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.
$7.25/hr
2.70%
0.65% -6.50%
$8,000
Enter salary and state, then click Calculate
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.
Disclosure: some payroll links may be affiliate links, at no extra cost to you.
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.
Compare tools that can help run payroll in Alabama.