2023 Alabama Unemployment Tax Rate Notices

What’s happening?

The Alabama Department of Revenue has started releasing 2023 Tax Rate Notices. Alabama no longer mails paper copies of these notices, so employers who are subject to Alabama unemployment should log into the Alabama Department of Labor eGov site to access their 2023 rate. Do not assume your rate is unchanged, as rates changed drastically for many businesses in 2021 and 2022 due to the increase in COVID-19-related unemployment claims, and it’s possible COVID-19-related claims continue to impact calculations for 2023 unemployment tax rates.

The website for this login can be found here: https://labor.alabama.gov/egov/login.aspx.

I have my rate notice, what do I do now?

If your AL unemployment tax rate has changed from 2022 or is not up to date in your payroll processing software, now is the time to get it updated with your 2023 tax rate. If you use a third-party payroll processor such as PBS, ADP, Paychex, Paylocity, Paycom, etc., reach out to your third-party payroll representative for assistance in updating the rate in their software.

What if I’m a new employer and there is no rate notice?

In the state of Alabama, employers newly liable under the AL UC law are automatically assigned an unemployment rate of 2.7%, after which they are assigned an experience rating and an individualized unemployment tax rate.

Where can I go if I have more Alabama unemployment tax questions?

Visit the AL Department of Labor’s FAQ page here (https://labor.alabama.gov/uc/employer.aspx#q1) or reach out to your BMSS professional with any additional questions by calling (833) CPA-BMSS or visit our website.