Hello Team
The Alabama Department of Revenue has recently released official guidance on implementing the law enacted in June to exempt overtime from the State of Alabama payroll tax withholding. Overtime pay received on or after January 1, 2024, through June 30, 2025, by full-time employees who work more than 40 hours a week will be exempt from state income tax.
I would like to know if this will be part of BSI implementation or if changes to the Payroll schema will be necessary.
230804_REL_OvertimeExemptionGuidance.pdf (alabama.gov)
Please help me find the correct direction to have this in place before January 1.
Thank you.
Paulo Codello.