2024 Updated Tax Routine for Alabama (US only)

This routine contains changes that required release via service pack; therefore, it will not be available in a tax update. You must install this service pack to get this routine.

Effective Date: 1/1/2024

Procedure Name: bspPRALT24

Per Alabama state requirements, beginning January 1, 2024, the tax calculation process will now exclude overtime pay received by hourly wage paid employees for work performed in excess of 40 hours a week.

For withholding tax purposes, only wages subject to Alabama withholding are used in calculating when the 40-hour weekly threshold has been exceeded. The State of Alabama defines exempt overtime as "amounts received by hourly wage paid employees as compensation for work performed in excess of 40 hours per week, regardless of the rate paid for hours over 40 in a week or how it is calculated." Therefore, the state tax exemption is applied to wages received after a weekly 40 hours worked threshold has been met.

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