Alabama Department of Industrial Relations Tax Assessment

BUSINESS COUNCIL OF ALABAMA

Alabama Employers Receiving Tax Assessment to Avoid Loss of FUTA Credit

In August, the Alabama Department of Industrial Relations informed employers statewide of a 0.07% unemployment tax assessment on their 2010 taxable wages to repay interest owed to the federal government. The state has been borrowing money from the U.S. Treasury to pay unemployment benefits for almost two years, and the interest on those loans is due Sept. 30, 2011. State law requires that the interest be repaid by an assessment on employers. The assessment totals approximately $5.60 per employee.  A 0.3% loss of FUTA credit would cost employers approximately $21.00 per employee if the interest is not repaid.

A copy of the Department of Industrial Relations news release is available at our BCA web site or download attached pdf copy to print: AL Dept of Industrial Relations Tax Assessment (37)

 Thank you for your continued support of the Business Council of Alabama.

Alabama Power Rate Decrease

Alabama Power Company, a strong supporter of both the Chamber of Commerce Association of Alabama and local Chambers of Commerce within its service area, has been granted a rate reduction of 4 percent as approved by the Alabama Public Service Commission yesterday.

The ability to generate power in a more cost-effective manner was a major factor in the rate decrease, as APCO was able to use more hydroelectric generation due to record rainfall.

This decrease will reduce an average retail customers bill an average of 7.4 percent, beginning in January 2010.  This decrease also follows the PSC’s broadening of the LPS (light, power, small) definition which can also reduce the rates of small businesses within the Alabama Power service area.

Alabama Power LPS Rate

Some 22,000 businesses in Alabama who are customers of Alabama Power Company could see a reduction in their electricity bills because of a change in the rates for LPS power recently mandated by the Alabama Public Service Commission.

The PSC voted to broaden the definition of the LPS rate, which stands for “light and power, small.” Effective January 1, 2010, thousands more small businesses will qualify for the LPS rate.

Small business managers are advised to call Alabama Power’s customer center at 1-888-430-5787 to ask whether they will qualify for the LPS rate.

Rate changes normally happen automatically, but PSC officials said this type of rate change requires customers to make sure they are on the correct rate. Moving to the LPS could save businesses at least $25 a month, the PSC said.

More information is also available from the PSC by calling (334) 242-5191.

New Alabama 938 Area Code Overlay

New Alabama 938 Area Code Overlay

10-Digit Calls In Alabama’s 256 Area Code To Begin Soon

New Area Code Will Share the Same Region as the Existing 256 Area Code

To ensure a continuing supply of telephone numbers, the Public Service Commission of Alabama (PSC) has approved the addition of the 938 area code for the geographic region currently served by the 256 area code. This is called an Area Code Overlay. Area code 938 is a telephone numbering plan code in the state of Alabama officially scheduled to take effect on July 10, 2010, as an overlay of area code 256. In order to allow people time to reprogram electronics such as phones, computers, and other devices, 10-digit dialing was made available for “voluntary compliance” across the 256 area code beginning on November 7, 2009, and with mandatory usage by June 5, 2010.

To complete local calls, the new dialing procedure requires callers to dial the full 10-digit telephone number. This means that all calls from the 256 area code that are currently dialed with 7-digits will need to be dialed using the area code + 7-digit telephone number.

However, long distance calls will remain the same. Callers need to dial 1 + area code + 7-digit telephone number whenever placing a long distance call from the 256 or 938 area code.