Alabama DOR Adopts Income Tax Regulation on Overtime Pay Exemption

The Alabama Department of Revenue Oct. 31 adopted a regulation on the overtime pay exemption for individual income and corporate income tax purposes. The rule includes measures: 1) adding definitions; 2) providing that gross income doesn’t include the amounts received by an hourly wage paid employee for hours worked in excess of 40 hours in a week for periods beginning Jan. 1, 2024, and ending before June 30, 2025; 3) providing that “paid time off” and holiday pay aren’t hours worked and aren’t included in determining the hours worked in excess of 40 hours; and 4) specifying that the exemption ...