Virtually all employers are subject to unemployment insurance taxes under Alabama’s unemployment compensation law (AL Code Sec. 25-4-1 et seq.). For example, coverage extends to individuals and organizations that:
• In either the preceding or current calendar year paid wages of $1,500 or more in any calendar quarter or had at least one employee for some portion of a day in each of 20 different weeks;
• Are subject to the Federal Unemployment Tax Act (FUTA);
• Acquired at least 65 percent of the business of a covered employer;
• Are nonprofit organizations that had four or more people working for some portion of a day in each of 20 weeks in either the current or preceding calendar year;
• Paid wages of $20,000 or more for agricultural labor in any calendar quarter in either the current or preceding calendar year, or employed 10 or more people doing agricultural labor for some portion of a day in each of 20 different weeks in either the current or preceding calendar year;
• Paid wages of $1,000 or more for domestic service in any quarter of the current or preceding calendar year; and
• Are Indian tribes (AL Code Sec. 25-4-8).
The law excludes certain services from coverage, including, for example, services provided by:
• Students working for schools, colleges, or universities;
• Students working for work-study programs;
• Spouses of students working for the school;
• Real estate and insurance salespersons;
• Certain newspaper distributors (e.g., minors); and
• Elected officials, members of a legislative body or the judiciary, and policymakers who work no more than eight hours per week (AL Code Sec. 25-4-10).