Overview

Capital
Montgomery
Currency
United States Dollar (USD)
Date Format
mm/dd/yyyy

Taxes

Employer
6.20% - Social Security Tax
1.45% - Medicare Rate
Up to 4.12% - State Taxes
Employee

Minimum Wage

General

Minimum wage is $7.25/hr

Payroll Contributions

Social Security

6.2% of employee cost

Pension Fund

Employer: has to contribute between 10.82%-13.89% of the employee's wages dependent on occupation.
Employee: has to contribute 10.82%-13.89% of his/her wages dependent on occupation.

Health Insurance

Federal:

Employer: Medicare - 1.45%

Employee: Medicare - 1.45% (additional 0.9% contribution for employees earning less than $200,000)

Unemployment Insurance

Federal:

Employer: 6.0% and maximum taxable earnings are $7,000

State:

Employer: 2.7%

Employee: Voluntary contributions permitted.

Leave

Public Holidays

There are 12 public holidays, however private employers are not required to provide either any holidays off or additional pay for work during holidays.

Termination

Termination Process

An employee can be terminated at any time as they are considered “at will employees”. No specific termination policies.

Notice Period

According to Alabama Labor Law, employment can be terminated with no notice. However, if there is an employment contract than the stated notice is required.

Severance Pay

There is no official state or federal law regarding severance payments. It depends on the company’s policies.

VAT

General

4%