AL OT Exemption

Let's make sure you can set up the Alabama exemption accurately, Krissy.

Sometimes you'll experience issues with your state and local tax calculations. You'll have to make sure to get the latest tax table update and to update QuickBooks to the latest release. To get the latest tax table, follow the steps provided below: 

1. Select Download Entire Update.
2. Click Update. An informational window appears when the download is complete.

Once done, add the new AL OT Withholding Exemption payroll item.  I'll guide you on how:

1. Go to Employees, and select Employee Center.
2. Double-click your employee.
3. Select Payroll Info.
4. Select Taxes, then the Other tab. Add the new AL - OT Withholding Exemption item.
5. Click OK.
6. Repeat steps 3-6 for each full-time hourly employee.

Moreover, QuickBooks offers a variety of reports for your payroll and employee reports that help you manage payroll and keep track of employees' expenses. For more details, check out this article: Customize Payroll And Employee Reports.

You can always get back to us if there's anything else that need about setting up state taxes. The Community is always right here to help you all the time.

I have done all this and it’s still not computing it accurately 

I have done this and it’s still not computing accurately. 

Thanks for following up after trying the troubleshooting to correctly set up the new overtime rules for the state of Alabama, KrissyPhil. I appreciate you taking the time to circle back with updates.

I understand that even after the troubleshooting, you are still seeing the same incorrect overtime calculation result for employees located in Alabama.

In this case, I recommend reaching out directly to our QuickBooks Payroll Support team for further investigation.

The specialists there have additional tools and access to fully diagnose why the overtime exemption is not working as expected. They will be able to get to the bottom of this.

Here's how to reach out to them: 

1. Go to the Help menu, then select QuickBooks Desktop Help/Contact Us.
2. Click Contact Us at the bottom of the pop-up screen.
3. Give a brief description of your issue, then select Continue.
4. Sign in to your Intuit account and select Continue and then Continue with my account.
5. We'll email you a single use code. Enter your code and select Continue.
6. Select between chat with us or Have us call you.

I also wanted to share this help article that offers guidance and resources for your year-end tasks and tax filing with QuickBooks Payroll just in case you need it: Year-end Checklist For QuickBooks Desktop Payroll.

This article contains a comprehensive checklist covering all the steps involved in payroll year-end processes like preparing W-2s, submitting forms, closing the year, and more.

Please never hesitate to reach back out if you require any further guidance or assistance with running payroll through QuickBooks, KrissyPhil. Our team is always readily available to help explain features, provide tips, troubleshoot issues, or answer any questions that come up.

I have done this and I have talked to 3 people in the QB support team and nobody has been able to fix it. I need someone who understands tax laws to understand my problem. Not someone who just reads the prompts off of a screen. I need a higher tier support person. 

I had the same issues yesterday and still waiting on a fix from them. My payroll is scheduled to be done today and if they do not have fix then I will have to run it the way it is.

Hello there, Krissy and Annette69. This isn't the service we want you to experience. I want to ensure you get your OT AL Exemptions set up correctly.

Upon further checking, I have found that a case has been created for both of you. I recommend that you contact our support again to get the latest updates regarding your concerns. 

Moreover, you can also seek advice from an accountant or a tax officer to get further information on how to proceed with this matter.

Additionally, here's a helpful article on getting a closer look at your business' finances: Run payroll reports.

If you need further assistance regarding your payroll, please don't hesitate to reach out to me. I am always here to provide assistance. Take care!

My payroll is also suppose to be done.

The only thing I can think to do is to run the OT on a separate check and zero out the state.

Which is fine, but just more hassle unfortunately. 

I have reached out to my accountant and they do not process payroll through QB for anyone so they were no help either.. I really need a higher support level tech. 

I downloaded the update with the wizard and couldn't set up the wizard at the time and now I can't find it anywhere. I have payroll tomorrow and need to get this set up. I understand your frustration. What does the wizard do and can I do it manually and how?

Welcome to the Community space, @dbazor. I'm here to provide you with information regarding the wizard in QuickBooks Desktop (QBDT).

The wizard launches and takes you through setting up the AL - OT Withholding Exemption payroll item. It's designed to make the setup process easier and more user-friendly.

Yes, you can do it manually, but this is a one-time process only. Since you could not set it up successfully, the wizard is no longer prompting. In this case, you'll need to contact our customer support team to get the necessary steps to follow. 

Here's how to get in touch with them: 

1. Go to Help, then select QuickBooks Desktop Help/Contact Us.
2. Click Contact Us.
3. Enter a description of your issue, then hit Continue.
4. Sign in to your Intuit account, select Continue, then Continue with my account.
5. We'll email you a single-use code. Enter your code and select Continue.
6. Select to chat with us or Have us call you.

Please note that phone support may be limited due to volume.

Additionally, you can refer to this article about personalizing the reports to get the necessary information: Customize payroll and employee reports.

Let me know if you need further help in updating your payroll. I'll be here to assist you in any way I can. Have a great day.

I still have no solution to my problem.

