Announcements for Payroll and OTL can now be found in the Announcements - Payroll and OTL - EBS (MOSC) subcategory. Follow to be sure you don't miss a thing!
What is the road-map plan for AL State Overtime Pay State Income Tax Exemption starting 01-JAN-2024
Oracle EBS Payroll, 12.2.11 version.
We have find below note on Alabama State website about 'Alabama State Overtime Pay State Income Tax Exemption rules starting 01-JAN-2024', hence reaching out to Oracle Support to understand the payroll impact, and the road-map plan for the new amended AL tax rules.
https://www.revenue.alabama.gov/individual-corporate/overtime-exemption
For the tax year beginning on or after January 1, 2024, overtime pay received by a full-time hourly wage paid employee for hours worked above 40 in any given week are excluded from gross income and therefore exempt from Alabama state income tax. Tied with this exemption are employer reporting requirements to ALDOR. Employers are required to report the total aggregate amount of overtime paid and the total number employees who received overtime pay.