Alabama Administrative Code
Title 810 - ALABAMA DEPARTMENT OF REVENUE
Chapter 810-27-1 - MULTISTATE TAX COMPACT
Section 810-27-1-.14 - Payroll Factor: Compensation Paid In This State
Universal Citation: AL Admin Code R 810-27-1-.14
Current through Register Vol. 43, No. 02, November 27, 2024
(1) Compensation is paid in Alabama if any one of the following tests, applied consecutively, are met if:
(a) The employee's service is performed
entirely within Alabama.
(b) The
employee's service is performed both within and outside Alabama, but the
service performed outside of Alabama is incidental to the employee's service
within Alabama. Service is "incidental" when it is temporary or transitory in
nature, or when the service is rendered in connection with an isolated
transaction.
(c) The employee's
services are performed both within and outside of Alabama, the employee's
compensation will be attributed to Alabama if:
1. the employee's base of operations is in
Alabama; or
2. there is no base of
operations in any state in which some part of the service is performed, but the
place from which the service is directed or controlled is in Alabama;
or
3. the base of operations or the
place from which the service is directed or controlled is not in any state in
which some part of the service is performed but the employee's residence is in
Alabama.
(i) The "place from which the
service is directed or controlled" is the place from which the power to direct
or control is exercised by the taxpayer.
(ii) The "base of operations" is the place of
more or less permanent nature from which the employee starts his work and to
which he customarily returns in order to receive instructions from the taxpayer
or communications from his customers or other persons or to replenish stock or
other materials, repair equipment, or perform any other functions necessary to
the exercise of his trade or profession at some other point or
points.
(2) The payroll factor should be determined in accordance with Rule 810-27-1-.13.
Author: Holly H. Coon
Statutory Authority: Code of Ala. 1975, §§ 40-2 A-7 (a) (5), 40-18-57.
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