(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.
Structure Code of Alabama
Title 40 - Revenue and Taxation.
Article 2 - Withholding Tax; Optional Short Form Tax; Declaration of Estimated Tax.
Division 1 - General Provisions.
Section 40-18-70 - Definitions.
Section 40-18-71 - Withholding Tax.
Section 40-18-72 - Included and Excluded Wages.
Section 40-18-73 - Withholding Certificates.
Section 40-18-73.1 - Provisional Employers.
Section 40-18-74 - Payment of Amounts Withheld.
Section 40-18-75 - Statement to Be Furnished Employee.
Section 40-18-76 - Liability for Tax Withheld.
Section 40-18-77 - Refund to Employer.
Section 40-18-78 - Credit for Tax Withheld.
Section 40-18-79 - Overpayment of Tax.
Section 40-18-81 - Optional Short Form Tax.