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TAXES 11-22, Alabama Counties Income Tax Withholding

Title: I, Payroll/Personnel Manual
Chapter: 28, Section 2, Tax Formulas (TAXES)
Bulletin: TAXES 11-22, Alabama Counties Income Tax Withholding
Date: April 4, 2011
To: Subscribers of Tax Bulletins

The .45 percent Jefferson County occupational license tax was declared unconstitutional by the Alabama Circuit Court in December 2010. However, the Circuit Court ordered that employers continue to withhold the .45 percent tax while the Alabama Department of Revenue appealed the decision. In March 2011, the tax was declared invalid by the Supreme Court of Alabama.

A decision on the amount and timing of refunds of occupational taxes that were previously levied and collected by the County under the invalidated statute will be made by the Circuit Court of Jefferson County at a later date.

Beginning with wages paid for Pay Period 6, 2011, the National Finance Center (NFC) will discontinue the withholding of Jefferson County income tax. Additionally, since Jefferson County will no longer have a tax withholding, it will be removed from the tax formula.

No action on the part of the employee or the personnel office is necessary.

To view the updated tax formula, go to NFC's Home Page ( and click the Publications link at the top of the page. At the Publications page right-hand menu, click Tax Formulas and select the appropriate state from the map provided. Changes to the tax formula are identified by "Left Arrow Right Arrow."

For questions about NFC processing, contact the Payroll/Personnel Call Center (Option 3, then Option 1) at 1-800-981-3026 or EmpowHR Help Desk at 1-888-367-6955.


RANDY L. SPEED, Director
Government Employees Services Division