The Alabama A-1 form is an essential document known as the Employer’s Quarterly Return of Income Tax Withheld. This form is required for employers to report and remit the Alabama income tax that has been withheld from their employees' wages. Timely filing of this form is crucial, as it ensures compliance with state tax regulations and helps avoid penalties.
The Alabama A-1 form is an essential document for employers in Alabama, designed to facilitate the reporting and payment of state income tax withheld from employee wages. This quarterly return, known as the Employer’s Quarterly Return of Income Tax Withheld, must be submitted by the last day of the month following the end of each quarter. For instance, if a quarter ends on March 31st, the form is due by April 30th. New employers need to register for a withholding tax account number before filing their first return. The A-1 form includes several key lines that guide employers through the reporting process, such as the number of employees from whom taxes were withheld and the total amount of income tax collected during the reporting period. Employers must also account for any previous tax payments and may claim credits for overpayments. Timely submission is crucial, as penalties and interest can apply for late filings or payments. The form requires careful attention to detail, ensuring that all necessary information is accurately reported to avoid any complications with the Alabama Department of Revenue.
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
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The Alabama A-1 form is similar to the IRS Form 941, which is the Employer's Quarterly Federal Tax Return. Both forms are used by employers to report income taxes withheld from employee wages. Just as the A-1 requires the total amount of state income tax withheld, Form 941 necessitates reporting federal income tax, Social Security, and Medicare taxes withheld. The due dates for both forms are also quarterly, emphasizing the regularity of tax reporting obligations for employers.
Another comparable document is the IRS Form 944, the Employer's Annual Federal Tax Return. While the A-1 form is filed quarterly, Form 944 is intended for smaller employers who may only need to file annually. Both forms serve the same purpose of reporting tax withheld from employee wages, but the frequency and thresholds for filing differ. This distinction allows smaller employers to manage their tax responsibilities more easily.
The Alabama A-1 form also shares similarities with the Alabama Form W-2, which reports wages paid to employees and taxes withheld. While the A-1 is a summary of taxes withheld over a quarter, the W-2 provides detailed information for each employee for the entire year. Both forms are essential for accurate tax reporting and compliance, ensuring that employees receive proper credit for taxes withheld from their paychecks.
In addition, the A-1 form is akin to the IRS Form 1099, particularly the 1099-MISC, which reports payments made to non-employees. While the A-1 focuses on employee wages and withholding, the 1099-MISC is used to report payments made to independent contractors. Both forms are crucial for tax compliance and must be filed with the respective tax authorities to ensure accurate reporting of income and withholding.
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Another document that resembles the Alabama A-1 is the Alabama Business Privilege Tax Return. Both forms require businesses to report financial information to the state. However, the Business Privilege Tax Return is focused on the business's overall income and tax obligations, while the A-1 specifically addresses income tax withholding for employees. Despite their different focuses, both forms are integral to maintaining compliance with state tax regulations.
Lastly, the A-1 form can be compared to the state-specific unemployment tax returns, such as the Alabama Unemployment Compensation Tax Report. Both forms involve reporting to state tax authorities, but they cover different aspects of employment taxation. The A-1 deals with income tax withholding, while the unemployment tax return focuses on contributions to state unemployment insurance. Both are essential for employers to fulfill their tax obligations and support workforce programs.
Here are some important points to remember when filling out and using the Alabama A-1 form:
Make sure to follow these guidelines carefully to avoid penalties and ensure compliance with Alabama tax regulations.
The Alabama A-1 form is the Employer’s Quarterly Return of Income Tax Withheld. Employers use this form to report and pay the income tax that has been withheld from their employees’ wages during a specific quarter.
The A-1 form is due on or before the last day of the month following the end of the quarter being reported. For example, if you are reporting for the quarter ending March 31st, your form must be submitted by April 30th.
You can file the A-1 form electronically if your payment is $750 or more. If you are a new employer, you must first apply for a withholding tax account number at www.myalabamataxes.alabama.gov. If you cannot obtain personalized coupons in time, you may use a blank form.
If you have discontinued withholding Alabama income tax, you should indicate this by placing an “X” in the designated space on Line 1 of the form. This will signal that you wish for your account to be closed.
A penalty of 10% of the tax due (Line 3 minus Line 4) or a minimum of $50 applies for late filing. Additionally, a 10% penalty is imposed for late payment of withholding tax. If both the return and payment are late, both penalties will be combined and shown as one figure on Line 6.
Interest on late payments is computed at the rate applicable to federal tax deficiencies. This rate can change quarterly, so it’s advisable to contact the Withholding Tax Section for the current rate.
If the amount you remit with the return (Line 9) differs from the amount calculated on Line 8, you must provide a detailed explanation of the difference. This explanation should accompany your return to avoid complications.
Mail your completed A-1 form and any payment to the Income Tax Administration Division, Withholding Tax Section, P.O. Box 327483, Montgomery, AL 36132-7483. Ensure your submission is postmarked by the due date to avoid penalties.