Alabama is exempting overtime pay from state income taxes, under a bill that will go into effect on Jan. 1, 2024.
Overtime pay is compensation paid to an hourly employee for work performed in excess of 40 hours in a week, under HB 217. The exemption will be available for tax years beginning on or after Jan. 1, 2024, and ending prior to June 30, 2025.
Employers must report overtime wages to the state revenue department starting for tax year 2023, under the bill. They must report the number of hourly employees who received overtime wages and the total ...
Learn more about Bloomberg Tax or Log In to keep reading:
See Breaking News in Context
From research to software to news, find what you need to stay ahead.
Already a subscriber?
Log in to keep reading or access research tools and resources.