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Tmalvern
Level 1

AL - OT Withholding Exemption

The new payroll line item for the State of Alabama Overtime tracking, I don't believe is actually tracking.  It has properly calculated the overtime withholding, but I don't see where it tracked it.  This is going to only apply to 

the State of Alabama.  I have enhanced payroll and quickbooks desktop version 2023 pro.  Is anyone else seeing the tracking?  It should show up on the paystub under AL-OT as what was not withheld from the overtime I would think.  I would love to hear from others if this is working for them or not.

7 Comments 7
BigRedConsulting
Community Champion

AL - OT Withholding Exemption

When you use an hourly overtime item on the paycheck, it will appear on the pay stub as a separate line item. Is that what you mean by "tracking"?

Tmalvern
Level 1

AL - OT Withholding Exemption

Yes, that is correct.  On the paystub, it doesn't show that anything was adjusted for the new exemption (AL-OT).  I am worried that when I have to report to the State of Alabama for the new exemption it will not have the correct totals to report since I am not seeing it populate on the paystub.  I  have pulled a payroll detail report and it is showing the amount of overtime paid out under the AL-OT payroll Item, but in the balance where I would think I should see the total adjustment in State Income Tax it is blank, no balance.  Am I wrong in thinking that an amount should be in that field?   Thank You

 

Tmalvern

conib
Level 1

AL - OT Withholding Exemption

I am seeing the same thing. I even put in 20 hours of OT to see if it would change and no change on the paystub. I was asking the same question if it is correct

Coni

LDO
Level 6

AL - OT Withholding Exemption

Why do you have to track it.  If it is overtime it is not taxable.

I do have this issue with overtime paid for hours less than 40 per week, so yes I do want to track it.
I used Quick Books online payroll and created a new pay type" Overtime under 40 taxable)  in attempt to tract hours.  The problem is that the newly created paytype causes the regular overtime to be calculated on the new pay type and not regular hours.  So if I have an employee that has 34 Regular hours  6 Overtime hours (caused he worked during the middle of the night)  and  4 overtime hours because he worked over 40  the dollars are all wrong.    I cant seem to make QB support folks understand the problem. 

tag;  alabama overtime exemption 
overtime wrong.png

 

calculate correctly.

 

Bryan_M
QuickBooks Team

AL - OT Withholding Exemption

Hello there, @LDO.

 

I see that you posted the same concern my colleague had answered. Feel free to click this link to direct you there: https://quickbooks.intuit.com/learn-support/en-us/employees-and-payroll/re-why-is-overtime-calculate...

 

For additional questions about running your payroll, don't hesitate to come back here. I'll be willing to lend a hand. 

AWoo
Level 1

AL - OT Withholding Exemption

Did anyone get a fix for this? My OT AL WH is still showing 0.00 for all employees and they all have OT?

LDO
Level 6

AL - OT Withholding Exemption

AWOO, 

so far none of our summary and detail reports show exempt overtime, nor do the employees pay stub.
Hopefully QB will fix this soon.


The only place I can see the exempt amount is by going to reports>payroll tax and wage summary" Then I click on the 3rd line titled  "AL overtime exempt income".  When you do this you will see a list of employees..  (note you can change the date range on the payroll tax and wage summary report

LDO 
p.s. I am using QB online,not the desktop version.    The desktop version may be different.

 

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