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PR Mgr
January 11, 2024
Question

When is the Alabama Overtime Exemption update going to be sent out to users???????

  • January 11, 2024
  • 2 replies
  • 0 views

I've spent nearly 2 weeks, spoken to at least 10 different QuickBooks folks, both via chat and phone, wasted HOURS of my time, only to be sitting here on January 10th, still unable to properly process my Alabama payroll.  I was told by a QuickBooks Payroll Manager that the update was going to be rolled out last Friday, January 5th.  The update containing the code we need was sent out a long time ago, but the update that actually makes it work still has not been sent out.  Of all the folks I spoke with at QuickBooks payroll, only TWO even knew what I was talking about.  The questions from Alabama users all over the QuickBooks forums are filled with "canned" answers to contact Customer Service, which is a complete waste of time and will only add to your frustration!

 

QuickBooks, this is 100% unacceptable.  We are paying for a service that you are NOT providing.  There is no way to actually speak with someone that will give us an accurate answer.  There is no way to complain to anyone except to post on these forums.  I feel certain that a reply will pop up within the hour telling me that everything is working and I simply need to contact Customer Service.  It is NOT working!!!!  Who is going to help us?????

2 replies

I
Irene R
January 11, 2024

Hi there, PR Mgr. 

 

We understand the hurdle you are facing as you’re trying to process your Alabama payroll using your QuickBooks Desktop account.

 

To add your overtime withholding exemption payroll item, you can follow the steps below: 

 

  1. At the upper section of your QBDT account, select Employees and then choose Employee Center.
  2. Double-click your employee, then click on Payroll Info.
  3.  Choose Taxes, then the Other section. Add the new AL - OT Withholding Exemption item.
  4. Select OK. 
  5. Repeat steps 3-6 for each full-time hourly employee. 

 

Right then, you can run your payroll. QuickBooks will automatically calculate and exempt the amount of AL withholding on your employees’ paychecks. 

 

You can read about the Alabama overtime exemption by checking this article: Set up and track Alabama overtime exemption. 

 

If you have other concerns running your payroll in QBDT, kindly leave a comment below. The Community is always here to assist you at any time. 

P
PR MgrAuthor
January 11, 2024

You absolutely do NOT understand the hurdle we Alabama users are facing, because we are UNABLE to properly process our payroll and NO ONE will tell us when we are going to be able to do so!  How would you like it if QuickBooks said they couldn't pay you properly this month because their software wasn't working and they don't really have any idea how long it will be before it does work properly???  How about if it was you having to explain to the State of Alabama why you can't process your tax payments on time because the software we pay a lot of money for isn't working and we have no idea when it will start working???  You absolutely do NOT understand our hurdle.

I
Irene R
January 12, 2024

Hi there, PR Mgr. 

 

We've rolled out updates and added the option to exempt Alabama state income tax for overtime pay. Please see my previous reply and the resource I shared.

 

We appreciate your patience while we were working on the updates. 

M
mandak01
February 21, 2024

As a CPA myself now working in industry and handling payroll this misunderstanding by QuickBooks employees and programmers to fix this issue is completely unacceptable.  I have now called twice in February to see if there is any solution. After running multiple manual calculations for my bi-weekly payroll I am over it. The customer service does not understand the payroll item isn't working and what it is supposed to do.  Even if it were to pull amounts to the AL OT exemption payroll item (which is currently stays at 0)  the format is set to be negative number, which would erroneously pull more taxes out of the employee's paycheck. I pointed this out to them and the fact that a new issue has appeared.  Now when overtime is entered it is decreases the original AL withholding taxes rather than excluding the overtime wages from calculating AL withholding taxes.  I cannot believe such a massive company that is relied on can have such a basic issue be ignored.  They have given no one notice of this error and the lack of solutions to customers.  I had to demand to speak with someone past customer service.  I was last told I would get a level 2 to call me back after we spent 1 hour running more diagnotiscs.  It has been a week, and I have heard nothing.  I am fortunate to be knowledgably to fix it manually, but not everyone is.  For any of you out there looking for a solution you can override the withholding box by copying Al before you enter OT wages, or you can leave it alone.  Your employees will end up paying more withholding taxes than needed and you A-1 will be completely wrong, so you may need to seek an accountant to help you file if you do not understand it.  My A-1 was showing 100% of my AL withholdings were exempt after calculating nothing is the OT exempt payroll item....wow that is verywrong.

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