Insurance

Insurance coverage is an important part of starting or expanding your business. Some information and links on unemployment compensation funds and workers’ compensation insurance are included below.

Unemployment compensation fund

The Alabama Unemployment Compensation law provides that, except for certain non-profit organizations and government entities, an employer becomes subject for taxes when any one of the following conditions are met:

  • 1. Non-Farm Business Employers – When the employer has had in employment one or more workers on some day in 20 or more different weeks, whether or not consecutive, during the current or preceding calendar year. Has paid wages of $1,500 or more in any calendar quarter during the current or preceding calendar year.
  • 2. Household Domestic Employers – Domestic employers become subject when the employer pays domestic workers in a private household, college club, fraternity or sorority house a total of $1,000 or more in cash wages in any calendar quarter during the current or preceding calendar year
  • 3. Agricultural Employers – When the employer has had in employment 10 or more agricultural workers on the same day in 20 or more different weeks during the current or preceding calendar year or has paid a total of $20,000 in cash wages to agricultural workers during any calendar quarter of the current or preceding calendar year.
  • For more information please visit the Alabama Department of Labor’s website.

Workers compensation insurance

The way by which you choose to insure your workers’ compensation liability is your decision. If you have any questions concerning Workers Compensation Insurance you can contact the Workers Compensation Division at (334) 242-2868 or toll free at 1-800-528-5166. For more information please visit the Alabama Department of Labor’s website.

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