Alabama to exempt Overtime Earnings from State Income Tax as of January 1, 2024
Summary:
On June 8, 2023, Alabama passed bill HB 217 to implement a measure to exempt overtime pay for hourly workers from state income tax to address a workforce shortage. The legislation was unanimously approved by state lawmakers. The exemption covers overtime pay beyond 40 hours per week, in accordance with federal law and will take effect from January 1, 2024, until it expires after 18 months, unless renewed by state lawmakers. The bill also includes a provision that requires employers to report the total amount of overtime wages paid to employees.
How will Oracle handle this, and will it be ready for January?
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