Alabama Hourly Paycheck Calculator

Alabama Payroll Taxes

Every Alabama paycheck typically includes withholdings for federal income tax, Social Security, Medicare, and Alabama state income tax. Some municipalities also impose a local occupational tax on employees, but most do not. Employers are responsible for state unemployment insurance (SUTA), federal unemployment (FUTA), and workers’ compensation. Eligible pretax benefits—such as 401(k), 403(b), 457(b), HSA, FSA, commuter benefits, and select insurance premiums—can reduce taxable wages if plan-qualified.

• Employee (federal): Federal income tax (based on Form W-4), Social Security, Medicare, and Additional Medicare for high earners.
• Employee (state/local): Alabama state income tax (Form A-4 elections) and any applicable city occupational tax.
• Employer: Alabama SUTA, federal FUTA, workers’ compensation, and local employer obligations (where required).
• Pretax deductions: Can reduce federal and state taxable wages and, when eligible, FICA liabilities.

How Your Alabama Paycheck Works

Your Alabama net pay equals gross earnings (hourly wages, overtime, tips, bonuses) minus pretax deductions, then minus FICA, federal income tax, Alabama state withholding, and any local occupational tax. The calculator provides a detailed breakdown of hours, pay rate, deductions, and final take-home pay.

• Inputs: Hourly rate, total hours, overtime, tips, pay frequency, filing status, dependents, city (if any), and deductions.
• Outputs: Line-by-line summary of FICA, federal, state, and local taxes, deductions, and estimated net pay.
• Supplemental wages: Compares flat versus aggregate federal withholding methods for bonuses or commissions.

Alabama Unemployment Insurance Tax Rates (Employer SUTA) — 10-Year Summary

Before publishing, replace placeholders with official Alabama Department of Labor data for each tax year, including taxable wage base, experience-rated range, and new-employer rate.

Alabama Salary Threshold

Alabama follows the federal Fair Labor Standards Act (FLSA). To qualify as exempt, employees must meet both duty tests and the federal salary-basis threshold. Job titles alone do not guarantee exemption. Employers should also verify Alabama minimum wage (the federal rate applies statewide unless local ordinances differ), tip-credit rules, and industry-specific wage standards when classifying employees or calculating overtime.

Median Household Income in Alabama — 10-Year Trend

Before publishing, update this table with official U.S. Census Bureau or American Community Survey (ACS) estimates.

Alabama FICA (Federal Insurance Contributions Act)

FICA taxes apply nationwide, including Alabama. Employees pay Social Security and Medicare taxes, and employers match both. Once income exceeds the federal threshold, Additional Medicare tax applies (without employer match). Certain pretax benefits, like Section 125 health premiums, can reduce FICA-taxable wages when plan-eligible.

Alabama Cities with Local Income Taxes

Several Alabama cities levy an employee occupational tax—a local wage tax—in addition to state and federal withholding. Rates and reporting rules vary by city. Many Alabama municipalities have no wage tax. Always verify your worksite city’s current ordinance before estimating paychecks.

Illustrative Alabama Occupational (Local Wage) Tax Table

Alabama Wage and Hour Laws: Overtime and Pay Frequency

• Overtime: Non-exempt employees earn 1.5× their regular rate after 40 hours per week (federal FLSA standard; Alabama has no separate overtime rule).
• Pay frequency: Employers must pay on a consistent schedule (commonly biweekly or semimonthly) and provide itemized pay statements.
• Recordkeeping: Employers must maintain accurate time and payroll records.

Additional Alabama Payroll Forms

• IRS Form W-4 — Federal withholding elections
• Alabama Form A-4 — Employee’s State Withholding Exemption Certificate
• Form I-9 — Employment eligibility verification
• Direct deposit authorization and benefits enrollment (401(k), HSA, FSA, insurance)
• Alabama employer registration for unemployment tax and required workplace postings

FAQs: Alabama Hourly Paycheck Calculator

How do I use the Alabama Hourly Paycheck Calculator?

Enter your hourly rate, total hours, overtime, tips, pay frequency, filing status, dependents, city (if applicable), and deductions. The calculator applies FICA, federal, state, and any local occupational taxes to estimate take-home pay with a clear itemized breakdown.

Does Alabama have local wage taxes?

Yes, some cities do. If you work in a municipality with an occupational tax, your employer typically withholds it. If not, no local wage tax applies. Always confirm your worksite’s rules.

Which form controls my Alabama state withholding?

Alabama Form A-4 determines your state withholding elections. Complete it along with your IRS W-4, and update both after life changes or filing-status adjustments.

How do I enter overtime, shift differentials, tips, and bonuses?

Use the 1.5× multiplier for overtime beyond 40 hours per week. Enter tips, differentials, and bonuses separately so the calculator recalculates taxes accurately.

Why did my Alabama paycheck change this period?

Possible reasons include variable hours, overtime, bonuses, updated W-4/A-4 elections, benefits changes, or working in a city with a new occupational tax rate.

Can pretax benefits increase my take-home pay?

Yes. Eligible pretax deductions—401(k), 403(b), 457(b), HSA, FSA, commuter, and qualifying insurance premiums—can reduce taxable income and potentially lower FICA and income taxes.

How are tips taxed in Alabama?

Reported tips are subject to federal income tax, Social Security, Medicare, and Alabama state income tax. Include all reported tips to ensure accurate withholding and compliance.

How do multiple jobs affect my Alabama withholding?

Use the IRS multiple-job worksheet on Form W-4 and ensure your Alabama A-4 matches. Run paycheck estimates for each job separately—especially if one is in a city with an occupational tax.

When does Additional Medicare tax apply?

Once earnings exceed the federal threshold, employers must withhold the Additional Medicare tax on the excess. This tax has no employer match.

Are bonuses and commissions taxed differently?

Yes. These are classified as supplemental wages. Employers may use either the flat federal supplemental rate or the aggregate method. Alabama state tax and any applicable city tax still apply.

Can the calculator project annual take-home pay?

Yes. Multiply your average weekly hours by 52, include estimated overtime, tips, and bonuses, and run the calculation with your pay frequency, city, and deductions for an approximate annual net amount.

Common Alabama Paycheck Questions (Google, Reddit, Quora)

Google: “How much is my Alabama paycheck after taxes?” “Which cities have occupational taxes?” “How do 401(k) and HSA affect net pay?”

Reddit: “My AL net seems low—did the city tax apply?” “Overtime vs. second job: which pays more?” “How to raise net with pretax benefits?”

Quora: “How to estimate net pay before taking a job in Birmingham?” “How do W-4 and A-4 interact?” “What’s the effect of local occupational tax on take-home pay?”