AL State Calculator

Alabama Employee Cost Calculator

Calculate the true cost of hiring an employee in Alabama. Alabama employers pay state unemployment insurance ranging from 0.65% to 6.5%, with new employers typically paying 2.7%. Alabama follows the federal minimum wage of $7.25/hour.

Minimum Wage

$7.25/hr

SUI Rate (New)

2.70%

SUI Range

0.65% -6.50%

SUI Wage Base

$8,000

Calculator
$
Results

Enter salary and state, then click Calculate

Next step after calculating costsAL UI: 2.70% on first $8,000

Ready to run payroll in Alabama?

Once you know the true employee cost, the next job is paying people correctly. Full-service payroll software can help with pay runs, tax filings, W-2s, new-hire reporting, and state unemployment details.

Automates federal and state payroll tax workflows
Useful before the first employee payroll run

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Key Facts About Hiring in Alabama

No state income tax

SUI rates range from 0.65% to 6.5%

New employers pay 2.7%

Federal minimum wage applies

Frequently Asked Questions - Alabama

Calculate Alabama Costs by Industry

Workers' compensation rates, turnover, and compliance requirements vary significantly by industry. See industry-specific costs for Alabama.

Make Payroll Effortless

Automate payroll taxes, direct deposits, and compliance.

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