Alabama OT nightmare ... we pay OT over 32 hours worked

The state website says that overtime exemption is only for hours worked over 40.

Here's a little work around that I HOPE will work until QB's gets their stuff together and makes their program compliant with all state taxes!!  We also have weird OT pay (our employees don't always work 40 hours before they get OT, Sat is always time and half and Sunday is always double time, regardless of what is worked during the week and some jobs the employees receive OT for any hours over 8 hours per day - see examples below)

I created new overtime payroll items and the new pitem does not add to the AL WH total, but it does deduct from it, even if the total hours entered on the employees payroll is not totaled to 40 hours. 

So, #1 - Quickbooks is not calculating hours over 40 hours for the amount to NOT be taxed by AL WH, regardless of what the pay rate is, like it says it will in the HELP ARTICLE  they are using to help people set up the new AL OT WH:

Understand AL overtime exemption

• Overtime pay is exempt only for full-time hourly employees.  It doesn’t include salaried employees.
• Work performed over 40 hours in a week is exempt, whether it’s paid as overtime or regular pay.
• The exemption applies to all paycheck dates on or after January 1, 2024 through June 30, 2025. 
• Overtime pay earned in excess of 8 hours a day under collective bargaining agreements aren’t exempt if your employees don’t work more than 40 hours in the week. 
• This info needs to be reported on either a monthly or quarterly basis, and on Form W-2.

Our employees do not have to work 40 hours to receive overtime - saturdays are always time and a half, Sundays are always double time, and some jobs anything over 8 hrs each day is overtime. 

#2- I need QB's to calculate 40 hours (regardless if it's 40 hours straight time; or if it's 30 hours straight time, 4 hours time and half, and 6 hrs double time) before it stops calculating AL WH on any other overtime hours that the employee works in a week. (example - employee worked 46 hours total - 30 hours straight time, 10 hours time and half and 6 hours double time - in this scenario the 30 hrs straight time and 10 hours time and half should be taxed, the 6 hours double time should not be taxed by AL WH). 

#3 - We all need QB to calculate the aggregate gross OT pay total that is NOT being taxed and this info to be able to be ran on a report and put on our AL WH tax forms and W2's, like it says that QB's is going to do in the Help Article

     Report the tax-exempt amounts to AL 

   This info needs to be reported on either a monthly (AL A-6) or quarterly (AL A-1) basis, and on Form W-2.

The work around I have come up with for right now until QB's gets their stuff together and can do it for us, like they say they will, is this:

Here’s my work around so I can run payroll tomorrow and until QB fixes this (***I added new wage related payroll items, which did not end up calculating AL WH):

I have 1 straight time payroll item (which does calculate AL WH)

I have 2 time and half payroll items (1 old one (1.5x) which IS calculating AL WH; and 1 new one that I just added (OT 1.5x (exempt)) which is NOT calculating AL WH <but it is deducting from AL WH, which I’m not sure it should be doing>.

I also have 2 double time payroll items (1 old one (2x) which IS calculating AL WH; and 1 new one that I just added (dbl time 2x (exempt)) which is NOT calculating AL WH <but it is deducting from AL WH, which I’m not sure it should be doing>.

Since I need AL WH to calculate hours up to 40 hours regardless of if its straight time, OT, or double time, I will use the 1 straight time pitem for all straight hours, then I will use the old 1.5x pitem and 2x pitem to add any time that is needed to get the total hours to 40 hours – all of these pitems will calculate AL WH….THEN I will use the new pitems (OT 1.5x exempt and dbl time exempt) for any hours over 40 hours, since these pitems are NOT calculating (adding) to AL WH.

Then I can run a report on just the new pitems and see how much the gross totals were that AL WH was NOT calculated on, which is what we need for the AL WH tax forms.

Maybe this will help someone else set up their payroll for time being. I am worried that it is deducting some from AL WH instead of not deducting any amount at all, but the amount it deducts really is not that much and the main thing is that it does not add to AL WH when I enter OT hours after the 40 hours that should be calculating on AL WH)