Based on Alabama Department of Revenue, for the tax year beginning on or after January 1, 2024, overtime pay received by a full-time hourly wage paid employee for hours worked above 40 in any given week are excluded from gross income and therefore exempt from Alabama state income tax. Tied with this exemption are employer reporting requirements to ALDOR. Employers are required to report the total aggregate amount of overtime paid and the total number employees who received overtime pay. (Refer to https://www.revenue.alabama.gov/individual-corporate/overtime-exemption/ for the most up-to-date information).
In Human Resources, RFMS allows the state exemption of overtime hours as shown below:
The overtime information can be found by going to Human Resources > Reports > Pay History Reports:
Comments
Article is closed for comments.