Guidance Provided for Overtime Pay Exempt from Alabama Income Tax
In June, we reported that the Alabama Legislature passed HB217, which eliminates the 5% withholding tax on overtime from January 2024 through June 2025. Employers are subject to reporting for 2023, 2024 and 2025.
Now, the Alabama Department of Revenue has published reporting guidance and FAQs. Historical 2023 overtime data must be submitted by January 31, 2024.
Click Here for the full details on the Alabama Department of Revenue website.
Contact your Dent Moses advisor with questions.