I have "roaming" employees and cannot put all of my OT on line item.

The OT has to be separated by cities because of the different local taxes we have in our states.

Please help. 

Can someone tell me when setting up thru the wizard, when it prompts you for an account number, is this for a General Ledger account or you Alabama tax number?

Using the wizard to set up, it is prompting me for an account number. Is it asking for a general ledger account  # or our Alabama State payroll acct number?

Thanks.

Thank you for following up on this thread, KrissyPhil, and @pmckenzie. 

I acknowledge the significance of setting up the AL OT Exemption for your business. It ensures the accuracy of your tax and form information, especially when you stay compliant with the rules and regulations of state agencies.

Regarding your concern @KrissyPhil, some states have reciprocity agreements, which exempt employees from paying withholding taxes in the state they work. They only have to pay taxes in their home state. 

I recommend contacting the agencies to check which state they're subject to state income taxes, including the state unemployment (SUI). In QuickBooks Desktop (QBDT) payroll, you can use class tracking to track your employees in two locations. You may need to make manual adjustments to paychecks and tax forms.

@pmckenzie, the account number requested when setting up through the wizard is typically for your Alabama tax number. This is the number that identifies your business for tax purposes. 

Click on the link to access detailed information about tax forms, withholdings, unemployment, and other tax-related matters: Payroll Tax Compliance. You'll also find e-filing and payment information, general state and agency information, and employer registration details.

 Additionally, the provided resources comprise a compilation of topics on how to handle roaming employees, the tasks to be fulfilled before the end of the year, as well as instructions to set up AL OT Exemption: 

• Set up and track Alabama overtime exemption
• Set up employees and payroll taxes in a new state
• Year-end checklist for QuickBooks Desktop Payroll
  
  

Feel free to reach out to me again if you need any further assistance with setting up the AL OT Exemption item or any other payroll-related queries. I'll do my best to provide you with the help you need. Have a great day, @KrissyPhil and @pmckenzie.

The management at QB Payroll have said that they know there is a problem and hope to have it fixed soon. An update is set for release on 1-5-2024. There is nothing we can do but wait.  
But unfortunately, the other QB employees don't know that and keep giving out false information.

So, if there is an update scheduled to come out 1/5/2024, will it also include a correction for those payrolls that have been processed prior to that point?

Good day, logan. 

Recently, Alabama has passed a new overtime rule for hourly employees, effective January 1, 2024. QuickBooks is aware of this change and is working to enact this in our products. Regarding your concerns about the AL OT exemption rule, I suggest you contact our support team. This way, you receive timely updates, and they can provide further details.    

Here's how: 

1. Go to Help, then select QuickBooks Desktop Help/Contact Us.
2. Hit Contact Us.
3. Give a brief description of your issue, then Continue.
4. Sign in to your Intuit account, and choose Continue, and then Continue with my account. 
5. We'll email you a single-use code. Enter your code and select Continue.
6. Click chat with us or Have us call you.

I'll also add this article about correcting or amending previously filed federal forms 941 and 940: File a corrected Federal Form 941 and 940 in QuickBooks Desktop Payroll. 

Let me know if you have follow-up inquiries about QuickBooks updates. I'll get back to you as soon as I can. Keep safe! 

Did anyone get this to work properly?  We are trying to process our payroll for this week and it is not working correctly for us and I have ran the updates and followed the instructions provided by QBs.

I appreciate you for performing the troubleshooting steps shared by my colleague, chartre1.

I can see the urgency of being able to pay employees. With that, I suggest contacting our payroll support team so we can create an investigation about this issue.

To do so, you can follow the steps shared by Erika_K.

Once everything's good, you can check this article to pay employees: Create your paychecks.

I'm always around whenever you have payroll -related concerns.

This feature is still not working. I was on the phone w/QB last week on Thursday. She told me they were trying to work out the bugs.  This is not allowing us to set up OT Exempt employees in payroll.  I keep checking and updating daily.  I need to run payroll tomorrow.  Monday is a federal holiday.  PLEASE FINISH THE PROGRAMMING!!!!!!

QB is STILL trying to get this step implemented and working properly! They are aware that this is not working.  You would have thought KNOWING about this in June 2023, this would be ready to roll on 1/1/2024!!!

I keep updating every morning and it hasnt been changed yet.

Yes, QB is aware and they are working on this issue. As of right this minute, it has not been fixed.  Seems like they would have worked out the "BUGS" before 1/1/2024.

Good Luck....maybe today!

Dont waste your time on the phone. I did this last week and wasted 3 hours of my time.  My accountant was trying to help and I fianlly figured out with the QB rep that this is not ready to be used.

I recommend updating every morning (first thing). I wish QB could send out a mass email to QB (AL) customers and mention they are working on this problem so people dont WASTE anymore time on falling down a rabbit hole!!!!!!!!!!!!!!!!!!!!!

Bama 20,
What do you mean you are updating everyday?  I have been using this payroll software since 2009 and  I never had to update or use a wizard.  It seems to me that both intuit and Quick Books does the updates.