an updated article has been added for this:

Set up and track Alabama overtime exemption (intuit.com)

This work around with the new payroll items and using the old payroll items (see below) worked, now that the AL WH OT Exemption pitem that QB's created is calculating. When I ran a Payroll Item Detail report the wages from my new OT exempt payroll items matched the totals that QB's is calculating on the AL OT WH Exemption pitem  

ALSO - here's the updated article about the AL OT WH Exemption from QB's: Set up and track Alabama overtime exemption (intuit.com)

Here’s my work around so I can run payroll tomorrow and until QB fixes this (***I added new wage related payroll items, which did not end up calculating AL WH):

I have 1 straight time payroll item (which does calculate AL WH)

I have 2 time and half payroll items (1 old one (1.5x) which IS calculating AL WH; and 1 new one that I just added (OT 1.5x (exempt)) which is NOT calculating AL WH <but it is deducting from AL WH, which I’m not sure it should be doing>.

I also have 2 double time payroll items (1 old one (2x) which IS calculating AL WH; and 1 new one that I just added (dbl time 2x (exempt)) which is NOT calculating AL WH <but it is deducting from AL WH, which I’m not sure it should be doing>.

Since I need AL WH to calculate hours up to 40 hours regardless of if its straight time, OT, or double time, I will use the 1 straight time pitem for all straight hours, then I will use the old 1.5x pitem and 2x pitem to add any time that is needed to get the total hours to 40 hours – all of these pitems will calculate AL WH….THEN I will use the new pitems (OT 1.5x exempt and dbl time exempt) for any hours over 40 hours, since these pitems are NOT calculating (adding) to AL WH.

Then I can run a report on just the new pitems and see how much the gross totals were that AL WH was NOT calculated on, which is what we need for the AL WH tax forms.

Maybe this will help someone else set up their payroll for time being. I am worried that it is deducting some from AL WH instead of not deducting any amount at all, but the amount it deducts really is not that much and the main thing is that it does not add to AL WH when I enter OT hours after the 40 hours that should be calculating on AL WH)

Ok, but how are you setting up an OT item to NOT calculate AL WH? This doesn't appear to be an option for me.

I have the same problem when I tried to set up a new OT payroll item

Thanks for getting back wit hthe Community, ST827.

Intuit is currently working on an update which will implement your new taxation requirement. Once the update is performed, you'll receive an email notification informing you of the changes.

For the time being, you can get in touch with our Customer Care team and mention the situation. They'll be able to take note that your account is affected, which will add additional urgency for our Product Development team to release their update.

I'll be here to help if there's any additional questions. Have a great day!

The Alabama Overtime Exemption is NOT working properly.  The amount is zero and the withholding tax is not reduced on January payroll.

Contacted QuickBooks 4 times and finally on the phone with a payroll support person who duplicated the issue, but still no assistance on when this is going to be fixed. 

I was able to use an old OT payroll item - it happened to not be calculating as an overtime payroll item, so it is not excluding the Alabama WH.

A work around is to set up an OT payroll item using the "regular pay" wage payroll item, just call it overtime or time and half (this will calculate AL WH). The new overtime payroll items that you add you should call OT exempt (or something like that) so you can differentiate whether you want the overtime hours to calculate AL WH or not.  

Created the monthly the A6 form for January thru QuickBooks and the "Number of Employees with Exempt Overtime Wages" was calculated correctly, but the "Total of Exempt Overtime Wages Paid" was incorrect almost double the Overtime Wages paid.

Hi there, @SKG4. 

I appreciate you for contacting our support to help you with your Alabama Overtime Exemption (OT). Let me direct you to the best help possible.

To gain an update about the progress of the duplicated issue of Alabama OT, I recommend contacting again the QuickBooks Payroll Team they have the complete resources to check into the issue for you.

Also, thank you for providing your workaround in setting the Alabama OT. 

Furthermore, I'll share this article to help you close out the previous year and prepare for the new one in QBDT Payroll: Year-end checklist for QuickBooks Desktop Payroll.

Feel free to come back here if you have more questions about setting up payroll OT. I'll be willing to lend a hand. Have a good one.