Alabama_AL_overtime_pay_exemptions_2024.02_

Alabama (AL) overtime pay exemptions (2024.02)

For the tax year beginning on or after January 1, 2024, overtime pay received by a full-time hourly wage paid employee for hours worked above 40 in any given week are excluded from gross income and there exempt from Alabama state income tax. Tied with this exemption are employer reporting requirements to ALDOR. Employers are required to report the total aggregate amount of overtime paid and the total number of employees who received overtime pay. (Source: https://www.revenue.alabama.gov/individual-corporate/overtime-exemption/)

Follow these instructions to set up the new overtime pay codes for the state of Alabama. 

 

In this section: 

How do I set up the over 40 hours, overtime pay code? (2024.02)

How do I set up the over 40 hours, straight pay code? (2024.02)

 

 

 

 

 

 

 

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