Set up the Alabama Overtime Pay Exemption pay type on the Manage Pay Types screen and Manage Pay Type Taxability screen to track overtime wages paid to employees within the effectivity of Alabama's temporary Overtime Pay Exemption.
Set Up Alabama Overtime Pay Exemption pay type
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In Manage Pay Types screen, add a pay type code to represent the Alabama Overtime Pay Exemption pay type.
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Set up the following for the added pay type code:
- Select the
Overtime checkbox.
- Clear the
Salaried checkbox
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On the Manage Pay Type Taxability screen, add a record for the Alabama Overtime Pay Exemption pay type code.
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On the State subtask, add a row for Alabama and select
Exempt from the
Income Taxability drop-down list.
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On the Manage Timesheet screen, create a timesheet line for overtime wages by setting up the following:
- Assign the Alabama Overtime Exemption pay type code in the Timesheet Line’s
Pay Type field.
- Enter the amount of overtime wages that are exempt from Alabama’s withholding tax in the
Labor Cost field.