Alabama Overtime Exemption Reporting Requirements

Alabama requires that the amount of overtime paid, and the number of employees are reported on for the entire year of 2023 for a one-time historical report as well as at least quarterly for tax year 2024.

How does this impact you?

• Any earnings that are Alabama Withholding qualified and are entered through Avionte's Standard OT transaction types will be considered qualified for the Alabama Overtime Pay Exemption [ONLY the OT standard transaction type qualifies].

• It is the Employers responsibility to ensure that employees who qualify for Alabama Withholdings must have the appropriate OT Plan configured for that employee to ensure that the system determining OT adheres to the 40-hour minimum qualification.

• It is the Employers responsibility to ensure that any manual entry to the Standard OT transaction type, the employee has met the 40-hour minimum qualification, otherwise the employer should apply the Overtime amounts to a non-standard transaction type to have the earnings NOT fall under the Alabama Overtime Pay Exemption.

The one-time historical report is on the A-3 form. The monthly/quarterly reporting starts with Quarter 1 2024. The number of employees is reported on the A-6 for monthly filers and the A-1 quarterly report for quarterly filers.

The State WH reports for CLASSIC and BOLD have been adjusted for the state of Alabama to reflect the amount of OT paid and the number of employees. The data pulled from this report can be used for the one-time historical report and monthly and quarterly reporting requirements.

• Standard AQ - State Tax WH
  • 
    
    
    
• State Tax WH Report (BOLD Analyze)
  • 
    
    
    

For more information, and to ensure your compliance, please refer to the requirements from Alabama:

Overtime Exemption - Alabama Department of Revenue

Third-party link Disclaimer: These links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by [The author] of any of the products, services, or opinions of the corporation or organization, or individual. [The author] bears no responsibility for the accuracy, legality, or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.