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L
LDO
January 6, 2024
Question

Would this work? Alabama overtime

  • January 6, 2024
  • 1 reply
  • 0 views

We all know the new Ala OT exemption is a huge problem.   I am wondering if this would work:

Rum 2 payrolls each week

1.  Run payroll with all hours… do not submit.

2.  Record everyone’s federal w/h and any local tax on a notepad.

3. Remove OT hours from QB

4.  Software will recalculate taxes

5. Manually change the fed w/h to what you wrote on the note pad.
6. Submit payroll

7 do a 2!d payroll run, entering only overtime hours.  Remove (zero out) any fed and state taxes. 
8. Submit 2nd payroll rum,

 

yes this will be more work, but it will ensure the regular hours are taxed correctly snd thar overtime hours are not taxed with Alabama tax,

 

msybe I could do this until QB gets their problem fixed

LDO

1 reply

L
LeizylM
January 6, 2024

I understand the concern about the new Ala Overtime (OT) exemption, LDO. 

 

After reviewing the steps you've provided, yes, you can use it in the meantime. You'll have to make sure that regular hours are taxed correctly. Still, I suggest consulting your accountant. They can provide guidance based on your specific business needs and accounting practices.

 

Also, I'm adding this article about the available reports in QuickBooks Online (QBO) that you can use to verify your payroll information before filing taxes: Run payroll reports.

 

You're always welcome in the Community should you have further concerns about running payroll in QBO. Take care. 

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