Birmingham Occupational Tax ID and TPA

If you pay employees working in the City of Birmingham, Alabama, your business is subject to Birmingham Occupational Tax. In order for OnPay to file and pay this tax on your behalf, you'll need to provide your Birmington Occupational Tax ID, and grant us TPA access online.

Not sure where to start? This article covers everything you'll need to know to pay employees in Birmingham.

Birmingham Occupational Tax ID

Even if you've already registered your business with the City of Birmingham, you will still need to register for an Occupational Tax ID.

Apply for a business license with the City of Birmingham Tax & License Division

The City of Birmingham Tax & License Division offers two ways to request a new business license:

• By phone: (205)254-2198
• By email: BhamTLSupport@birminghamal.gov

Once your business is licensed with the City of Birmingham, you can register for your Occupational Tax ID.

Register your licensed business with the City of Birmingham

• Go to City of Birmingham Account Registration website
• Select "Yes" to confirm you have a current Birmingham business license
• Enter your information and setup a user login, password, and email address
• In the "Indicate the tax type(s)" section of the form, check the box for Occupational Tax

Enter your Birmingham Tax ID in OnPay

Go to Company, then Payroll Taxes.

Do you pay employees in multiple states?

If so, select Alabama under "Payroll Taxes".

State and local tax obligations are determined based on worksite and employee addresses entered by you in OnPay. For this tax, if you have a company worksite in OnPay with a Birmingham address, you'll find Birmingham City Tax under "Local Taxes". Enter your Occupational Tax Withholding ID and deposit schedule.

• You'll find your 6-digit Birmingham Occupational Tax ID on letters or tax rate notices you've receive from the City of Birmingham
• If you can't find your Birmingham Occupational Tax ID, contact the Birmingham Tax & License Division at 205-254-2198 

Third-Party Administrator access

You must also authorize OnPay to act as a third-party administrator for your Tax Online account. If you already have a Tax Online account, you can skip to the next step.

Set up your Tax Online online account

1. 1. 1. Go to the Birmingham Sales Tax Online website
      2. Under "Business Account", click Create A Business Account
      3. You will need to use an email address to create your Tax Online account

Grant OnPay with access to your account

OnPay can send you a secure request through your Tax Online account for TPA access. We'll just need the email address associated with your Tax Online account. 

• Submit a request for support
• Include "TPA request" in the description
• Provide the email address used to register your business with Tax Online
• We'll reply to this email with next steps

Using the email address you provide, we'll send you a request through Tax Online for access to your account. We'll let you know when you can log in to your Birmingham account and accept the pending request.

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