Alabama State Facts Alabama Effective 1/1/2021 Federal Effective 7/24/2009
| Alabama Final Paycheck Law | |
|---|---|
| Fired: | No law exists. |
| Quit: | No law exists. |
| Alabama Direct Deposit Law | |
|---|---|
| Force Direct Deposit: | Private Sector: Yes. Public Sector: No. |
| Alabama Minimum Wage | |
|---|---|
| Minimum Wage | $7.25 |
| Minimum Cash Wage(Tipped Employee) | $2.13 |
| Maximum Tip Credit | $4.25 |
| Alabama State Income Tax | |
|---|---|
| Wage Withholding | Tables |
| Alabama Unemployment Insurance |
|---|
| Maximum 2022 Taxable Earnings(Unchanged from 2021) | $8,000 |
| Employee 2022 Deduction | None |
| Employer 2022 Tax Rates(Includes 0.2% fund-stabilization surtax) | 0.50-6.10% |
| Standard 2022 New Employer Rate(Includes 0.2% fund-stabilization surtax) | 2.70% |
| Voluntary Contribution Permitted | No |
Federal Tax Facts
| Federal Minimum Wage | |
|---|---|
| Minimum Wage | $7.25 |
| Minimum Cash Wage(Tipped Employee) | $2.13 |
| Maximum Tip Credit | $5.12 |
| Youth Minimum Wage | $4.25 |
| FICA (Medicare) | |
|---|---|
| Maximum Taxable Earnings | No Limit |
| Employee / Employer Tax Rate (Unchanged from 2019) | 1.45% |
| Additional Medicare Tax Withholding on Wages > $200,000(No Employer Match) | 0.90% |
| FICA (Social Security) | |
|---|---|
| Maximum Taxable Earnings (Increased from $142,800 in 2021 | $147,000 |
| Employee / Employer Tax Rate(Unchanged from 2021) | 6.20% |
| FUTA (Employer-Paid) | |
|---|---|
| Maximum Taxable Earnings | $7,000 |
| Percent of Taxable Wages | 6.00% |
| Maximum Credit | 5.40% |
| Normal Net Tax | .060% |
| Health Savings Accounts | |
|---|---|
| Self-Only Contribution Limit (Employee / Employer)(Increased from $3,600 in 2021) | $3,650 |
| Family Contribution Limit (Employee / Employer)(Increased from $7,200 in 2021) | $7,300 |
| Catch-up Contribution Limit (Employee / Employer)(Unchanged from 2021) | $1,000 |
| Pension Plans | |
|---|---|
| Contribution Limit – 401(k) & 403(b) plans(Increased from $19,500 in 2021) | $20,500 |
| Catch-up Contribution Limit – 401(k) & 403(b) plans (age 50 or older) (Unchanged from 2021) | $6,500 |