-1 form late will incur a penalty of 10% of the tax due (calculated as Line 3 minus Line 4) or a minimum of $50.00, whichever amount is greater. Additionally, there is a 10% penalty for late payment of withholding tax. If both the return and payment are late, the penalties will be combined and reported as a single figure on Line 6 of the form.
Completing the Alabama A-1 form can be a straightforward task, but several common mistakes can lead to complications. Understanding these pitfalls can help ensure a smoother filing process.
One frequent error is failing to file electronically when required. If the total payment is $750 or more, the Alabama Department of Revenue mandates electronic filing and payment. Ignoring this requirement can result in penalties and delays in processing.
Another mistake involves missing the due date. The A-1 form must be submitted by the last day of the month following the end of the quarter. For instance, if the quarter ends on March 31, the form is due by April 30. Late submissions incur penalties, which can add unnecessary costs.
New employers often overlook the need to apply for a withholding tax account number. Before submitting the A-1 form, it is essential to register online at the Alabama Department of Revenue's website. Failing to do so can lead to confusion and delays in processing the return.
Incorrectly completing Line 1 is another common issue. If an employer has stopped withholding Alabama income tax, they must indicate this by placing an “X” in the appropriate box. Neglecting to do this can result in continued liability for withholding tax obligations.
Line 3, which requires the total Alabama income tax withheld during the quarter, is often filled out incorrectly. Employers should double-check their calculations to ensure accuracy. Mistakes here can lead to discrepancies that complicate the filing process.
Lastly, failing to provide a detailed explanation on Line 9 when the amount remitted differs from the calculated total on Line 8 can cause significant issues. The Alabama Department of Revenue requires clarity on any discrepancies, and without proper documentation, the return may be flagged for further review.
By being aware of these common mistakes, employers can navigate the filing process with greater confidence and accuracy. Taking the time to review each section of the Alabama A-1 form can save time and prevent potential penalties.
The Alabama A-1 form, known as the Employer’s Quarterly Return of Income Tax Withheld, is essential for employers to report income tax withheld from employee wages. Several other forms and documents are commonly used in conjunction with this form to ensure compliance with Alabama tax regulations. Below are four important documents that may accompany the Alabama A-1 form.
Understanding these additional forms and documents can help employers maintain compliance with state tax requirements. Proper filing and accurate reporting are crucial for avoiding penalties and ensuring smooth operations.
The Alabama A-1 form, which serves as the Employer’s Quarterly Return of Income Tax Withheld, shares similarities with several other important tax documents. Each of these documents plays a crucial role in tax reporting and compliance. Below is a list detailing four documents that are comparable to the Alabama A-1 form:
When filling out the Alabama A-1 form, it's important to follow certain guidelines to ensure accuracy and compliance. Here’s a list of what you should and shouldn't do:
Misconceptions about the Alabama A-1 form can lead to confusion for employers. The following list addresses common misunderstandings:
Filling out the Alabama A-1 form is an essential task for employers who withhold income tax from their employees' wages. Here are some key takeaways to ensure a smooth filing process:
By keeping these takeaways in mind, you can navigate the filing process with greater confidence and ensure compliance with Alabama tax regulations.