Alabama’s unemployment taxes go up Jan. 1 due to rising jobless rate

Alabama’s unemployment taxes go up Jan. 1

MONTGOMERY, Ala. — The taxes that Alabama businesses pay for unemployment benefits are going up Jan. 1.

State Industrial Relations Director Tom Surtees said every employer will see an increase because unemployment has gone up during the recession. Also, the balance in the state trust fund used to pay unemployment benefits has gone down.

Employers pay on a range that is based, in part, on their layoff experience. Surtees said the average tax rate per employee per year has been $64 to $512. It will go to a range of $172 to $664.

Surtees said employers will soon receive mailed notices of their new tax rates.