State Unemployment Tax Act in Alabama
Issue Overview: The purpose of this legislation is to make a technical amendment to correct language in the Code of Alabama. This bill is required by the U.S. Department of Labor pursuant to federal law for Alabama's unemployment law to remain in conformity with federal law. This legislation must pass to avoid severe penalties to Alabama employers. Failure to pass this amendment could result in the loss of the current FUTA tax credits for all employers in this state. Under current law an employer pays $56 per employee per year. If the tax credit is lost, the tax would increase to $434 per employee annually. The increase to Alabama employers could increase to about $700 million annually.
NFIB Position: NFIB supports this legislation.
Issue Status: This legislation was introduced by Rep. Frank McDaniel (HB 40) and Sen. Roger Bedford (SB 147).
What to Say: Tell your legislator to support the "SUTA" bill.
