Non-profit organizations are liable for Alabama Unemployment Tax unless they are exempt from income tax under section 501(a) of the Internal Revenue Code and are classified as a Section 501(c)(3) exemption organization.

Non-profit organizations that are classified under Section 501(c)(3) become liable for Alabama Unemployment Taxes only after they have had four or more individuals in employment in each of 20 different weeks within either the current or preceding calendar year. For additional information on non-profit organizations, contact the Status Unit at 334-954-4730 or status@workforce.alabama.gov.