Payroll processing in Alabama may seem like a simple task but it can get time consuming very quickly. If you run a small business with less than 5 employees, you may choose to handle Alabama payroll services in-house. But, if you have more employees than that, it's a good idea to outsource your payroll processing in Alabama.

Outsourcing to a reputable payroll service company in Alabama gives you peace of mind that it's being handled in accordance to the law. The key is to find payroll services in Alabama that know the ins and outs of tax law and regulations in your state.

1. Understand the laws affecting payroll services in AL.

2. Learn about outsourcing payroll in Alabama to nationally-based companies.

3. Choose a locally-based payroll processing service in Alabama.

Action Steps
The best contacts and resources to help you get it done

Familiarize yourself with business payroll in Alabama

Employees in Alabama have to file the state A-4 form instead of the federal W-2. This is just one thing you must know as you hire a company to handle Alabama payroll services. It pays to be familiar with the laws so you can better choose a good payroll company.

I recommend: Check out the Alabama Department of Revenue's website for tips on revenue procedures. Also, the Department of Revenue offers withholding tax information online.

Look into Alabama payroll companies that span the nation

Many Alabama payroll service companies are actually national companies that have representatives to handle payroll in each of the 50 states. Even though they're not based in Alabama, they still have the knowledge to take care of your wage and tax reporting needs.

I recommend: SurePayroll is a national company with experience in payroll processing in Alabama. Human Resource Business Partners is based on the web serving small to mid-sized companies.

Localize payroll services in Alabama to get more individualized attention

It's essential to hire an Alabama payroll service provider that promises accurate payrolls that are on time, every time. Giving your employees late pay checks is not an option.

I recommend: Webb Payroll is located in Gardendale, Alabama. The payroll tax service in Alabama promises personalized service. Time + Plus Payroll Services makes payroll easy. You gather the information and send it through email. Then, pay checks are sent back to your company.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Ask other business people to recommend Alabama payroll companies that they trust.