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        GENERAL INFORMATION FOR PREPARING EMPLOYER'S OCCUPATIONAL TAX RETURNS

DUE DATE OF TAX. The tax imposed by Ordinance No. 97−184, the Occupational Tax Code of the City of Birmingham,
shall be due and payable to the City monthly on or before the twentieth (20th) day of the month next following the end of
each such monthly period; provided that, if the total amount deducted from payments made to or due all employees of
an employer is less than fifty ($50.00) dollars during each calendar month of the previous calendar year, then such
employer may elect, for the current calendar year, to remit such deductions to the City for the quarterly periods on or
before the twentieth (20th) day of the month next following the end of such quarterly period. The date of the United
States postmark stamped on the cover in which a return or payment is mailed shall be deemed to be the date of
delivery, or the date of payment, whether mailed to the Finance Department or to the department's designated depository.

UNTIMELY FILING. Any return or payment not received in accordance with the provisions of Section 5.4 of Ordinance
No. 97−184 shall be deemed untimely filed and shall be assessed applicable penalties and interest, as prescribed by
Section 13 of Ordinance No. 97−184. To avoid penalties, returns should be filed by the due date, and any tax amounts
due should be timely paid. Please note that the penalties outlined in Section 13 include, but are not limited to, a penalty
of 10% of the amount of tax due or $50, whichever is greater, which may be assessed for failing to timely file returns.

PERSONS TAXED; PERSONS LIABLE. A license fee is imposed upon any person who engages in or follows any trade,
occupation or profession within the City of Birmingham when the relationship between the individual performing the
services and the person for whom such services are rendered is the legal relationship of employer and employee at the
rate of one percent (1%) of compensation due such employee. An employee shall include, but not be limited to, both
residents and nonresidents, an officer or partner of a corporation or firm if such officer or partner receives a salary for his
personal services rendered in the business of such corporation, and governmental employees performing services within
the City, pursuant to Section 2(a) of Ordinance No. 97−184, the Occupational Tax Code of the City of Birmingham. The
tax so imposed shall be deducted from each payment due each employee by his/her employer. When a monthly or
quarterly return is not filed by an employer and the occupational license fees are not paid to the City by such employer
monthly, as required by Section 5.1 of Ordinance No. 97−184, the employee for whom no return has been filed and no
payment has been made shall file a return with the Director of Finance on or before the twentieth (20th) day of the month
next following the end of each such monthly or quarterly period.

WHERE WORK DONE OR SERVICES PERFORMED BOTH WITHIN AND/WITHOUT THE CITY. When compensation is
earned as a result of work done or services performed both within and without the City, the occupational license fees
required under Ordinance 97−184 shall be computed by determining upon the oath of the employer, or if required by the
Director of Finance upon the oath of the employee, that percentage of the compensation earned from the proportion of
the work which was done or performed within the City.

REQUEST FOR RULING ON DETERMINATION OF TAXATION.     Any taxpayer may request a copy of the Occupational Tax
Rules and Regulations which provides a general listing of items defined as gross receipts and compensation as well as
a general listing of items not constituting gross receipts and compensation for any work done or personal services
rrendered in any trade, occupation, or profession within the City. In addition, any taxpayer may also request a ruling on
the determination of whether items of compensation are to be included in or are not to be included in gross receipts
and compensation as a measure of the taxes due and payable to the City. Such request shall be made in writing to
the Finance Department, and shall contain all pertinent facts and documentation relating to the item(s) in question.

INSTRUCTIONS FOR PREPARING THE OCCUPATIONAL TAX RETURN (PR−1)

ITEM 1: Enter the total number of employees subject to Birmingham Occupational Tax.

ITEM 2: Enter total salaries, wages, commissions, incentive payments, bonuses, and other compensation paid
        to taxable employees during the period for which the return is prepared. If no salaries, wages, or other
        compensation were paid during the month, show "0" (zero) and return the form with an explanation.

ITEM 3: Enter the amount of compensation paid to taxable employees for services rendered outside the City of
        Birmingham.

ITEM 4: Determine the net taxable compensation (total gross compensation on line 2 minus total deductions on
        line 3) and enter the difference between items 2 and 3 on line 4.

ITEM 5: Compute tax by multiplying the net taxable compensation on line 5 by one percent (1%).

