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In a bill signed by Governor Kay Ivey on Tuesday, February 1, 2022, the Alabama state unemployment trust fund will be replenished with funds from the American Rescue Plan Act (ARPA). On Tuesday, January 18, 2022, Governor Ivey called the Alabama Legislature into a special session to appropriate money from ARPA in an effort to continue to make an economic comeback. According to the bill, up to $79,500,000 will be allocated to the trust fund with the intent to reduce unemployment tax rates for 2022. The Alabama Department of Labor Unemployment Division has not yet mailed tax rates out to employers for 2022. While there hasn’t been a definitive date for mailing these documents, if the state follows last year’s schedule, the rates will be mailed any day. Alabama is not one of the states currently faced with a Title XII advance, so any monies appropriated from ARPA should have a direct impact on employers’ tax rates for 2022 and not be needed to repay loans.

We will keep you updated on additional changes for this state, as well as any others that may arise.

Contact your Tax Analyst if you receive a 2022 Unemployment Tax Rate Notice or if you have questions regarding your state unemployment tax accounts.


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