There are a number of forms required when you are self-employed or own your own business.

Income Taxes

Alabama is pushing to have all payments come to them through My Alabama Tax (MAT). Individual, business, sales tax, all of it.

Estimated and Self-Employment Taxes

Alabama also requires estimated taxes to be filed with the 40ES.

Sales Taxes

If you sell goods rather than offer services, you will have to pay sales tax to your state. Alabama has a list of which goods are exempt from sales tax in Alabama, and also the sales tax rates and due dates.

If you have employees...

• If you are hiring contract laborers, you will need to file a Form 1099-MISC on every contract laborer paid and transmitted with Form 1096 Annual Summary and Transmittal of U.S. Information Returns.
• If you are hiring employees, you will need to file a Form W2 on every employee you paid and transmitted with Form W3 Transmittal of Wage and Tax Statements.

Withholding Taxes

State: Generally, all employees must have State taxes withheld from their paychecks.

Local: Some cities, towns, and localities must have taxes withheld as well.

Withholding taxes are reported with the Form A-1 and paid by check, or reported and paid through My Alabama Taxes.

Unemployment Taxes

The State Unemployment Tax Act (SUTA) is not withheld from employee wages and are paid by the employer. Unemployment is reported at the Alabama Department of Labor.