Hello there, @LDO.
I understand the importance of accurately tracking OT hours in QuickBooks.
To handle this in QuickBooks Online Payroll, you'd need to set up the overtime rules accordingly to calculate overtime based on the policy you've established.
Starting January 1 this year, if an hourly employee works more than 40 hours in a week, the pay from those extra hours is exempt from Alabama (AL) income tax. With this, QuickBooks added an option to enter the tax-exempt amount for AL income tax. Refer to the following steps below to do it:
- Go to the Payroll menu, then choose Employees.
- Click Run Payroll.
- From your employee list, select Actions, then Add tax-exempt pay.
- Enter the tax-exempt pay dollar amount and hit Add.
- Repeat steps 3 - 5 for each employee with tax-exempt amounts.
Moreover, check this handy article to learn more about AL overtime: Set up and track Alabama overtime exemption.
Stay in touch if you have any other questions or concerns related to payroll tasks. I'll be right here to answer them for you.
