Alabama Department of Workforce

2004 Unemployment Insurance Tax Rate Remains Same

The 2004 Unemployment Insurance (UI) tax rates are under the same schedule fees that were in effect in 2003.

Schedule C:
Minimum- .90 percent on the first $8,000 of wages earned by each employee.
Maximum rate - 6.50 percent on the first $8,000 of wages earned by each employee.

Tax rates are determined annually by state law and can fluctuate according to the level of reserves in the State Unemployment Compensation Trust Fund. Under Alabama law, there are four tax rate schedules: A,B,C, and D. The purpose of the schedules is to assist in recovery of benefit costs so that the trust fund will neither become depleted nor collect excessive revenue.

Only 12 states have lower UI employer tax rates than Alabama, while 11 states have the same rate. This puts Alabama's UI employer tax rate in the bottom third of the nation.