Overtime Tax Exemption Webinar, by LyonsPro

Do You Know the Rules and Regulations Surrounding Alabama’s New Overtime Tax Exemption That Takes Effect January 1, 2024?

According to the Alabama Department of Labor, ‘for the tax year beginning on or after January 1, 2024, overtime pay received by a full-time hourly wage paid employee for hours worked above 40 in any given week are excluded from gross income and therefore exempt from Alabama state income tax.’

While that sounds simple enough, it just isn’t. There are many, many questions, including:

• If the first pay period of 2024 includes time worked in 2023, when exactly do I stop withholding?
• Is this rule applicable to hours my employee worked over 8 hours in one day or 40 hours in one week?
• How does my employee’s paid time off taken during any pay period affect this rule?
• Is my business or organization required to comply with this rule?
• What are my reporting requirements as an employer?
• How long will this exemption last? Is it permanent? Does it sunset?

We’ll answer these questions and more during a live webinar on Thursday, December 14, 2023, at 2 pm central.