§ 40-18-73.1 — Provisional Employers

Alabama § 40-18-73.1

• Jurisdiction: Alabama
• Title 40: Revenue and Taxation
• Ch. 18: Income Taxes
• Art. 2: Withholding Tax; Optional Short Form Tax; Declaration of Estimated Tax
• Div. 1: General Provisions

Text

(a) This section shall be known and may be cited as the “Provisional Construction Employer Withholding Act.”
(b)(1) Subsequent to August 1, 2007, in addition to the other requirements contained in this title, all provisional construction employers shall be required to:
a. Post a bond of not less than the average estimated annual withholding.
b. Provide a minimum bond in all cases not to be less than five hundred dollars ($500) per employee.
c. Provide the bond in the form of a surety bond, cash bond, or by other bonding or credit device deemed acceptable by the Commissioner of Revenue.
(2) The Department of Revenue will issue a notice of compliance to those provisional construction employers that are in compliance with the registration and bond requirements contained in this section.
(3) If the provisional construction employer fails to provide the notice of compliance to parties upon which they have engaged in contractual relationships, such parties must escrow 10 percent of the total amount of the contract for payment of taxes due the State of Alabama.

Legislative History

(Act 2007-199, p. 234, §6.)