                               MAKE CHECKS PAYABLE TO: City of Birmingham
                               MAIL TO: CITY OF BIRMINGHAM
                                        REVENUE DIVISION
                                        P.O. BOX 830638
                                        BIRMINGHAM, ALABAMA 35283−0638

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EMPLOYERS RETURN OF OCCUPATIONAL TAX WITHHELD
Form P.R.−1
CITY OF BIRMINGHAM, ALABAMA ORDINANCE NO. 97−184 (INSTRUCTIONS ON NEXT PAGE)
* 1. NUMBER OF TAXABLE EMPLOYEES____MONTH OF_____ I hereby certify that the information and statements contained
herein and any schedules or exhibits attached are true and
** 2. TOTAL SALARIES, WAGES, COMMISSION, AND OTHERCOMPENSATION PAID ALL TAXABLE EMPLOYEES........ $ correct, for the month ending
3. LESS NON−TAXABLE ITEMS (COMPENSATION, PAID FOR
SERVICES OUTSIDE OF BIRMINGHAM) ................ MONTH YEAR
(Please Attach Letter of Explanation)
4. TAXABLE EARNINGS (ITEM 2 MINUS ITEM 3)............
5. ACTUAL WITHHELD IN MONTH AT 1% ................ $ SIGNATURE
6. Add PENALTY for failure to timely file 10% (minimum $50.00) . $ _____
Add PENALTY for failure to timely pay 10% (minimum $3.00) . $ _____
Add INTEREST of 1% per month ................ $ _____ OFFICIAL TITLE DATE
TOTAL AMOUNT OF PENALTIES AND INTEREST − Total of Item6...... A monthly return must be filed on or before the twentieth day
7. TOTAL AMOUNT FOR WHICH REMITTANCE IS ATTACHED.... $ of the next month.
Make check or money order payable to:
CITY OF BIRMINGHAM
Mail To:
City of Birmingham
P O Box 830638
Birmingham, Alabama 35283−0638
If NAME or ADDRESS has changed, please complete "CHANGE OF TAXPAYER INFORMATION" form.
* Number of employees MUST be shown.
** If no wages were paid this month, mark "0" and return this form with explanation.

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                      INSTRUCTIONS FOR PREPARING AND FILING FORM P.R.−1

Each employer of one or more persons must withhold an occupational tax at the rate of 1% from, gross salaries,
wages, and commissions paid for work or services performed within the City of Birmingham. All employees are
subject to the license tax except domestic servants employed in private homes.

MONTHLY RETURN
A monthly return must be filed and the tax paid by the twentieth day of the month following the close of the calendar
month. An employer shall be liable to court action for failure to file a return and/or to pay the tax, or for filing a
fraudulent return. Interest and penalties are provided for late filing.
Item 1. Enter total number of employees subject to Birmingham occupational tax.
Item 2. Enter total salaries, wages, commissons, incentive payments, bonuses and other compensation
        paid to taxable employees during the month for which the return is prepared. If no salaries, wages
        or other compensation were paid during the month, show "0" and return form with explanation.
Item 3. Enter the amount of compensation paid to taxable employees for services rendered outside the City
        of Birmingham.
Item 4. Represents the difference between Items 2 and 3.
Item 5. Shall be the actual tax withheld at the rate of 1%.

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RECONCILIATION OF RETURNS OF BIRMINGHAM
Form P.R.−2 OCCUPATIONAL TAX WITHHELD FROM W AGES
W ITH W ITHHOLDING STATEMENTS FOR
CITY OF BIRMINGHAM, ALABAMA ID# Year ORDINANCE NO. 97−184

1. Total number of employees as represented by
employee's statements (or list) transmitted
herewith......................

2. Total Medicare Earnings from W−2's,
W−2 FORMS MUST BE ATTACHED Year−End Employee Earnings
Statements, etc.

Name, address of employer 3. Total Birmingham Taxable
Earnings

4. Difference (Line 2 minus Line3)

Visit the City of Birmingham's Official Website
www.informationbirmingham.com

5. SUMMARY
Month W−2 Taxable Earnings W−2 Tax Withheld Tax Paid Comments
(total must equal line 3) @ 1%
January

February

March

April

May

June

July

August

September

October

November

December

TOTALS

IMPORTANT NOTE: The original of this form must be filed on or before January 31st of the succeeding tax year. Any discrepancy (Line #4 above) between
Total Medicare Earnings and the City of Birmingham Taxable Earnings must be fully explained in an attached statement. If the difference indicated is
a balance due to the City, please enclose the payment herewith. If, on the other hand, the difference indicated is an overpayment of tax, you must submit
herewith, or under separate cover, a formal request for a refund. Remittances should be made payable to "City of Birmingham" .

Mail to: City of Birmingham
Tax and License Administration Division
710 N. 20th Street, Room TL−100
Birmingham, AL 35203

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