Reverting changes to Alabama state income tax overtime reporting effective July 1, 2025

Summary

Beginning July 1, 2025 overtime pay is no longer tax exempt in the state of Alabama. The changes below should be reverted and employees should use the traditional ALSIT formula beginning July 1, 2025.

Description

 

 

Resolution

Beginning July 1, 2025 overtime pay is no longer tax exempt in the state of Alabama, the changes below should be reverted and employees should use the traditional ALSIT formula beginning July 1, 2025. 

To make this change, the formula used for the St_Income field in employee defaults should be changed to ALSIT (or **SIT for multiple state payrolls). 

Also, amounts from the Special 4 & Special 5 fields on the employee record should be removed if they were entered as part of the ALSITT formula configuration used previously to report exempt overtime amounts.

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Solution Properties

Solution ID
231211145443793
Last Modified Date
Tue Aug 05 17:40:59 UTC 2025
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