2022 Alabama Unemployment Tax Rate Notices

What’s happening?

The Alabama Department of Revenue has started releasing 2022 Tax Rate Notices. Alabama no longer mails paper copies of these notices, so employers

who are subject to Alabama unemployment should log into their Alabama Department of Labor eGov account to access their 2022 rate notice. Please be advised that you should check your rate. Rates changed drastically for many businesses in 2021 due to the increase in COVID-19 related unemployment claims, and it’s possible COVID-19 related claims continued to impact calculations for the 2022 unemployment tax rates.

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

If your AL unemployment tax rate has changed from 2021 or is not up to date in your payroll processing software, now is the time to get it updated with your 2022 tax rate. If you use a third-party payroll processor, reach out to your third-party payroll representative for assistance in updating your 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 Alabama 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.