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June 27, 2025
Question

Alabama Overtime Exemption ending

  • June 27, 2025
  • 1 reply
  • 11 views

The Alabama Overtime Exemption is ending as of July 1st however my July 3rd payroll checks have time from before June 30th.  Quickbooks has already updated the software to calculate the state taxes on overtime.  Do I need to go in and alter that or will the amounts just be added to the employee's W-2 at the end of the year?  

1 reply

QuickBooks Team
June 27, 2025

Yes, you can adjust the pay date to ensure the overtime from the July 3, 2025, payroll checks are included in the employee's W-2 at the end of the year, @tmaples2222.


Any overtime wages paid on or after July 1, 2025, will not be included in monthly or quarterly withholding returns. With this, you can process your July 3, 2025 payroll and edit the pay date on or before June 30, 2025.


Here's how:
 

  1. Go to Payroll and click Run Payroll.
  2. Choose your payroll schedule and tick Continue.
  3. Set or review the Pay period and edit the Pay date.
  4. Select the employees you want to pay.
  5. Review or update the employees' hours and other relevant details.
  6. Click Preview Payroll.
  7. Confirm the QuickBooks Bank Account.
  8. Hit Preview Payroll Details or Submit Payroll.
  9. Once done, select Close.

 

 

To learn more about tracking the Alabama Overtime Exemption, refer to this article: Set up and track Alabama overtime exemption.

 

If you want to track your business's finances and gain insights, run payroll reports in QBO for detailed information on wages, taxes, and payroll data.

 

You can also Explore QuickBooks Payroll for expert guidance on managing employee payroll and preparing tax forms to help improve your payroll processes and make effective adjustments.


Post here in the Community forum for questions about Alabama Overtime Exemption. We're here to help you in this thread.