Employees and payroll

I understand that time is of the essence for resolving this issue, sam_h. No worries, I'm here to ensure you'll get past this.

In QuickBooks, it's required that you only use the Overtime (x1.5) hourly item created by the QuickBooks payroll program with your employees' paychecks. If a custom Overtime (OT) item was created, you must take action. Create a new OT item via payroll EZ setup and merge the custom item into the new one.

To set up the item through the EZ Setup. Here's how:

1. Click on the Lists menu, then select Payroll Item List.
2. At the lower left of the Payroll Item List, click Payroll Item, then select New.
3. Select EZ Setup, then click Next.
4. Follow the onscreen instructions and tick the necessary radio buttons that apply.
   
   

Next, add a new Alabama-Overtime (AL - OT) Withholding Exemption to employees' profiles by going to:

1. Employee menu, then select Employee Center.
2. Click Edit Employee, then select Payroll Info.
3. Then click on Taxes, then select the Other Tax tab. Make sure to add the item to the list.
   
   

Additionally, you'll need to create the new Alabama-Overtime (AL - OT) Withholding Exemption payroll item (one-time only).

Here's how:

1. Get the latest payroll update. The Add Item Wizard will launch and take you through setting up the AL - OT Withholding Exemption payroll item.
2. Go to Employees, then select Employee Center.
3. Double-click your employee. Select Payroll Info.
4. Click on Taxes, then select the Other tab. Add the new AL - OT Withholding Exemption item. Then, click OK.
5. Repeat steps 3-5 for each full-time hourly employee.
   
   

Also, please note that the AL-OT Withholding exempt item will show 0.00 on the employee's paychecks/pay stubs. This item is for tracking/filing purposes only.

You may refer to this article for more details:

• Set up and track Alabama overtime exemption
• Set up and manage payroll schedules
• New Alabama Overtime Withholding Exemption Rule
  
  

Moreover, you can find reports about employee info, wages, taxes, deductions, and many more in your QuickBooks Payroll by creating a payroll summary report in QuickBooks.

Please keep me informed if you have additional payroll concerns. I'll be here anytime to provide the necessary assistance.