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BamaGirl777
February 28, 2024
Question

Alabama OT Withholding - Screwed Up and Reducing State Taxes

  • February 28, 2024
  • 2 replies
  • 0 views

I have spent hours on the phone with support. They have rebuilt data, installed and uninstalled the EZ Setup Wizard that was a failure, verified employees had the OT exemption added to the employees, verified my OT was setup correctly, and after hours each time, to say their engineers are aware of the issue and the update with the solution is on its way. If I try to pay anyone even an hour of OT, it begins to reduce the state tax liability. The more OT, the more the liability shrinks! The employee owes the state tax, OT does not reduce what they owe, only makes that income exempt. I can’t wait for the canned QuickBooks response!

2 replies

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Ivan_G
February 28, 2024

Hello there, BamaGirl777.

 

Upon review, it appears that my colleague has already addressed your question. Please refer to this link for additional information: Alabama Overtime Exemption - any resolution?

 

You can always reach out here in the Community space if you have additional QuickBooks-related queries. We're always here to help.

BigRedConsulting
BigRedConsulting
February 28, 2024

Yes, I noticed the same thing when helping a customer: The more overtime you add to the check, the less the state withholding, until it finally reaches 0.00.

 

Not sure how that got by Intuit's testing cycle. Seems stupidly obvious that the more an employee earns, the more the state tax should be...  I guess somebody didn't drink enough coffee that day.

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