Even though the QuickBooks lady on Friday verified that all of my codes were set up properly, I went ahead and followed the procedures you outlined - created and merged a new overtime code - and it still did not work.  I entered 40 hours of straight time for an employee and the Alabama withholding was $17.96.  When I added 10 hours of the NEW overtime code, not only did the withholding not remain $17.96, it actually went down to $17.21.  I even set up a completely new overtime code (without merging) and ran a test paycheck for the same employee with that new code and still got the same results.  

What is your next set of instructions for me?