Skip to content

REPORT: AL Unemployment Tax to Nearly Double in 2021

REPORT: AL Unemployment Tax to Nearly Double in 2021

January 20, 2021 Last Edit: June 5, 2025

REPORT: AL Unemployment Tax to Nearly Double in 2021

The state unemployment tax will nearly double in 2021.

Alabama Political Reporter says the average will go from an average of $52 per employee to $100 or more, an increase of about 92%. Alabama Department of Labor spokeswoman Tara Hutchinson told the online publication, “At this point, I don’t believe there’s anything that can be done in time to prevent that rate increase. There just isn’t enough time.”

She blamed the increase on the spike in unemployment claims paid out in 2020 because of COVID-19 pandemic and Labor’s decision to reinstate fees that it initially waived at the start of the pandemic.

NFIB State Director Rosemary Elebash said reducing the unemployment tax rate will be one of the small business community’s top priorities when the 2021 session of the state legislature convenes Feb. 2. 

 

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Receive our newsletter and email notification
Knowledge is power. Let us help you stay informed with breaking legislative news, regulatory updates, business tips, and more.

Related Articles

In Front of the Massachusetts State House in Boston
Related
June 18, 2026
NFIB Reacts to MA Supreme Judicial Court Decision on Ballot Question Rolling Back the Income Tax Rate to 4%
NFIB had filed an amicus brief against the lawsuit in April.
Read More
Long rectangular conference table with attendees on both sides, flags at the end, and name placards for a formal meeting in a stately room.
Related
June 17, 2026
Small Business Owners Bring Viewpoint to Capitol Hill
NFIB members traveled to Washington D.C. for NFIB’s Fly-In to attend meetings with members of Congress. Take action to amplify their voices!
Read More
Car radio to illustrate article of state director on the radio.
Related
June 17, 2026
NFIB Ads Urge Rep. Mike Rogers to Permanently Repeal Beneficial Ownership Information Mandate 
Radio, digital ads call on Congress to protect small business owners’ privacy.
Read More
Related
June 15, 2026
Rhode Island Capitol Update
Rhode Island 2026 legislative session wraps.
Read More

© 2001 - 2026 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy Policy | Accessibility