In Alabama, the minimum wage is $7.25 an hour. So, it’s the same as a Federal Hourly Minimum Wage.
Some states have raised their minimum wage, but not Alabama,
These state-imposed minimum wage standards are set by each state’s governing body, and employers must pay their hourly workers according to the laws around their state’s minimum wage.
And if you would work in a state without a state minimum wage or in a state with a minimum wage lower than $7.25, you are, at all times, entitled to at least the federal minimum rate of $7.25 per hour.
Alabama Paycheck calculator
How to use the Alabama Paycheck Calculator
This paycheck calculator lets you transform your hourly wage into weekly, monthly, and yearly earnings.
- First, you enter the amount of your hourly wage.
- Secondly, enter the number of hours that you work per week.
- Then, you’ll see on our calculator how that translates to weekly, monthly, or annual earnings.
How our Alabama paycheck calculator works
For lots of workers understanding their earnings and paychecks is a relatively simple process. Every week, two weeks, or month, they receive a paycheck, and by year’s end, they receive tax forms.
For workers, the process is straightforward. For people working on an hourly basis, however, things might get more challenging. That’s why we developed this paycheck calculator. It is a great tool to learn how your hourly wage compares to periodical earnings such as weekly, monthly, or annually.
|Annual wages||= hourly pay, times
40 hours, times 52 weeks.
|Monthly wages||= annual pay, divided by 12 months.|
|Weekly wages||= hourly pay, times 40 hours.|
Minimum Wage Weekly, Monthly, Yearly in Alabama
Alabama, as one of only five states, has not introduced state minimum wage laws. So the state is bound by the federal minimum hourly wage of $7.25. There are a few exceptions, however, that are addressed below.
So in Alabama, a minimum wage is $7.25 an hour; this translates to making $290 a week (40 hours) and $1256 a month.
It also translates to an annual salary of $15,080.
These results are generated by multiplying the base hourly salary by the number of hours, weeks, or months you work on a yearly basis, assuming that you’re working 40 hours per week.
What is the minimum wage in Alabama for a year?
The minimum wage in Alabama for a year is $15,080, and the take-home paycheck is $13,210.
How much tax do I pay in Alabama if I make $7.25 per hour?
If you make $7.25 per hour, you pay on average 12.35% in taxes. So, while your gross pay is $7.25, your net pay per hour is $6.35.
It means that yearly, you’ll pay $1.770 in taxes.
Please note that all numbers are approximate.
What is the income tax on $15,080 a year?
The income tax on minimum wage in Alabama is 12.35%, so while gross yearly pay is $15.080, your net pay is $13,210.
What is included in income tax?
In the calculation, the taxes taken into account include the Federal Tax, State Tax, Social Security Tax, and Medicare costs when you make $15,080.
Gross pay vs Net pay
Net pay is your earnings after all deductions. Your employer is obligated to deduct automatically the Social Security, Medicare, and federal and state income taxes from your earnings.
What is work time?
When referring to work time, it is generally accepted that we mean all the hours and time employees are spending on activities that come with their jobs.
Work hours, additionally, could include all sorts of work-related elements such as travel time (excluding commuting time), time spent on required or mandatory education or training, short work breaks as long as these don’t exceed 20 minutes, or time for attending meetings or seminars.
What are deductions?
When filing your taxes, deductions may play an important role. And though there are people that find it a lot easier to forget about filing their deductions and will simply pay that extra amount of tax; over the years, however, that will make a huge difference.
If, for example, you run a small business, there are so many things that you can deduct before taxes. There will be deductions related to your office supplies, computer repairs, building maintenance, or buying suitable clothing for your employees.
Minimum wage exceptions
In Alabama, the minimum hourly wage applies to most employees and occupations, but there are some exceptions. Let’s take a closer look.
Employees younger than 20. Under the FLSA (Fair Labor Standards Act), employees under the age of 20 can be paid a minimum hourly wage of $4.25, but only for the first 90 days that they’re employed. After that timeframe, they must be paid the full hourly minimum wage.
- Tipped employees that make at least $30 in tips on a monthly basis. These employees must receive at least $2.13 an hour provided that their hourly (including tips) equals the minimum hourly wage of $7.25.
- Full-time employed vocational students can be paid 75 percent of the federal minimum wage. Full-time employed students in service stores, retail, colleges and universities, or in agriculture can be paid 85 percent of the federal minimum wage.
- The exemption may also apply to certain disabled workers as long as they hold certificates from Alabama’s Department of Labor.
- In Alabama, overtime pay for work over 40 hours in a standard week is set at 1.5 times the federal minimum hourly wage, so $10.88 per overwork hour in a standard week.
There are no specific Alabama minimum wage laws. So all employees and employers must adhere to the federal exemption standards from the FLSA.
Please note that this post doesn’t contain legal advice. If you have any questions about Alabama’s minimum wage policies or minimum wage compliance, consult a tax professional or a tax attorney.