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Alabama Overtime exemption ..... we really have to figure overime manually?

Forum|Forum|2 years ago
January 3, 2024
2 replies
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The new Alabama overtime exemption is a nightmare.
The QB instructions need clarification. I am supposed to enter the OT hours and then go to actions and call them exempt?
There has to be better way! This is so subject to human error.

Please tell me I am wrong.

Thanks
L

QuickBooks Online Payroll

Best answer by Clark_B

Hello there, @LDO.

We have an update on how you can set up overtime pay exempt from Alabama (AL) withholding tax. I'll guide you on how to do this below.

First, you'll have to manually calculate the tax-exempt pay amount and then enter the tax-exempt amount in your QuickBooks Online Payroll (QBOP) account.

Here's how:

Go to Payroll, then Employees.
Select Run Payroll.
From your employee list, select Actions, then Add tax-exempt pay.
Enter the tax-exempt pay dollar amount.
Select Add.
Repeat steps 3 - 5 for each employee with tax-exempt amounts.

For the tax-exempt calculation, follow the example guide in this article: Set up and track Alabama overtime exemption.

If you want to view the amounts exempted, you can pull up the Paycheck List or Payroll Details report.

I'll always be here, ready to back you up if you have any further questions about the Alabama overtime or other QBO-related concerns. Please let us know any time in the thread. Keep safe!

Clark_BAnswer

Hello there, @LDO.

We have an update on how you can set up overtime pay exempt from Alabama (AL) withholding tax. I'll guide you on how to do this below.

First, you'll have to manually calculate the tax-exempt pay amount and then enter the tax-exempt amount in your QuickBooks Online Payroll (QBOP) account.

Here's how:

Go to Payroll, then Employees.
Select Run Payroll.
From your employee list, select Actions, then Add tax-exempt pay.
Enter the tax-exempt pay dollar amount.
Select Add.
Repeat steps 3 - 5 for each employee with tax-exempt amounts.

For the tax-exempt calculation, follow the example guide in this article: Set up and track Alabama overtime exemption.

If you want to view the amounts exempted, you can pull up the Paycheck List or Payroll Details report.

I'll always be here, ready to back you up if you have any further questions about the Alabama overtime or other QBO-related concerns. Please let us know any time in the thread. Keep safe!

L

LDOAuthor

This was NOT solved.... Why was it marked solved?

R

Rea_M

Other users may have found the steps to be effective, LDO. That's why it was marked as resolved.

To ensure we can provide the solution you require, I'll need more details about your experience setting up QuickBooks Payroll to track overtime pay exemption for Alabama (AL).

Could you specify the stage of the setup process that's causing you trouble? Any additional info will help me provide the appropriate resolution of the issue.

I'm looking forward to your reply. Thank you in advance, and I'm also looking forward to working with you again.

M

MT55

I agree with "L". There is an entry in payroll to enter the overtime hours, which calculates the overtime - but this won't work? If you have an Alabama employee and they have overtime entered, why is this not sufficient for Quickbooks to deem this as exempt Alabama pay? We have only one Alabama employee, and if we had several, I would be looking for another payroll service immediately. This solution makes no sense to me.

L

LSPcpa

Totally agree! This is absolutely absurd! I have over 50 Alabama EE's I'm calculating PR on. For every.single.one., I have to dig down into their prelim calculation, get the OT total, and go manually type it in. The LEAST QBO can do is put the gross OT amount below the OT hour input box so we don't have to look each one up.

QBO - you continue to go up and up on $$, but provide no way to make payroll prep efficient.

Do better!

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